Dr. Brett Steenbarger, respected market psychologist, recently wrote on TraderFeed about the importance of Reading the Tape for short-term traders. In his post, he says that “Reading the tape is key to getting in and out at good prices.” And, “For experienced tape readers, knowing prices where large orders have come into and out of the market can also be … Read More
Setting a Goal for the Day
Recently I received this question from Reader Stephen: I am 53 yo guy been trading for 30+ years. I love your videos and your traders that give intraday information, I have a simple question. What is an example of Goal for the day? I have enclosed an example of my monthly goals which I do daily to keep me focused. … Read More
In Search of Consistency
One of the greatest hurdles a new trader faces is that of consistency. Consistency on SMB’s desk is defined as being profitable a minimum of 80 percent of the trading days each month. The majority of our desk achieved this level of consistency in the month of August. This was mainly a result of the opportunities in the leveraged financial … Read More
Generating Trading Ideas for Tomorrow
Into the Close I recognized that one of the stocks I was long was stronger than all the others. That was DNDN, which will now be the first stock I consider to trade as I prepare before the Open tomorrow. Let’s discuss. Into the Close I was long LVS, DRYS, AIG, and DNDN. SPY broke from its tight range and started an upmove … Read More
SMB Training presents the Reading the Tape Program
SMB Training now proudly presents our Reading the Tape training program for new and developing traders. After two months of arduous work we have finally put together an intensive 2 day program available to you for 30 days on our training website. Reading the Tape allows intraday traders to determine the next move in a stock just by examining the … Read More
Reading the Tape with Gman: Longer Term Setups
Gman, head trader at SMB Capital, wrote an excellent article for Wall Street Cheat Sheet about using tape reading skills to enter into and exit out of longer term trades. Gman discusses how learning this important skill helps traders limit their risk on a trade while maximizing profits. You can read the full article here.
Should I be Short or Long?
If a stock has fresh news prior to the market Open it may gap up/down a large amount from the previous day’s closing price. My first instinct as a trader is to be long stocks that gap up on news and short stocks that gap down on news. My experience tells me that the majority of the time there is … Read More
Anticipating The Change
In September and October of 2008 the young traders on our desk put up ridiculous numbers. Their aggressive instincts were rewarded by the unusual level of volatility. But then their aggressive instincts were severely punished in the months that followed. They were slow to adapt to changing market conditions. By December of 2008 it no longer made sense to make … Read More