How Big Dog sized down to progress

BellaGeneral Comments

 Big Dog started to learn Futures to capitalize on this market with elevated volatility.  He is a fast study.  Big Dog is also an accomplished trader, in the 500k-1m a-year range.  Let me share an anecdote working with him on our desk to improve his sizing. Big Dog noticed something about his stops when he started to size up … Read More

Losing Money On A Trade Is Not The Same As Failing

smbcapitalFree Daily Trading Video, Seth Freudberg's Blogs

In our SMBU Daily Video, Seth Freudberg discusses why losses are inevitable in this kind of market. Options traders struggle in volatile markets like we are experiencing. It’s important to keep a proper perspective in these circumstances–losing on trades is expected–as long as you stayed disciplined through the trading process then you didn’t fail–you simply lost money on a trade. … Read More

Three Ideas to Help You Catch Your Best Trade Ideas

BellaGeneral Comments

@mikebellafiore One thing I do before the open is develop a game plan.  What stocks do I want to trade first?  What prices do I want to enter positions?  This helps a trader to not get overwhelmed when the market opens.  There is all this data flashing buy on multiple screens in nanoseconds.  Sorting out your best stocks and best … Read More

Why this trader got sent home

BellaGeneral Comments

Yesterday we sent home a trader. Why? To cement a small win from him which he can build. The trader is just passing over his Year1 mark into Year2.  This is the year where there are PnL expectations.  At our firm our data suggests most traders experience significant improvement in Year2.  Yesterday he was having one of his best days.  … Read More

How this Bearish Strategy Beat the Index by 288%… Even in a Bull Market

smbcapitalSMB Options

Bearish-Butterfly-John-Locke-SMB-Options-Tribe-Income-Hedge-High-Probability

Please note: Trades discussed below are hypothetical and simulated for educational purposes only. Review the options risk disclosure. The graph below compares the Bearish Butterfly vs. the S&P 500 index. If you had traded the rule-based Bearish Butterfly Strategy for the past 5 years, you could have outperformed the index by 288% — even though the market was bullish during … Read More

Thoughts On Trading A Bear Market–SPY FB NFLX

sspencerSteven Spencer (Steve's) Blogs

In this video I offer some thoughts for how the market is setting up for the second week of February. If you are interested in our process for finding the best trading setups each day join me for a free webinar Monday February 8th at 4:30PM. Steven Spencer is the co-founder of SMB Capital and SMB University which provides trading … Read More