Archive for January 2011

My Trading Philosophy

Jan 31st, 2011 | By | Category: General Comments, Steven Spencer (Steve's) Blogs, Trading Theory
(This blog was written on 1/25/11. But I'm lazy so didn't post it until tonight) When a stock has fresh news and huge volume it is a great trading candidate for me.  My experience tells me that there will be more trading opportunities intraday in these situations and the risk/reward will be more favorable than most other trading scenarios.  In these scenarios I have a very strong bias towards taking a position with the direction of the trend.  If the trend intraday, multi-day and longer term line up it will be very difficult to get me to take a position in the opposite direction. One such opportunity arose this morning Read more [...]

Why Am I Getting Stopped Out More? (Part IV)

Jan 31st, 2011 | By | Category: Mike Bellafiore's (Bella's) Blogs
During Part I, Part II, and Part III of this series we identified a new algo on the desks of more traders that may be causing us to get stopped out more. For Part IV let's offer some solutions. Some ideas from SMB Readers: Trade instruments wich are more liquid or trade on a higher timeframe. Cheers, Markus This is an excellent adjustment to consider especially for those who wish to trade with big size.  However, I've noticed that stocks with tight spreads are trading with spreads that in practice are wider. Idea is to trade with smaller position and than add to them as you get confirmation of breaking new levels and Read more [...]

SMB University – Live From the SMB Classroom with Bella

Jan 31st, 2011 | By | Category: SMB on TV
Trading MON with Mike Bellafiore. Read more [...]

Traders Ask; Position Size of 1/3?

Jan 31st, 2011 | By | Category: Mike Bellafiore's (Bella's) Blogs, Traders Ask
Question: I basically swing trade. I always try to put on a position in 1/3's. How does that work daytrading? Is there time to do a position that way? I like to have another good entry point to add to a trade. How is that possible in a daytrade. Maybe I just am not used to that fast of a trade. Do you look tic by tic? Thanks, G H Oregon Bella Responds I will enter 1/3 of my usual tier size for a position.  We trade in lots, generally of 1,000 shares.  So for purposes of this discussion we will discuss some times I might start a position with 300 shares. Some times I might enter for 1/3 of a position: a) IPO b) Read more [...]

SMB Morning Rundown – January 31, 2011

Jan 31st, 2011 | By | Category: Trading Ideas
The SMB Morning Rundown highlights the key levels in the Market and the best trading setup that we have identified for the Open. Read more [...]


Jan 29th, 2011 | By | Category: Guest Blog, Sammy's Blog, Trader Development
Perseverance: steady persistence in a course of action, a purpose, a state, especially in spite of difficulties, obstacles, or discouragement. At the start of the New Year, I set certain goals and high expectations for myself. However, in the month of January, I seemed to have a tough time trading. I started to have down days during my first two weeks, followed by a positive week, which was then followed by two consecutive stop out days. After these occurrences, I contemplated whether or not I should trade on the demo account for a few days just to get my confidence back. However, my mentor suggested that I continue to trade Read more [...]

Guest Blog: Intraday reversal trade

Jan 29th, 2011 | By | Category: Adam Grimes's blogs, Guest Blog, Trading Lesson
A look at a developing trader's reversal trade in NBL on 1/29/11 Read more [...]

80/20 Rule

Jan 29th, 2011 | By | Category: Mike Bellafiore's (Bella's) Blogs
Do you ever think about a company and critique what they can do better?  There are steps they could take to make themselves twenty percent better and you have found the path.  We are clients to some who could do things better and we have the answers.  But the question becomes what do you do with this information.  And what I see in our space and beyond is too many spending 100 percent of their energy obsessing about the 20 percent a firm could do better, forgetting how hard it is to build the 80, to their own detriment. For a clearing firm it can be the short list.  "They should find a way to expand their short list.  If Read more [...]