Archive for February 2016

What troubles me about this trader

Feb 29th, 2016 | By | Category: General Comments
I had a conversation with a new trader today and shared my observations of his trading career. Here is what I liked: He has the ability.  He possesses the ability to process information quickly.  He has the ability to make fast decisions.  This was clear during his firm interview and persists after his start. He has an outsized interest in trading.  During mentoring sessions he is an active listener as opposed to passive and wandering.  His AM prep shows chart review.  He knows the key news in depth moving the market and stocks when pressed. He looks at markets uniquely.  He offers new and different ideas for trades. He Read more [...]


Feb 28th, 2016 | By | Category: Steven Spencer (Steve's) Blogs, Trading Lesson
Every day we hold a pre-market meeting where we discuss the best risk to reward trading setups for the day. The trades fall into 3 categories: Stocks with a fresh news catalyst, "Second Day Plays" that had a catalyst the prior day, and finally "technical setups". I've marked up some charts for five trades I made. 4/5 had a fresh news catalyst. The setup I liked the most SPLK was the only one that wasn't profitable for me. Which goes to show you that trading is really just a game of probability and sometimes our biggest winners will come from a trade we think is only so so, and our losers could be from something that looks great! The Read more [...]

A formula for trading success from my TradersExpo presentation

Feb 24th, 2016 | By | Category: General Comments
Yesterday I presented at the TradersExpo in NYC: A study of 5 successful traders from our desk. (Above is a picture of me, chatting with traders after my talk.)  It’s important to study traders who have succeeded and learn from them as a trader and firm.  The successful traders provide inspiration for those striving and best practices to copy. We are one firm, trading one particular style of trading, training one way, in NYC, at one moment in time.  We do not have all the answers.  But when studying our success stories, a formula for trading success was brewed.  And I shared it during my presentation at the TradersExpo.  Read more [...]

DNA Application Deadline Approaching

Feb 21st, 2016 | By | Category: Dna Program
It's Official. The "DNA of Successful Trading" has returned. This experiential training program is designed to accelerate your skill development in 10 short weeks. We, at SMB Capital, have been training pro traders for over a decade. We have a lot on the line when we train new traders. If they don't get it right, we lose real capital. Because of that, our training has to work and it has to work fast. Now, we've turned our training into a program that any trader can take from home. "The DNA of Successful Trading" is a 10-week experience. It's not just a course about trading. This is an experience in building the skills Read more [...]

Things We See At Market Bottoms

Feb 20th, 2016 | By | Category: Steven Spencer (Steve's) Blogs, Trading Lesson
What sort of things should we look for at market bottoms? There is a lot of discussion on things we need to see or not see for a market to put in a bottom. I offer thoughts on a few of these in this video. Steven Spencer is the co-founder of SMB Capital and SMB University which provides trading education in stocks, options, forex and futures. He has traded professionally for 19 years. His email address is: [email protected] no relevant positions Read more [...]

Andrew’s Strategy Set Theory

Feb 19th, 2016 | By | Category: Trading Theory

In this video Andrew Falde looks at combining diversified strategies in different asset classes to create a portfolio equity curve that is reliable and smooth. This strategy set will be an on-going update.

Download the White Paper HERE

* no relevant positions

A day in the life of a professional trader

Feb 19th, 2016 | By | Category: General Comments
Yesterday our education division, SMBU, held a webinar: A day in the life of a trader.  The purpose was to share best practices for traders to turn into habit so they trade better. If traders do all the things necessary to improve, then they can improve.  As I give this presentation, I have an internal conversation with myself. I really hope those listening understand how important it is to be doing all of these things daily. So many underperforming traders think trading success is just finding trades with edge.  They just want to push the buttons when those trades visit.  That is part of it.  In fact, that is a Read more [...]

Die Hard starts winning again

Feb 18th, 2016 | By | Category: General Comments
Die Hard is a senior trader who makes a ton of PnL.  Unfortunately for him and our firm, he also loses a ton of PnL.  This is actually a good problem to have for the trader willing to review and work.  Many experienced traders aren’t willing to journal and review and adapt.  They want to just keep hitting the buttons and see things improve.  They also inevitable have substantial bills to pay and focus on making money again quickly.  “The definition of insanity is doing the same thing over and over and expecting a different result.” -EinsteinThe problem is this cannot be their focus.  They need to take a few steps back Read more [...]