Archive for August 2013

How Our Traders Deal With Random Price Action

Aug 30th, 2013 | By | Category: General Comments, Marc Principato, SMB Forex
Prices are random, especially on smaller time frames. So what to do? Subscribe: Help me write my book: Training Info: My analysis on Twitter: Webinar and Trade Review Archive: -- Marc Principato, CMT, Risk Disclaimer *No Relevant Positions SMB FOREX Trade on your own schedule Learn SMB′s Unique Strategy Trade Confidently in 6 Weeks Click here for a free trial of our chatroom Read more [...]

Trading an Index Option vs a Stock Option: Assessing the Risk

Aug 30th, 2013 | By | Category: General Comments
How do we choose the perfect security for trading options? The evolution of options trading strategies will continue to expand but the one thing that will never change is the relationship between volatility and risk when assessing your next options trade. One of the considerations when trading options is what underlying vehicle you should trade. Should you trade options derived from an index like the S&P 500, Dow, Russell 2000 or OEX? What about using ETFs or high-priced equities such as Apple, IBM, or Google? As usual the answer is not always so simple. There are pros and cons to each, so as an options trader it is important Read more [...]

Options Trading as a Career: How to Find it

Aug 29th, 2013 | By | Category: General Comments
What does it take to become a successful options trader? This is a very complex question, but we will try to give a few brief thoughts on the subject. Most people believe that to be a successful options trader, it simply requires learning one of the many options trading strategies that provide the trader an edge over the market over time. Does this mean that taking a $5,000 weekend seminar or weekend course will arm you with all that you need to start making money the day after the course is over? Hardly. New options traders often fail to see what is truly required after you learn a particular strategy. It’s not as simple Read more [...]

Using ATR With Your Trading

Aug 29th, 2013 | By | Category: General Comments
Hi Mike, I just spent the entire weekend finishing reading The Playbook and I just wanted to grovel at your feet a little bit. I loved it. OGT was my favorite trading book ever, and this book is an absolutely perfect companion. As a lonely trader doing it on my own, every time I read one of your books I just about dissolve with jealousy at the resources your traders have at SMB—the support and accountability from you and Steve, and the opportunity to draw on other brilliant traders whenever they sounds like heaven. If there is ever an opportunity for me to join you, I will move mountains to get myself Read more [...]

How to Benefit by Understanding Options Trade Probabilities

Aug 28th, 2013 | By | Category: General Comments
Many who are new to options trading get excited when they hear about options trades that are “high probability”! What they think is that these option trades usually win and earn money. Thus a “low probability” trade must mean the chances of winning are lower. But is it really that simple? And why would anyone enter a low-probability trade if there is a high-probability trade available? The answers to these options trading questions must be understood before you initiate your next options trade. In a previous trader education article, we discussed what options probabilities are based on, namely, if you do absolutely nothing Read more [...]

This is How You Improve Your Trading Confidence

Aug 28th, 2013 | By | Category: General Comments
Confidence is a skill that you can improve. Yes, you can improve your confidence as a trader. How? Below is an exercise to improve your confidence. EXERCISE: Take a piece of paper and split it into four columns. The first column is titled “Hot Button Situation.” In this column list situations that you believe are your “hot button” issues. The second column is titled “Hot Button Cause.” For this one write why your “hot button” issues are “hot button” issues for you. For example, have you been injured in that particular situation before or do you just perceive your ability to be below standard? The third Read more [...]

An Aspiring Trader’s Email

Aug 28th, 2013 | By | Category: Marc Principato, SMB Forex
At SMB we get a lot of emails from traders of all levels.  Much of the time they are from aspiring traders who are very passionate about the markets and their work.  And all of us here make every effort to respond and provide some insight into the world of professional trading.  So in this article, I am going to feature an email from an aspiring trader from Australia.  It is clear she is very passionate about trading and I hope my answers offer some valuable insight to her and anyone else who can relate. Also keep in mind, you can gain valuable insight from the videos that I publish here and on my own channel which you can Read more [...]

How Do I Take the Next Step as a Trader?

Aug 28th, 2013 | By | Category: General Comments
Mike, I know you've heard it many times. It's like telling a model that they're attractive. 🙂 But, you guys put out some very informational items. Every other day, I listen to "How badly do you want to be successful?" Very inspirational! The one thing I suggest is writing something on the level of knowing when to increase your size. Or knowing when to take the next step as a trader. And this is where I have some difficulties in. I've been trading for almost three years as a spread trader and am ready to take the next level. The question is now how to take the next level? I appreciate your insight! @mikebellafiore I Read more [...]