Posts Tagged ‘ trading mentor ’

My Thought Process: $BHP

Feb 21st, 2013 | By | Category: General Comments, Steven Spencer (Steve's) Blogs
BHP was gapping lower and trading very actively in the pre-market. This message was to highlight it would be one of the best stocks to trade on the Open and my bias would be informed on which side of 78.50 it started the day. I initiated a short right on the Open against a 78.36 seller. This was the first interesting thing I noticed on the tape since shorting it on the Open. From a big picture perspective it was below my 78.50 level and consolidating near the Open low so it was clearly a short. I was looking for a catalyst for the next down leg and I found it with the 77.93 buyer. I loaded up when the buyer dropped. Read more [...]


Should Short Term Traders Consider News–Part III

Feb 19th, 2013 | By | Category: General Comments, Steven Spencer (Steve's) Blogs, Trader Development
On Friday I was chatting with a non-SMB prop trader that I trained several years ago. He was long DLTR when the WMT "news" broke around 2:00PM. From the chat messages you can see that we were in agreement that there was a short term "fading" opportunity in the retail names that had been quickly hammered based on a leaked internal email from a WMT employee. Read the exchange and then I will add some more thoughts: 2:12 PM Michael: dltr fell hard me: u didn't have a stop? clearly some news there 2:13 PM Michael: i did just saying me: so probably will make another big move now. 2:14 PM 1.5mln shares in that down move Michael: Read more [...]


Should Short Term Traders Consider Fundamentals–Part II

Feb 11th, 2013 | By | Category: Steven Spencer (Steve's) Blogs, Trading Theory
In Part I of this series I discussed whether understanding the news could help short term traders limit their risk on overnight positions. Today's post discusses whether understanding the news gives a short term trader a possible edge in determining profit targets and when to exit an intraday position. As examples I will use two trades that Sammy, an SMB trader, executed today. The first involved a short right on the Open in GOOG. It was gapping lower on news that the former CEO Eric Schmidt was selling 50% of his position in the company. My analysis of this news from our AM Meeting was that it was a non event from a long term Read more [...]


Should Short Term Traders Consider Fundamentals? Part I

Feb 9th, 2013 | By | Category: General Comments, SMB Fundamentals, Steven Spencer (Steve's) Blogs
I believe the majority of market participants agree over longer time horizons fundamentals will influence the price of a stock. But what about in the short or medium term? Should intra-day traders or swing traders be evaluating fundamental news related to the stocks they are trading? Or should they simply focus on price action in relation to news? I have a lot of thoughts on this topic and rather than spending an entire Saturday trying to sort them out I will give an example of a recent trade I saw a trader place that did not factor in news risk and ended as a large loss (luckily not devastating). The trade was initially an Read more [...]


Forex Road Map

Jan 10th, 2013 | By | Category: General Comments
Marc Principato, CMT records a trade setup as it happens on the S&P 500 CFD instrument. This is an example of how the traders in the SMB Forex and Futures program manage emerging opportunities. It's like having a road map. Can you see the value? Marc is going to demonstrate the advantages using price and volume pattern recognition to formulate high probability trading scenarios that carry manageable risk on his next webinar Forex & Futures Road Map. Click here to register -- Marc Principato, CMT Risk Disclaimer *No Relevant Positions Forex Swing Trader 6 week online program - Learn SMB's unique price Read more [...]


The #NewNormal and $SPX 1680

Jan 6th, 2013 | By | Category: General Comments, Steven Spencer (Steve's) Blogs, Trading Theory
I was on BBC a few days ago to talk about the market's reaction to the "fiscal cliff" legislation. I had hoped to use the opportunity to spend some time clearly outlining a concept I discussed in my final webinar of 2012. The BBC economics reporter prattled on longer than expected so I only had about 60 seconds to outline my market observations, which I have termed the New Normal. The idea is that after four years of above average volatility in the US equities markets we had clearly entered a period of reduced volatility. And with the failure of each successive negative macro headlines failure to increase volatility, but for a few Read more [...]


Should This Trader Make a Comeback?

Jan 5th, 2013 | By | Category: Mike Bellafiore's (Bella's) Blogs
Below is an interesting trading anecdote I received via LinkedIn.  I asked the writer if I could share his trading experience with our community.  He agreed.  The names and places have been changed for compliance reasons and we have no interest in saying anything negative about anyone or any firm on this blog. What I find interesting about his note is: 1) Good traders are not always good teachers. 2) Trading strategies that worked in the past may not going forward. 3) Trading is a tough sport 4) Some catch a bad break and start during difficult market conditions.  One of the first lessons we were taught at my Read more [...]


A Trade to Master- $RIG

Jan 5th, 2013 | By | Category: Mike Bellafiore's (Bella's) Blogs
One of our new trainees from Thailand traded RIG yesterday and sent me a PlayBook on this trade.  This was his Trade Management slide for the trade.  There are some lessons here. 1) Great job being in the best stock yesterday for intraday traders, RIG.  You are only as good as the stocks you trade.  This was a stock with opportunity. 2) The Trend Trend Trade is a powerful trade for the new trader.  This is one of the first patterns you should learn.  First work on taking as much as you can from a basic set up like this before moving to more difficult set ups. 3) I would take issue with some of his stops, but this Read more [...]