General Comments

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 [...]

Underperformance and Your Beliefs

Jun 20th, 2016 | By | Category: General Comments, market structure, Trading Conversations, Trading Psychology
We covered several interesting topics during our weekly Trading Conversations webinar last Friday. As usual, we covered a wide range of things such as using context, randomness, risk/reward, knowing your market with statistics, and more! Not a bad way to wrap up your trading week with some open trading conversation. One topic we covered in particular stood out to me, and I wanted to share it with you here today. The thought is that not all trading sessions provide equal opportunity. That may sound obvious to you at first, but do you really live by that belief? Do you know what types of environments you outperform in? Do you 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 [...]

AM Meeting Replay 06/15/2016

Jun 15th, 2016 | By | Category: General Comments
Each morning, SMB co-founder, Steve Spencer shares key ideas that the desk is watching for the open. Here is an example of this morning's meeting. To attend this meeting each day, subscribe to one of the packages here   Important Disclosures Read more [...]

Using the Opening Swing to Improve Your Trading

Jun 6th, 2016 | By | Category: General Comments, Intraday Levels, market structure, Technical Plays, Traders Ask, Trading Conversations
Last Friday, during our weekly Trading Conversations webinar, we had a lot of great questions from our community - like we do most weeks! One question was about analyzing stocks right around the open, from the first minute to the first hour or so of trade. Keeping with the live and interactive spirit of Trading Conversations, I asked users to give me a ticker or two and I would display how I analyze them around the open. The group chimed in with  $BABA and $CIEN. The concept I taught was one of quickly framing the intraday context of a stock with a tool called the “Opening Swing”. Let’s jump into the details. I define 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 [...]