Trader Development has started for our newest class of traders. After they complete the SMB Foundation, they trade live and take Trader Development. We are making a special effort with this class to keep things simple.
If you were teaching someone to play basketball would you teach them first how to make turnaround 3 point shots? No you would have them work on layups and 15 foot jump shots. The same should be true with trading for the new and developing trader.
In Trader Development we start with The Fundamentals Trend Trade. We search for stocks who have announced significantly different fundamentals and look for setups to trend trade them. Today that meant $SSYS (raised guidance for the full year), $THOR (lowered guidance for the full year). Specifically that meant getting long $SSYS on the open and getting short $THOR.
Traders know which stocks to trade.
Traders know which direction to trade the stock.
Traders just have to search for entries where they can control their risk.
Traders then study these trades after markets close.
Compare this to the befuddled new trader. What stocks should I trade? Should I trade this long or short? What is the trade I am making? That is a great deal of confusion to counter while trying to make good trades in the lightening fast real-time. And what do they study after the close? How confused they were during the trading session?
Think about making your trading easier.
*See more examples of making your trading easier from SMB Partner, Steve Spencer below.
Related Posts:
So Simple Yet Missed By So Many
“You can be better tomorrow than you are today!”
Mike Bellafiore is the Co-Founder of SMB Capital and SMBU, which provides trading education in stocks, options, forex and futures. Bella is the author of One Good Trade and The PlayBook. He welcomes your trading questions at [email protected].
no relevant positions
3 Comments on “Trading Made Easier- $SSYS $THOR”
Was watching both of these stocks. SSYS pretty tough didn’t see anything where i could have gotten long on that(maybe needed to focus more on it). Saw it just go up and up basically during morning session. THOR actually made a trade on it but it was down a bunch it could have squeezed me after i got short but that is the risk. I’ll take simple trades any day levels that hold clean and not whip around prices.
There is definitely confusion at times. In SALE for example i thought when it lifted a certain price it would have some follow through but it just wasn’t there then i had to act quick and go short instead. Tricky trade. I guess looking back the fundies was bad and it was down for the day so i guess leaning on short side would have been had better odds.
Good job here thinking through these opportunities Hoa. The post was mostly about understanding that changing fundamentals offer excellent trend trades. Entry and exit is a blog for another day. One step at a time. Thxs for sharing!