All entries by this author

SMB in Singapore for InvestFair 2016

Jul 7th, 2016 | By | Category: General Comments
Mike Bellafiore will be a Keynote Speaker in Singapore for Invest-Fair 2016. INVEST Fair is ShareInvestor’s annual flagship event in Singapore for investors and traders. Jointly collaborated with The Business Times, Singapore's largest business publication, INVEST Fair is an unrivaled event- "the LARGEST Investment/Trading Event in Singapore!" Here is an ad from The Sunday Times (Singapore): If you are a trader/investor in Singapore, we hope to see you at the event. *no relevant positions Read more [...]

Why did LVS trade through 44 if that was support?

Jun 21st, 2016 | By | Category: General Comments
LVS hit our radar for a Spencer (my trading partner) 2nd Day play.  There was not much a news catalyst in LVS, but yesterday it traded a higher RVOL, finished near the bottom of its range, and traded significantly weaker than the market.  We walk onto our trading floor today wondering if there will be follow through or a bounce from support at 44. Where is support?  We look to our longer term technicals for this answer. On a Daily chart, we find 44 as a support level in LVS.  We think: could it drop on the open to there and bounce off of support?  We overlay a trading pattern from our PlayBook for such a trade.  We do Read more [...]

How do I use previous support and resistance levels?

Jun 20th, 2016 | By | Category: General Comments
Hi Bella, I have been learning a ton from One Good Trade, The Playbook, and all the online educational content you have. Thank you! When you are analyzing a stock “in Play” and looking at previous support/resistance levels, how much weight do you give them going forward with that days trading? After all, we would be trading this stock in play BECAUSE it is acting unusual, which might make those prior levels less meaningful on this day. How should I think about this when analyzing a stock in play? Thanks so much for being one of the TRUE educators in this space! Best, Ben @MikeBellafiore Whenever we make Read more [...]

Must I time my trades properly?

May 30th, 2016 | By | Category: General Comments
Mike, I just joined SMBU and I'm half-way though all the lectures and I like it a lot. Bluntly,  I'm a piker.  I've failed numerous attempts at trading and blown through a lot of money.... I'm trying to apply your best set up/idea concept to his strategy>  the best example can be the BABA trade on 5/25/16.  SEC investigation into BABA earnings/revenue, but the technical setup was that it closed on the previous day's high  and gapped below the previous bar low.   (Trading educator elsewhere) calls  that a kicker pattern because all the longs are trapped and have to exit and with SEC investigation, as you know, Read more [...]

The trade that propelled one trader to start winning

May 30th, 2016 | By | Category: General Comments
I have been there. Failing and looking for a way to break out as a trader. I first did back in the late 90′s with one setup- The Relative Strength Trade. Our newest High Performing Trader was there and found a way to break out as a trader. He trades almost exclusively one setup. That one setup has propelled his trading career. We call it the High Beta Technical Consolidation Trade. This trader did not attend an Ivy League School. This trader did not play D1 athletics. This trader’s dad does not play golf with the head of GS. He is not a genius coder. He has found a trade with edge that works for him. He Read more [...]

A test of conscience at a trading firm

May 25th, 2016 | By | Category: General Comments
Hi Mike, I was part of the first edition of SMB DNA and I am a consistently profitable trader now. I just read your article about the low float reversal trade. It is also a favorite trade of mine. The difficulty I sometimes have with these plays is to get borrows to short the stock. (I have one IB account and one ETC clearing account). I couldn't short MGT the last few days because it was restricted at ETC clearing and CLRB had huge costs to locate at Quantex. How is this situation for the traders at your prop firm? Are you able to short pretty much everything or do you also face sometimes the problem of lack of borrows? Best Read more [...]

A favorite trade of active successful traders

May 23rd, 2016 | By | Category: General Comments
The Low Float Reversal Trade is a favorite of the active trading community.  It is a favorite of the best retail active traders.  It is a favorite of many large proprietary firm traders.  Here's why: Low Float stocks are not as competitive as other stocks, and thus easier to trade. When they reverse, the downmove is substantial and fast, with profits realized immediately. When they reverse, you can sit and hold a core position, making less trade decisions. Very little capital is necessary to take a very large position. The risk/reward is enormous. What is a Low Float Reversal Trade? a) Cheap stock, usually Read more [...]

A note from the prop desk

May 20th, 2016 | By | Category: General Comments
This African Proverb above presently sits on our whiteboard, just outside the trading bullpen, on our trading desk.  It encapsulates the advantage of trading at a proprietary trading firm, and helps us raise questions about what we want to be as a trader. Let me offer five examples from the desk this week to illustrate this point. 1. Trader A, Young Gun, finds CLRB, a low float opportunity that fits his PlayBook.  He captures 8k of profit in the opportunity.  Trader B, Heavy Hitter, hears Young Gun chirping about this name, and finds a setup that fits his trading eye.  Heavy Hitter banks 20k (before giving back some), Read more [...]