High Frequency Trading

In light of all the recent commotion about high frequency trading (HFT), we have decided to compile a list of articles that depict the advantages, disadvantages, as well as arguments for and against HFT. The list follows below: Stock Traders Find Speed Pays, in Milliseconds: This is the original exposé by Charles Duhigg in the New York Times What’s Behind … Read More

SMB Reading the Tape

Lately we have been receiving many inquiries from our fellow readers wanting to learn more about tape reading. We are NOT ignoring your emails and comments in our blogs! Unfortunately tape reading is a complex and extended topic that cannot be covered in a handful of paragraphs. However, because of the high demand we are currently working on developing a … Read More

FSLR After Hours

Some great action in FSLR after reporting today.  It immediately drove up from 175 to 187.  There was a pullback to 180 where the bid momentarily held before dropping out to 179.  Before you could blink it drove up to 190.  This powerful drive got us to start thinking about where to buy on a pullback.  Gman was thinking 185 … Read More

Keep It Together

Panic is not a good thought for a trader.  And during really crazy moves in a stock, when you may be tempted to panic, calm is required.  I had such a situation on the Open with MHS.  Let’s discuss. So we start the day and Alexander gets me into this MHS.  I wanted to trade something else but he just … Read More

The Pattern

As traders we are always looking for patterns.  If we can spot a trading pattern that repeats itself (at least for awhile) we have an edge.  When people hear the word “pattern” they usually think of a visual pattern.  For traders this would typically be represented as a particular chart pattern.  For those of us who read the tape it … Read More

A Bad Day

As traders some days we just won’t have it. During the last two training classes at SMB our best students have been female. For some reason only about two percent of the resumes sent to us originate from women (how do we get more?). A leading female student in our present class finally had a negative trading day in her … Read More

Weekend Review: July 20 – 26, 2009

The SPY finally traded above that 95 level this week.  In fact, it traded above that level for most of the week.  With earnings surprises to the upside from most S&P companies, it’s understandable as to why.  Even in the face of tech heavy weights MSFT and AMZN selling off on initial earnings results, we managed to hold a bid … Read More

HFT and AMZN

HFT (high frequency trading) has dominated the financial media of late.  @zerohedge, Charlie Gasparino and CNBC, the StockTwits nation, @steenbab, GMan from @smbcapital, and many other talented bloggers have all weighed in.  And then came Senator Schumer: (from Bloomberg courtesy of @zerohedge):  Senator Charles Schumer asked the U.S. Securities and Exchange Commission to ban “flash orders,” saying the transactions give … Read More