Archive for November 2011

Trading Lesson #1: Buying A Strong Stock At Prior Day’s Afternoon Support

Nov 30th, 2011 | By | Category: General Comments, Steven Spencer (Steve's) Blogs, Technical Plays, Trading Lesson
New blog format: Short trading lessons with charts for illustration. Trading Lesson #1: Second Day Play--Buying A Strong Stock After It Pulls Back To Prior Afternoon's Support Area INHX was on our radar yesterday after another fresh news drug catalyst. As you can see from the two charts below INHX is trending higher on multiple time frames. Here is the info from this morning's gameplan: We had a stock that had an explosive move the prior day and closed in the top 20% of its intraday range. The first trade we look to make the following day in this stock is a pullback to the prior afternoon's support area. Disclosure: Read more [...]


A Few Spins Of The Wheel

Nov 29th, 2011 | By | Category: General Comments, Rick's Blogs, Systems Development, Systems Trading
Last week we talked about the casino’s edge which in the trading world is called expectancy, but all that expectancy tells us is whether or not our trading strategy is likely to be profitable or not—but not how much money we might make.  How profitable depends on how often we have a chance to trade our system—will it be a few times a year, a few times a week, or many times per day. And this is also how our casino makes money—calculating the edge is easy, but the number of hands dealt or spins of the wheel in an hour start to tell us the profit potential.  Going back to the statistics from a real casino in Las Vegas, Read more [...]


Free Options Webinar: SMB’s Options Tribe: Today at 5pm EST: Options Trading and Trader Psychology

Nov 29th, 2011 | By | Category: General Comments, Options Education, Seth Freudberg's Blogs
Today at 5:00 pm Eastern Standard Time SMB’s Options Tribe is an online community of options traders dedicated to sharing successful options trading ideas with all of our members worldwide. Each week the community will meet online for the primary purpose of watching live presentations made by outstanding veteran options traders and experts in the world of options trading. This week, Darren Miller of www.Attitrade.com will be discussing his approach to options trading and the role of psychology in trading. Register for this FREE Webinar : Here Seth Freudberg Director, Read more [...]


So You Say You Want to Be a Pro Trader

Nov 28th, 2011 | By | Category: Mike Bellafiore's (Bella's) Blogs
I'm the guy you pitch as to why you should be hired for your "dream job" as a trader. This whole trader recruiting thing is inverted. You should not be pitching me. My desk should be pitching you. But you need to do some work before this can happen. Like start developing a track record now! During a recent interview at the Las Vegas Trader Expo I outlined what I call the GM Test. If I were the general manager of the New York Knicks and I told you someone sat in my office and said, “You know, I really like this whole basketball thing. I have been playing a lot of pickup basketball with my buddies from DrinkingGames Dorm, we Read more [...]


Using Prior Days’ Price Action–NFLX

Nov 27th, 2011 | By | Category: General Comments, Steven Spencer (Steve's) Blogs, Trader Development, Trading Lesson, Trading Theory
Prior to the Open of Friday's shortened trading session there was not much in the way of fresh news catalysts. So my first trading choices were second and third day plays. For those of you who are new to the SMB Blog you can use the "search" feature on the blog to review posts explaining how and why we trade "second day" plays. NFLX was at the top of my list for potential shorts. Earlier in the week fresh news had caused it to gap down to 69 and it rallied about 4 points from this price. As a short term trader I am highly attuned to prices from which a stock rallies  or gets crushed in the preceding trading days. I have found Read more [...]


December 55 day $RUT bearish butterfly options trade: The finale

Nov 25th, 2011 | By | Category: General Comments, Options Education
On  Wednesday,  the market  gapped down and  continued it’s downward trek of the previous  5 trading days.  According to the guidelines of the   bearish butterfly strategy,  the reduced profit target of $1000 comes into effect  21 days to expiration on this lot size.  As 21 days to expiration was yesterday, and the position was up $1800, I  previously stated that I was going to close the position instead of fighting with it IF the market acted up.  Well the market acted up, or should I say down ,  so I closed the position on Wednesday  morning for a $1220 gain, after commissions, which makes for an 18% gain Read more [...]


Free Options Webinar: SMB’s Options Tribe: Tuesday, November 29, 2011 at 5pm EST: Options Trading and Trader Psychology

Nov 23rd, 2011 | By | Category: General Comments, Options Education, Seth Freudberg's Blogs
Tuesday  November 29, 2011 at 5:00 pm Eastern Standard Time SMB’s Options Tribe is an online community of options traders dedicated to sharing successful options trading ideas with all of our members worldwide. Each week the community will meet online for the primary purpose of watching live presentations made by outstanding veteran options traders and experts in the world of options trading. This week, Darren Miller of www.Attitrade.com will be discussing his approach to options trading and the role of psychology in trading. Register for this FREE Webinar : Here Seth Read more [...]


Traders Ask: Is it Better to Trade Stocks in Play or a Basket?

Nov 22nd, 2011 | By | Category: Mike Bellafiore's (Bella's) Blogs
Question: Greetings From The Great White North Bella, Just re-read One Good Trade again (it just keeps getting better) and I found myself asking the same question. Are we better to trade Stocks in Play that may be news to us but have momentum and/or should we be playing a basket of names which we have become familiar with. By watching the same names repeatedly we in effect are consciously and subconsciously developing our intuition in those names. Or perhaps the answer is a little of both. Appreciate your thoughts in straightening out the conflicting thoughts. Bella My response initially to this email was: What do Read more [...]