General Comments

You cannot do this and be a successful trader

Sep 27th, 2016 | By | Category: General Comments
Last Friday as I was walking off our trading floor, a beaming SMBU student yelped at me, "Bella I could hug you after today."  He was very pleased with the progress he had made as a trader. Fast forward to today and that same trader caught me hitting the elevator for my walk home.  I asked him how trading went for him today. He said, "Bella as good as I did last Friday, I did as poorly today.  I just did not have the discipline to enter my trades at the price that I wanted." I am going to write something now, for which you must follow no matter what product or time frame you trade. You cannot become a successful Read more [...]


Some questions from a European trader learning US markets

Sep 26th, 2016 | By | Category: General Comments
One of our SMBU students visited our desk in NYC from Sweden today. Merritt, from SMBU Trading Conversations on Friday 1:30PM EST, joined us for lunch, as did this trader's dad. This European trader is a graduate of SMB DNA and The Winning Trader and working on his game, after work hours from Europe. There were two issues that arose during lunch that merit discussion: 1) What trades do I take with a limited ability to watch markets? 2) How do I settle on the best stocks to trade during Earnings Season? What trades do I take with a limited ability to watch markets? For this trader I like: a) Changing Fundamentals Read more [...]


How Goldman Sachs & JPM Morgan Created A Good Short Opportunity in $SRPT

Sep 24th, 2016 | By | Category: General Comments, Steven Spencer (Steve's) Blogs, Trading Ideas, Trading Lesson
Our #1 trading idea for Friday was SRPT. It sold $300 million of shares in a secondary offering via Goldman Sachs and JP Morgan. Normally, biotech secondaries are excellent long set ups. The prior week I had been long AERI following its secondary offering and it traded 30%+ higher in a few days. But this time was different. I discussed why SRPT was likely a good short trade candidate. Why was this time different? Watch our AM Meeting below. Free Trial info HERE. Below how SRPT traded Friday after the market opened... Steven Spencer is the co-founder of SMB Capital and SMB University which provides Read more [...]


Trade Review–Shorting A Stock After Earnings $RHT

Sep 23rd, 2016 | By | Category: General Comments, Steven Spencer (Steve's) Blogs, Trading Ideas, Trading Lesson
In this video I walk you through my thought process in developing a plan to short Red Hat following its earnings report. Each morning we develop trading plans for Stocks In Play. For more info sign up for a free trial which includes all of our trading tools and live position updates. 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 20 years. His email address is: [email protected] Steven Spencer is currently short RHT Read more [...]


Why I didn’t trade today

Sep 23rd, 2016 | By | Category: General Comments
I didn't trade this morning.  I had ever intention to do so when I left the office last night.  I like the opportunity in FB TWTR SRPT SPY IWM for today's trading session.  So this was not a decision of a lack of trading opportunity.  I, personally, was not in an optimal state to trade.  And therefor, I benched myself. First, for those of you who have children, you might empathize with this next anecdote.  Three times last night, while in a dead sleep, my son approached my bed, leaned directly into my right ear and said, "DAD.........".  There were different iterations of what followed after DAD!, but each awoke me Read more [...]


What this new trader learned on Day 1 (166 lessons)

Sep 20th, 2016 | By | Category: General Comments
Our new class started part I of their training this week, with the SMB Foundation. Some say, "The only way to learn how to trade is trade." Here is some evidence contrary to that position. One trainee with past trading experience sent me his notes, without solicitation, as to what he learned on Day 1 of our training program.  He participated in live classroom instruction, demo trading, interaction with traders on the desk, the archived Foundation training course, and access to our trading tools.  Here is what he learned: Get better every day Respect the markets Ask questions Only Read more [...]


Close The Gap!

Sep 20th, 2016 | By | Category: Futures, General Comments, market structure, Trading Conversations, Trading Lesson, Trading Psychology
              I work with a lot of traders trying to "make the turn" - that is the turn to consistently profitable. Among the plethora of issues preventing the average trader from being consistent, one has come up rather often recently. The gap. The gap between what you see as great opportunity at the end of the day, in hindsight; and what you were able to see at the hard right edge, in real time. The more we can close that gap, the better traders we will be. I'd like to highlight a few key solutions you can apply immediately to help you get there. (Spoiler alert: Read more [...]


Building your trading team

Sep 18th, 2016 | By | Category: General Comments
Performance isn't exclusively about skill and strategy.  In fact, one top coach leaves all of this out of his top three keys to building a team. This is interesting to us as traders, as some of us trade in teams or something like teams, for improved performance. Team Trading is part III of our training for new traders on our desk.  Team trading is present at Hedge Funds and institutional desks but uncommon at prop firms.  Most prop firms employ the mentor/coach infrastructure, with some more successful than others. I am not here to argue which is better, just that we have settled on Team Trading, with great appreciation Read more [...]