A ?4 the Trading Community- How Do I Trade BP Now?

BellaMike Bellafiore's (Bella's) Blogs2 Comments

Dr. Steenbarger helped me recognize one of the improvements we could make at SMB awhile ago. The partners and Senior Traders must be responsible for a great deal of teaching and mentoring. But if traders are not leveraging the talent of all firm members then that firm is not offering the best learning environment. Traders learn from other traders and not just partners and senior traders.

The SMB Blog should not just be everything that Steve or GMan or Adam or I have learned. It should advocate a learning community so much more than just us. We are just four guys with four sets of learning experiences, granted some of us have been trading for a long time. But our daily community is so much larger. In the past I have asked for input from our readers. Today for this new series to our blog we ask for help from our trading community. We ask for your input for the question below…

Hi Mike,
Quick question on BP, my gut tells me this deal could breakdown below the $29.00 low due to the extended period of time it traded between .50 and 1 today(In which, I’d spank it to the short side). But, I think it’s definitely worth a long trade here with a tight stop at 29.25. What are your thoughts?

SMB Asks

How would you trade BP?

2 Comments on “A ?4 the Trading Community- How Do I Trade BP Now?”

  1. BP has continued have intra-day failures (even with index strength) at premarket highs and presented some excellent reward/risk setups. Until that changes, I would be placing offers at previous daily and premarket highs and getting flat on any SPY/DIA strength.

  2. I would wait until BP gave evidence of breaking the downtrend on the daily chart before I would look for a long trade. Yesterday's peak at 30 and failure was a nice short opp. And it was a Trade2Hold as it never broke the trend down. Nice reward if you held overnight too…as it has gapped down about a buck as I write this…

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