SMBU Trade of the Week: FacebookFeb 23rd, 2014 | By Bella | Category: Mike Bellafiore's (Bella's) Blogs, Trade of the Week, Trading Lesson
Mike Bellafiore, author of the “trading classic” One Good Trade and The PlayBook, talks about his SMBU Trade of the Week in $FB. Even though he thought $FB was going to trade lower, when it broke out to the upside, he followed the price action and captured an excellent risk/reward opportunity.
Highlights from this trade:
1) You do not have to predict where a stock is headed to make excellent risk/reward trades.
2) Learn a swing pattern trade that repeats often for short-term traders.
3) Learn an important news catalyst that manifests outsized moves.
4) Review a specific consolidation pattern that is likely to move substantially away from this range.
“You can be better tomorrow than you are today!”