I received this note from an excellent trader about the market before today’s open: Won be trading for the rest of the year. Tired of this (insert cuss word- deleted) trading. debating on even coming back till earnings season. I can certainly understand those thoughts after struggling through a tough trading market to start December. I have had those … Read More
SMB’s Options Tribe: Today at 5pm EST: A Multi-Month, Multi-Index Butterfly Strategy
Tuesday December 13, 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 … Read More
A tough trading market
It has been tough trading out there of last for most. Here are some emails that I have received from traders: today was another bad day, cant seem to get a grip on this market, not alot of volume it feels to many shake outs, feel like shutting it down for the year. Im not even making terrbible trades just … Read More
Make this adjustment to your trading
I received these comments about December trading with a weekly review: As mentioned earlier in one of my daily reviews, I have added a plan change for December: I will lower my tier size to 100 shares on everything besides in-play A-setup stocks. Be more selective than usual. Avoid trading in & out unnecessarily. Lock in profits more quickly than … Read More
A good trade not to make
Hi Bella, I’ve been trading for about 5 months now. I read the SMB blog regularly and appreciate all SMB does to help developing traders. One issue I’ve come across in my trading is entering into trades of stocks with large spreads. I was watching COO on 12/9/2011. The stock had gaped up on the open. I tried to enter … Read More
When to Feel Pain as a Trader
Hi Bella, I have done a lot of thinking over the weekend about my trades, especially the ones that I don’t catch short when they consolidate below a certain level for quite some time before the next massive down move. As you know, most of the traders on the desk did great with this type setup in PLL on Friday, … Read More
Don’t get burned by the market
Yesterday after an aborted MRI on my back I hit the office to review some of the work on our desk. One of the steadiest of trainees had a miserable trading day. I am not sure I can remember such a day of red from this new trader. In his daily review he wrote: Today is probably the worst I … Read More
Trading Lesson #2: Don’t Trade Cash Takeovers
Trading Lesson #2: Do not trade stocks that are purchased in an all cash transaction. There is very little intra-day movement. Here is the chart for BCSI on December 9th 2011. It spent almost the entire day in a 5 cent range. Not exactly a treasure trove of opportunity for directional traders. Steven Spencer is the co-founder of SMB Capital … Read More