Some Answers on Risk/Reward, Stock Selection, and Time Frame

sspencerDna Program, Steven Spencer (Steve's) Blogs, Trader Development

Hey Mr. Spencer. I was a participant in the SMB-U webinar on Tuesday morning and I have some clarifying questions I hope you could answer. 1. You discussed the importance of only trading securities with 1/5 risk reward. I understand the concept, but I’m not sure I understand how those levels are quantified. What I thought was being said was … Read More

Trade Review–WMT HD SPY

sspencerGeneral Comments, Steven Spencer (Steve's) Blogs

The top In Play names this morning: WMT was my focus as the lowering of FY19 guidance was potentially a very strong catalyst. Early indications from pre-market trading were many traders were attempting to dump the stock ahead larger selling that would come after the opening bell. You can see my discussion of WMT in the AM Meeting here. With … Read More

Why I Game Plan Every Day

sspencerSteven Spencer (Steve's) Blogs

Every morning when I arrive at SMB’s office in midtown Manhattan I have a pre-market routine. The routine serves two purposes: 1) To get me in the proper frame of mind to attack the markets and 2) Ensure that I’m in the best risk/reward stocks and setups. Here is a brief outline of my pre-market process: Login to trading platform … Read More

SNAP Cracked

sspencerGeneral Comments, Steven Spencer (Steve's) Blogs

SNAP was our #1 In Play stock last Wednesday. Tuesday, after the market closed they reported earnings below expectations and gave weak guidance. The stock was battered dropping from 15 to 12 in after hours trading. But then at 6AM Wednesday it was reported that a Chinese internet company had purchased a large stake. So what initially appeared as a relatively … Read More

Shorting A Garbage Stock

sspencerSteven Spencer (Steve's) Blogs

The market has been on a tear in 2017. On the rare occasion the market has a 1 or 2 percent pull back people are tripping over each other to buy! This environment leads to large runups in what I call “junk stocks”. They are low priced stocks, under $5, that have very small floats. The are easily manipulated because … Read More

The Earnings Fade

sspencerGeneral Comments, Steven Spencer (Steve's) Blogs

Each morning before the market opens we review stocks that have fresh news catalysts. We call these stocks “In Play”. When a stock has what appears to be a positive catalyst and yet is trading lower in the pre-market we take notice. Sometimes a stock with a positive catalyst will be trading lower because it has recently run up prior … Read More

The Market Is Loosening Up

sspencerSteven Spencer (Steve's) Blogs, Trading Lesson

In this video I discuss how the character of the market has recently changed and how short term traders can capitalize by trading market ETFs such as SPY and futures contracts. no relevant positions Find out how you can get these ideas each morning and listen to our desk trade live below