Ten Mistakes by BP a Trader Should Never Make

1. No Exit Plan.  There was no exit plan for if the rig (RIG?) exploded.  Before every trade we must decide where and how we will exit BEFORE entering the trade. 2. Live to Play Another Day.  It is not definitive that BP is a viable company going forward even with 6.08 Billion in quarterly profits.  1) When will the … Read More

Intraday Reversals Indicate What?

In the final 3.5 hours of trading Friday we touched 109 three times on the SPY and 110.30 twice. Generally, this type of up down action does not instill much confidence in market participants, and many believe it is a sign of lower prices to come. I’m not in that camp. Someone definitely was dumping a couple of billion dollars … Read More

Traders Ask: What is the Proper Exit on a Swing Trade?

Reader Alex asked: My name is Alex and I’ve been swing trading for two years. I’ve been reading SMB’s blog for a while, and really enjoy the posts on trader development. I have recently journaled a question that emerged during two of my recent short trades. I believe that this question relates to intraday trading as well. Depending on conditions … Read More

SMB on StockTwitsTV

Steve appeared on StockTwitsTV to discuss the Market and the stocks in play for the day.

Maximizing My Weaknesses

Today I maximized my weaknesses.  I found the set up that is a trading weakness for my system, traded it with size, and now sit with a P&L that represents the worst of my trading.  In one sense this is quite impressive.  I did not just underperform this open.  I did as poorly as I possible could. Fresh news hit … Read More