Trading Lesson: Explosion After Rest—$TWTR

sspencerGeneral Comments, SMB Video Blogs, Steven Spencer (Steve's) Blogs, Technical Plays, Trading LessonLeave a Comment

Today’s video trade review highlights a few key points for short-term equity trading. One, how to identify important “inflection points” which can be used as the basis for low risk high reward trades; two, when to consider getting back into a position that doesn’t work initially; and three, how to actively manage a position versus taking your hands off the keyboard and letting … Read More

Studying Price Patterns: $APC and $RH

Jake HuskaCollege Students Programs, General Comments, Guest Blog, Reading the Tape1 Comment

***Editor’s note: Jake Huska is a college student working on his trading game. At SMB we believe traders should start working on their trading game early, just like pro athletes. Jake’s posts reflect a better journey toward becoming a pro trader for the college student with a passion for trading.*** As a trader I am more concerned with price patterns … Read More

The Reversal Trade: $TWTR

sspencerGeneral Comments, SMB on TV, SMB Video Blogs, Steven Spencer (Steve's) Blogs, Trading LessonLeave a Comment

The short setup that continues to yield the best results in this Raging Bull market is finding stocks that have run for several days and then looking for a “catalyst” for a change in direction. In our last Two Minute Trade Review, $AAPL had a news catalyst that created a short term top (currently about $20 lower). In this example I was … Read More

The PlayBook Checkup ($TRLA Strong Uptrend)

BellaGeneral Comments, Mike Bellafiore's (Bella's) Blogs, One Good Trade, Reading the Tape, SMB Video BlogsLeave a Comment

Below is our third edition of The PlayBook Checkup with Bella, author of One Good Trade and The PlayBook. During these sessions a new trader from our desk will have a PlayBook trade they archived reviewed by Bella. Attendance is free for SMBU Tools subscribers, who can also ask questions during the event. Watch this review of a Strong Uptrend in $TRLA. Highlights: a) The … Read More

What is Your Idea of Back Testing? Part II

Andrew FaldeSystems TradingLeave a Comment

Yesterday we looked at some examples of how a trader could use a handful of recent examples to make trading decisions. The hypothetical scenario played out quite terribly. Although fictional, it’s a thought process that I see happen each day by traders around the world. Here is an alternative way to consider strategy and statistical trading when trading something like … Read More

What is Your Idea of Back Testing?

Andrew FaldeSystems Trading4 Comments

Trade decisions are often based on what a trader observes on the chart. The thought process often starts with something like this: “The last time this happened ABC moved 5%” “Last year at this time the market stayed in a 2% range” “If I had bought the last three breakouts, then I would be up $5k right now!” “The MACD … Read More