Getting Rewarded for Doing the Wrong Stuff

We teach our traders how to trade while taking little risk in the marketplace. We teach them the fundamentals and then allow each trader to develop a trading style that suits their personality. Further, we give each trader the freedom to trade whatever stock happens to be in play and in a fashion that suits their style. Unfortunately, this allows … Read More

Reading the Tape Syllabus

We have gotten some comments and emails from some fellow readers asking what is included in our Reading the Tape program so we prepared this syllabus. SMB Reading the Tape Syllabus DAY 1: The Basics The Basics 1. Two quick written lectures on The Level II and The Prints including a Glossary. 2. One 15-minute audio lecture on the Prints … Read More

The Cost of Fading Strong Stocks

Into the Close I sit, trade, and also must watch what our traders are doing on my Admin screen.  It is my job to make sure they are not violating market fundamentals.  And I saw this on a few trader’s screens: -1000 AIG -1600 AIG This is an example of breaking a market fundamental.  We do not short strong stocks. … Read More

StocktwitsTV – Live From the SMB Classroom with Bella

Tonight, SMB Capital’s Mike Bellafiore appeared on StocktwitsTV to pick up where he left off last week discussing “A Trader’s Day” and the things traders need to do each and every day to become successful. 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

Trading AND…

IEL sits at his trading station staring at his screens ready to pounce. GMan sits at his much larger trading station (he is the Head Trader) watching every tick in the market, with his hands on his keyboard. Scuba sits patiently processing every bid and offer in ARNA (even though he is a Partner). And then some others trade AND … Read More

Premarket Volume a Tell- DNDN

Last night I went out long DNDN.  At 8:30 AM I was down a cool $80 on my position.  Not exactly something for which to put down my breakfast Cliff protein bar. DNDN had cleared an important resistance level on Thursday at 27.50.  It closed still in an intraday uptrend and 80c from its intraday high at 28.75.  Stocks like … Read More

The Little Things

LVS has been on SMB’s radar for the past couple of weeks.  It made a nice run from 15 to 20.  Yesterday, it showed signs that it was going to give back some of its recent gains.  It sold off hard from 20 to 18.50.  Gman, our head trader, was short it for most of the afternoon.  He identified some … Read More

Learning Order Flow and Tape Reading – TraderFeed

Dr. Brett Steenbarger, respected market psychologist, recently wrote on TraderFeed about the importance of Reading the Tape for short-term traders. In his post, he says that “Reading the tape is key to getting in and out at good prices.” And, “For experienced tape readers, knowing prices where large orders have come into and out of the market can also be … Read More