From the prop desk- A woman’s perspective

Hi Bella, I finished your book and it was so wonderful and inspiring. As a female trader (back in the game after a year and a half away, used to trade on a prop desk), I loved that you addressed the issue of women in trading, you sound like a great guy to work for. I would like to share … Read More

Markets Change And So Must I

I received the following thoughtful email from a reader and former SMB student the other day: Steve, From your recent email: /* Simple chart set ups are just opportunities for you to consider a trade.  They are not a signal to just make a trade.  Skill is needed to determine when an excellent risk/reward is present.  Skill is needed to … Read More

Tim Bourquin of chats with John Locke on the Bearish Butterfly Trade

Our friend Tim Bourquin of interviewed John Locke last week on his bearish butterfly trade. In this interview, John and Tim discuss how the bearish butterfly trade evolved, John’s personal experiences trading this strategy and why it fits his highly active lifestyle so well. To hear the full interview now, click here Seth Freudberg Director, SMB Options Training Program … Read More

A Tape Trade

One of the questions I receive most often is regarding trades based strictly on the tape. These occur far less frequently than in years past because of the masking of buyers/sellers by the HFTs but they still do occur from time to time. This morning I was trading AMLN on the Open as it was In Play due to an … Read More

The Lens Matters (2)

Last week I wrote a column talking about how I had moved towards using 15 minute charts more often intraday to keep me focused on a stock’s most relevant trend. I still use lower time frames and the tape to identify the best entries but the higher time frame view will inform whether I am short or long. I thought … Read More

The Language of the Successful Trader

Trader A has overperformed since his start at SMB relative to his experience and peers. Trader B has underperformed relative to his experience with us. Trader A went to a middle of the road school. Trader B has a very impressive educational background. Both love trading. Both are guys you build a firm around. So what separates the two? Their … Read More

An Argument for Why Not Trading Much Makes No Sense

So I work with a trader who started very well. I was very happy with his progress. He was consistent with his results. Steve frequently would remark at his over-performance given his experience. And then recently he has not traded well.  So much so that yesterday I wrote him this email: Hey, what is going on w u? Something bothering … Read More