Archive for January 2014

SMB Automated Systems Webinar (Part One of Five—Video on Demand)

Jan 31st, 2014 | By | Category: Systems Trading
This is the first of five videos from a recent webinar for SMB Systems. To receive notification when the remaining four videos are released, please sign up for the free SMB Systems email updates. No relevant positions Read more [...]

Trading: Less Fighting, More Fishing

Jan 29th, 2014 | By | Category: General Comments, Marc Principato, SMB Forex
Much of the time when you read about trading, many use metaphors that refer to competition or war. You will often hear phrases like, “the forex arena”, “bulls battling the bears”, “you compete with the best and brightest minds in the world”. This is convenient and filled to the brim with conflict (we love drama just watch the news). What the general perception of market speculation tends to ignore is the passive and perhaps less entertaining side of the trading equation: the waiting game. As newer traders enter the market and begin to “inform” themselves as to the inner workings of their particular instrument, Read more [...]

Traders Ask: Should I Develop Price Targets?

Jan 29th, 2014 | By | Category: General Comments
Hi Mike, I just started the DNA Program. I'm very excited! I hope it can help me with my trading. I've been working hard. I've kept a trading and emotional journal, I've been doing my playbook, with so far nine plays. And I've been disciplined and focused with the selection of the stocks in play and the research on them, and have also followed the seven fundamentals. I'm now flat in my P&L. I know I can do a lot of better. Now I'm struggling with my profit exits. I'm working with trades2hold but it's not working for me. Do you think it's better to start with some profit target? Also, I have three or four stocks Read more [...]

Trades of the Month from the Prop Desk Webinar

Jan 29th, 2014 | By | Category: General Comments, Trading Ideas, Trading Lesson
I will be speaking about "Trades of the Month from the Prop Desk" today at 4:30 pm ET. I will be discussing the following topics:    The Trading Patterns working in 2014    What key market levels we are watching on the prop desk    Trading Patterns broken down in a template that you can co-opt for your trading    How to build a trading PlayBook that builds from your strengths As always, I will stay until all of your questions are answered. Register for this free webinar here Let’s make 2014 your best trading year yet… together. You can be better tomorrow than you Read more [...]

Turn Your Ideas Into Statistics

Jan 29th, 2014 | By | Category: Systems Trading
The trading world is littered with anecdotal evidence of cause and effect from various technical indicators and signals. I cringe when I hear something like the following: "As you can see, last time the 19-week moving average crossed the 52-week moving average, this stock moved 18.5%.” This statement has absolutely nothing to do with anything. It’s an observation of a single occurrence. Even worse, this statement can probably do more harm than good since it has no context or risk management involved. Technical indicators are not a cause. They are a measurement and a tool. You cannot build a house with a single measurement, Read more [...]

A Question on Reading the Tape and Skill Building

Jan 28th, 2014 | By | Category: General Comments
Hi Bella, Hope you are well. I've been going through the foundation course material and have started working on “reading the tape”. Can you give some guidance with following two questions? Thanks. 1.      For a new trader is it better to concentrate on one stock and watch the prints and inside box or is it better to concentrate on more than one stock and get used to handling multiple positions. 2.      Also, can you please advise whether you have specific stock(s) for trainees to work on, i.e with less volume and volatility, which should be used to build a solid foundation in tape reading Read more [...]

Free Webinar: Automated Systems for Discretionary Traders

Jan 27th, 2014 | By | Category: Systems Trading
In this webinar I will explain the three core benefits of using automated systems in your trading, and I will demonstrate how these tools for back testing and analysis can benefit your discretionary trading strategies as well. Even if you have no experience with programming or if you are unfamiliar with automated trading, you can learn automated systems. Months or years of trial and error can be reduced to just a few hours of systematic back testing. I'll show you how in this free webinar this Thursday January 30 at 6:00 PM ET. Register for Thursday's webinar here No relevant positions Read more [...]

Trading with Fear and Anxiety

Jan 26th, 2014 | By | Category: General Comments, Guest Blog, Health and Trading, Options Education, SMB Options, Trader Development, Trading Lesson, Trading Psychology
It’s important to understand the difference between fear and anxiety when we’re trading. Legitimate fear is our friend. Legitimate fear serves a warning to tell us something’s wrong. It’s the signal to be alert , to review our positions and plans. If we find something wrong, we can fix it. If not we let go of it and move on. Anxiety, on the other hand, is our enemy. Anxiety occurs when we imagine bad things happening for no valid reason. Like when we consistently focus on a trade going bad even when there is no legitimate reason to do so. The biggest problem with focusing on a trade going bad is that we, as Read more [...]