How Our Traders Deal With Random Price Action

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 … Read More

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

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 … Read More

Options Trading as a Career: How to Find it

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 … Read More

Using ATR With Your Trading

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 … Read More

How to Benefit by Understanding Options Trade Probabilities

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 … Read More

This is How You Improve Your Trading Confidence

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 … Read More

An Aspiring Trader’s Email

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 … Read More

How Do I Take the Next Step as a Trader?

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. … Read More