DaviGreenberg has over 22 years of experience in private investments, commodities trading, and global markets. Throughout his career, Mr. Greenberg has appeared on numerous media outlets including CNN, Fox Business News, Bloomberg, and CNBC. He is a guest lecturer for the finance program at West Point Military Academy, the Whitman School of Management at Syracuse University, and Hofstra University. He also teaches at the Museum of American Finance.
Latest by David Greenberg
By David Greenberg | Greenberg Capital | August 8, 2013
A few months ago, I was away from my desk and wanted to short NFLX. I called one of my brokers and told them to sell NFLX at the market, then hung up the phone.
NFLX was trading at $175. 25 and I waited for the email on my execution, knowing that it wouldn’t be exactly there but hoping it would be close. The email came and I was filled at $173.46. I had to laugh for a moment because it was trading at $176.00 when I got the email.
In response to my request for times and sales, I received an email showing me that the order was placed at 9:35, along with a note from my broker saying …
By David Greenberg | Greenberg Capital | July 14, 2013
In Trading Tip #4 – Being Able to Admit When You’re Wrong, there is a section that speaks about never adding to a losing position. While this is true almost all the time, there is one instance when I find that adding to a losing position can be an effective part of a trading strategy.
This is when there is either a blowoff top from a massive spike or a blowoff bottom from a massive sell off, such as what happened with recent the up move in Netflix and the down move in Apple. In after-hours trading, Apple dropped $50 – 9.83% due to revenues. On a move such as this, I would test the market by buying one …
By David Greenberg | Greenberg Capital | July 7, 2013
I’ll never forget the last conversation I had with my ex-wife just before we started our divorce. I sat her down, looked into her eyes and told her, “I’ve spoken to every expert and mathematician out there. They’ve told me it’s theoretically impossible to be wrong every single time.”
As a trader, one thing I know I am good at and have no issues with is admitting when I’m wrong and then changing direction quickly. It is an essential quality for being successful.
Being right is overrated. I would rather be wrong and profitable than try to prove I am always right and be a bad trader. After managing hundreds of traders and trading for over 22 years, I have …
By David Greenberg | Greenberg Capital | June 26, 2013
*This blog was first posted at www.greenbergcapital.com on April 14, 2013*
For years, we have seen advertisements on TV and in the newspapers telling us to buy gold. We’ve been told that it is a safe investment. And for the most part, they’ve been right. For the past 12 years, depending on how deep your pockets are, gold has been a good buy. However, we saw on April 12th that gold, at any given moment, can turn and drop fast and hard – just like in all markets.
From the 1970’s up to until about 2000, futures in gold were traded in London on the LME and COMEX. These markets were physically settled and deliverable contracts, a true supply …
By David Greenberg | Greenberg Capital | June 25, 2013
Take if from me – THERE IS NO HOPE IN TRADING. I tell this to every one of my executive coaching clients. If you keep thinking, “I hope it goes up” or “I hope it goes down,” then get out NOW. It’s not working. Do yourself a favor. Get flat and take another look at the market.
I know too many traders who are concerned about being flat and missing part of the trades. Don’t be. You can always get back in. No one catches every part of a trade. Being flat is the best and sometimes only way to think clearly, even if just for a moment.
How many of you have been crushed in a down move by …
By David Greenberg | Greenberg Capital | June 21, 2013
In trading, you shouldn’t trust your instincts. This goes for all types of traders, from the smallest novices to the largest firms. Once a position is established, whether it’s short or long, you should test and test often. It’s the only way to be successful.
Here’s an example: Looking at the recent Facebook IPO, let’s say that Trader One is a short-term day trader who likes to be flat by the end of the day, so he/she buys 500 Facebook shares at $27.75. The stock moves to $28. In this case, I would suggest testing the market by selling just 100 shares at $28.
This does two things. First, it locks in a $25 profit to help the cost average …
By David Greenberg | Greenberg Capital | June 19, 2013
David Greenberg is a former board member of NYMEX with more than 22 years of trading experience. This is the first tip of his successful trading series.
Trading Tip #1 – Leave Your Ego at the Door
In my past role as President of NYMEX Clearinghouse Sterling Commodities, our firm’s risk management included a nightly ritual of analyzing trading accounts from the previous day. It was essential to review each trader’s patterns in order to step in if necessary, letting them know it was time to pull back or even take a few days off to regroup. You could also tell when traders were feeling confident. It was relatively simple to predict when they were about to move to …