You Take The Money Where You Find It

You would not believe the amount of shit I took after posting this to the StockTwits stream a couple weeks back….


I recieved anonymous tweets, angry emails, and sky-written messages above my house lambasting me for suggesting a possible trade in Sears Holdings ($SHLD).

Real traders – – the cool ones at least – – would not touch Sears with a ten-foot science pole I was informed.  I mean after all, it’s not Netflix ($NFLX), or Apple ($AAPL), or Amazon ($AMZN), or Twitter ($TWTR), Facebook ($FB) or Google ($GOOG).  Those are serious “trading” stocks.

Didn’t I know that Sears was a dog?

Didn’t I know retail was dead, and that Sears was the deadest of the retail dead – – literally with zombie stores  – – where the only activity is the occasional visit by a hoodie wearing Brian Sozzi, pursuing his fetish-like documentation of sloppy end caps and under-stocked shelves?

Didn’t I know that Sears was going to go the way of Circuit City, Borders, and Woolworths?

Not much however was said when I posted this to the streams less than two weeks later…

Up 22% since this. RT @bclund: $SHLD has put in a double bottom. If you’ve ever wanted to bottom fish it, now is a good risk/reward spot.

— Brian Lund (@bclund) Feb. 13 at 08:34 AM

Look, the point of this post is not to show how great I am – – though there is a pretty powerful argument that could be made for how great I am – – but to illustrate the point that you find opportunities where they present themselves, not where you think they should present themselves.

And if you are trading, which by definition means you are only using technicals to buy and sell, then whatever the narrative is for the company underlying the stock is irrelevant.

I haven’t bought anything in a Sears in years and regularly joke that if I need a bumper pool table in hurry, it’s the first place I will go.  But none of that matters when sizing up a trading opportunity.  Price, volume, and support and resistance levels have no relation to what Brian Sozzi, or anybody else for that matter, thinks about Sears.

Remind yourself that the point of trading is not to “be cool,” but to make money.  Money can be made in all types of stocks, in all sorts of sectors, no matter if they are hot or not.  And if by chance you happen to look cool while doing it, well then consider it a bonus and move on to the next trade.

  • Anon Trader

    Thanks for a timely post. It sums up why I started turning off StockTwits and Twitter and just watch the charts. Sometimes, it’s just not worth being that social. There are, as you said, a few good traders out there worth following who are happy to share their wisdom, but they’re the minority. I guess that’s what you get with a free platform…the good, the bad and the fugly

  • chartsdontlie

    Thanks for writing this. You are one of the traders I respect…and yeah, most people are confused trading with investing.

  • M Falke

    I’ve found that having your trade bashed on Twitter and then seeing the trade start to work has been a great signal to increase size.

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Brian C. Lund

Brian C. Lund

Great father. Good friend. Decent trader/writer. Lacking husband. Solid drummer. Sometimes funny. Often A-hole. Terrible poker player. Too smart. Punk rock. Work in an ice cream shop.

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