The correlation of the $RUT to the $SPX and $DIA has recently taken a nosedive. Correlation is a way to see how synchronized two markets are moving. In the chart below, you can see that the correlation indicator on $RUT vs. $DIA has moved to slightly below 0.00; signaling a low correlation. A zero correlation represents randomness. A correlation closer … Read More
Broken Wing Butterfly Trade Example on LNKD
For decades, expert options traders have been relying on a variation of the ever popular butterfly trade to enhance their monthly income and allow them to safely include a directional bias to their trading. The Broken Wing Butterfly (BWB) is a more advanced trade, not because it is difficult to understand – but because there are more nuances that require … Read More
Video: How to Short A High Flying Stock
This is one of the videos from our recent series on “How to Be Wrong and Still Book Profits”. Calling tops is generally frowned upon. But this strategy quite possibly may be the safest way to take a counter trend position. No relevant positions. Hypothetical trades are simulated using historic market data. Option Risk Disclosure.
How Do I Overcome Anxiety of Losing Money Trading Live?
In our SMBU Daily Video, learn about transitioning from simulated trading to live trading. In this video from Mike Bellafiore, you will learn: Best practices on your transition from sim to live trading The proper mindset to have How to find trades you have edge in How to get better everyday as a trader When to bump your trading size up … Read More
Ask Anything: A Question From China
In our SMBU Daily Video, Mike Bellafiore answers a question from an aspiring college student trading in China. In this video from Mike Bellafiore, you will learn: How aspiring traders abroad can improve their trading through SMB How traders abroad can join SMB’s college trading program The change in Chinese markets spurring demand for short term trading We hope this video … Read More
Do We Really Need Rules?
At SMBU we believe those with a passion for trading ought to start trading in college. We created the SMB College Training Program run by Iceman from The PlayBook for this very reason. Jake is a passionate college trader trying to create a track record while in school to land a spot on a prop trading desk. He will write a weekly blog about … Read More
Mindset Hacks: Adopt the Mindset of a Champion
This is the final blog post in a 3 part series from Bruce Bower on Peak Performance. Part 1 was on consistency and Part 2 was on making better decisions. When we did a survey of the top three topics that people wanted covered, I was surprised by the third place winner: “Mindset Hacks: Adopt the Mindset of a Champion”’. On the other … Read More
Jake’s Trade Review: $RAX
*****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.***** I mentioned on StockTwits last week that I thought “Buying … Read More