Archive for 2015

Damn right we talkin about practice!

Dec 31st, 2015 | By | Category: General Comments
I had an informative phone chat with a counterpart of mine at a large international prop firm.  They house thousands of traders globally.  They, like us, back all of their traders.  They, like us, have their own proprietary trading technology that only firm traders can use.  They, like us, trade many different products. He, like me, trains all of the new traders the firm hires.  He said something during our call that deserves a spotlight.This global proprietary trading firm does not allow their traders to trade live until they show consistency on a trading simulator.You might call this proof of concept.You Read more [...]

Questions to ask yourself after a trading loss

Dec 30th, 2015 | By | Category: General Comments
Yesterday I was trading a stock with a negative news catalyst that was below an important longer term technical support level and intraday VWAP, got short, and took a loss.  I would make the trade again.After taking a loss consider whether you would take the trade again.  Here are the questions I asked myself:1) Did I have an edge with this trade?2) Was the trade in my PlayBook?3) Was my stop too tight?4) Was my stop too loose?6) Should I have lightened up in the position since it was not working right away?6) Was I too big in the trade?7) Should I have been bigger?8) Why didn’t this trade work?9) Was there something Read more [...]

SMBU’s Options Tribe Webinar: Terry Liberman of Your Trading Business – The Structure that Guides Your Trading Performance

Dec 30th, 2015 | By | Category: Options Education
This week Terry Liberman of appears for the first time on the Options Tribe to discuss the concept of a trading as a business, the elements of that business and the trader’s role in that business. We are looking forward to Terry’s debut on the Options Tribe. Read more [...]

The unique trader

Dec 29th, 2015 | By | Category: General Comments
We as a firm were studying our top five traders this week.  Each of them trade a very different style.  Said another way, each of them is unique.One is a scalper.Another trades momentum.Another is an inefficiency trader.Another is an arbitrage trader.Still another trades low floats.What is more interesting is that each of them trades a unique style for these different strategies.There are many different ways to scalp successfully.There are many different ways to attack the markets as an inefficiency trader.I was on the phone with an arbitrage trader yesterday who described how he built his trading career that is completely Read more [...]

This is your trading business

Dec 28th, 2015 | By | Category: General Comments
We teach a class, SMB DNA, and a student asked this question about the chart above from this class: As you can see from the chart, after price broke above 238.40 and traded above it, price tested and rebounded from the level 4 times. It seems to me that this suggests the level is significant intraday as well. The 3rd and 4th time could have been good locations for entry with minimal risk, since we will be buying support in a range. What are your thoughts on this? Or is there a particular reason why your trader decided to not trade the support play? Essentially the student was saying: You guys are teaching X but can I trade Read more [...]

Buying A Market Pull Back–Part II

Dec 27th, 2015 | By | Category: General Comments, Steven Spencer (Steve's) Blogs, Trading Lesson
In Part I I discussed how I put on the breaks on a planned buy in the SPY on 12/11 when price action lowered the probability of a market bounce. This put me in a much better position to play for a bounce on Monday December 14th. Here is a screenshot of my pre-market game plan where I share my top trading ideas for the day. When the market has been hammered for a few days our #1 focus is on trading the market via ETFs such as SPY, IWM, VXX etc. I took long trades in SPY and IWM in the areas mentioned in the game plan. And added to a VXX short position around 24. The levels that I shared were based on prior areas of support/resistance Read more [...]

SMBU’s Options Tribe Webinar: Tony Sizemore of The 5% Solution: Protecting Against Large Moves in the Market

Dec 23rd, 2015 | By | Category: Options Education
This week, Tony Sizemore of will be returning to the Options Tribe to discuss an approach to protecting options income trades from large market moves as may be coming in the New Year if the market should become more volatile in 2016 Read more [...]

Not Losing is Winning Too

Dec 23rd, 2015 | By | Category: Free Daily Trading Video, General Comments
In our SMBU Daily Video, Mike Bellafiore shares an anecdote where he won by not losing. Developing traders often want to win and win everyday. Mike explains how you can win some trading sessions by not losing. We hope this video helps you improve your trading skills. Trade Well   - SMBU Team *no relevant positions Read more [...]