Archive for September 2009

Good on Paper (GOP): Be Respectful

Sep 30th, 2009 | By | Category: General Comments
I just handed in my manuscript for One Good Trade to Wiley. I am relieved to have this behind me. During my editing process I discarded some humorous anecdotes that just did not quite fit with my book. I thought you might enjoy this one interview I had with a prospective prop trader candidate. GOP: Be Respectful This next interview occurred on a Friday. By the end of the week if I can keep my eyes open past 9pm this is a huge victory. And it's 7pm and I am at the office. I am hungry. I really just want to go home, lie on my couch, order a pizza, and watch the Yankees. But we are a little behind with our interviews and there Read more [...]

Understanding Inflection Points

Sep 29th, 2009 | By | Category: Steven Spencer (Steve's) Blogs, Trading Theory
A core part of SMB's trading philosophy is identifying inflection points in the stocks we trade each day. These are prices where battles take place between buyers and sellers. After a battle is over a stock will typically move very powerfully away from these prices. Sometimes stocks will touch these prices two, three, or even four times in a day. When a stock approaches these critical levels a pop up window will appear on our trading platform to give us a heads up. We then use our trading skills to take advantage of these great risk/reward prices. We offer these alerts via our commercial website to those interested in the stocks Read more [...]

From the Mailbag

Sep 28th, 2009 | By | Category: Mike Bellafiore's (Bella's) Blogs
I received this email from Reader Josh.  This is a very interesting dilemma he finds himself in as a new trader.  For SMB Readers do you have any advice to offer Reader Josh? Hello Bella, I believe my question is geared towards adjustments.  I am 25 years old.  I have been playing poker and making money in it since 2004 playing online cash games, 8 tables at once.  i can process information extremely quickly and can be aggressive enough to be able to manage that many tables with positive expectation almost every week.  I am a recent graduate (april 2009) of online trading academy.  I have been making money trading options Read more [...]

StocktwitsTV – Live From the SMB Classroom with Bella

Sep 28th, 2009 | By | Category: General Comments
Last night, SMB Capital's Mike Bellafiore appeared on StocktwitsTV to discuss trading rules. Mike discussed why it is important for active intraday traders to develop a set of trading rules. Click here to watch the clip. Mike appears on StocktwitsTV every Sunday at 8:30pm so be sure to tune each week to watch the show. Read more [...]

Reading the Tape with Gman: How to Use Levels to Win

Sep 25th, 2009 | By | Category: General Comments
Gman, head trader at SMB Capital, wrote an excellent article for Wall Street Cheat Sheet about using tape reading skills to identify and take advantage of key intraday and longer term levels. You can read the full article here. Read more [...]

SMB in

Sep 25th, 2009 | By | Category: General Comments
Mike Bellafiore, partner at SMB Capital, was cited yesterday in an article on about the weakness in DRYS. You can read the full article here. Don't forget to follow us on Twitter! Read more [...]

Ya Gotta Be Flexible

Sep 24th, 2009 | By | Category: Steven Spencer (Steve's) Blogs, Trading Theory
As an intraday trader I need to make many adjustments during each trading session.  I have to determine if a stock is a short, a long, or a no trade.  I may also make adjustments in how I am entering and exiting my position.  If I don't keep an open mind it is impossible to make the adjustments necessary to be consistently profitable. I was trading RHT and AIG when the market opened today.  AIG had a very powerful opening drive above 49.  I decided to buy on a pullback as I thought the opening drive was the beginning of a multi point up move.  I bought some stock at 48.50 and some more in front of 48.  I got flat when Read more [...]

SMB Capital on StockTwits TV

Sep 23rd, 2009 | By | Category: General Comments
Today, SMB Capital's Steve Spencer appeared on StockTwitsTV to discuss the Market and the stocks in play for the day. Steve also answered several questions from our viewers about our trading style and, specifically how the Market influences our best morning ideas. SMB Capital appears on StockTwitsTV every M, W, F at 2pm so be sure to tune in. Watch the clip here. Read more [...]