Understanding the market structure of the day impacts all of your intraday trades. Corey Rosenbloom has done some excellent work on this important trading concept. Dr. Steenbarger has written about its importance. At SMB we talk about the Big Picture before we start our AM meeting. Below is a self-proclaimed rant from a new trainee. We can learn from his monthly analysis … Read More
A Few Spins Of The Wheel Redux
We made a fundamental error in calculating the returns in our last article, and many thanks to one of our readers who was on his toes and caught it. Some of our calculations were based on dollars per trade and others on dollars per share—clearly a case of pineapples and pomegranates, along with doing the calculations much too late at … Read More
Shifting My Bias
I shorted BIG in the late morning today. It gapped down on its earnings release and then proceeded to consolidate below 36.70, which in my view is an important long term support area. My initial short was when a buyer dropped at 36.20. It quickly dropped about 30 cents and then traded right back up to the 36.20s. I shorted … Read More
Trading Passion: Embracing Failure and Discovering Your True Path
Morning Bella, I’ll try to keep this brief because I know you’re extremely busy. I just finished reading “Talent is Overrated” by Geoff Colvin along with “Mindest” by Carol Dewck and was interested to know what drives you and Steve to be successful traders and teachers? And where does your trading passion come from? Where did it start? Colvin talks about … Read More
Traders Ask: How Do I Stop Losing Money?
I get asked this question a lot. Here are my thoughts. There is not one thing to say that would make the difference. There are not a few things I could write that would make the difference. This question ties nicely into a conversation I had just a few minutes ago in my office with a mentee, which I will … Read More
Find stocks “moving away from prices”
In a mentee’s review yesterday he made this interesting point: – I really could have done a better job of taking advantage of the last move into the close.. I was too focused on that SFLY that wasn’t really moving away from prices and didn’t shop around enough for some longs for the close While waiting at the bar for … Read More
Free Options Webinar: SMB’s Options Tribe: Tuesday, December 6, 2011 at 5pm EST: Weekly credit spreads using a trading system
Tuesday December 6, 2011 at 5:00 pm Eastern Standard Time SMB’s Options Tribe is an online community of options traders dedicated to sharing successful options trading ideas with all of our members worldwide. Each week the community will meet online for the primary purpose of watching live presentations made by outstanding veteran options traders and experts in the world of … Read More
Trading Lesson #1: Buying A Strong Stock At Prior Day’s Afternoon Support
New blog format: Short trading lessons with charts for illustration. Trading Lesson #1: Second Day Play–Buying A Strong Stock After It Pulls Back To Prior Afternoon’s Support Area INHX was on our radar yesterday after another fresh news drug catalyst. As you can see from the two charts below INHX is trending higher on multiple time frames. Here is the … Read More