Here is a timeline of my trading thought process starting on April 24th the morning after AAPL reported earnings through April 29th. I want to put this first StockTweet in context. After AAPL released their earnings report trading was halted. AAPL announced a capital plan to return about $100 billion dollars to shareholders via dividends and stock buybacks. They reported … Read More
Using LRC to Create and Hedge Positions in Multiple Markets
The LRC Channel has a twofold purpose. First, you can use it to leg into index credit spreads with higher statistical probability of success. Second, you can use the direction of the LRC (linear regression curve) to trade the trends in individual stocks. Here is a recent example: The center line on $C (Citigroup Inc) indicated a long trend direction … Read More
Starting a Prop Desk
Hi Mike, I have a couple of questions that I would like to ask you. First, what is the success rate of new traders once they go through the SMB program? And second, in your opinion what would be the ideal number to start a trading floor with? I realize you might refer to how much capital is available but … Read More
SMB Capital and Kershner Trading Group: A Powerful Partnership
April 24, 2013, NEW YORK, NY—SMB Capital, a leading proprietary trading desk based in Manhattan, and Kershner Trading Group (Austin, Texas and now New York City), have teamed up to create a joint venture for a new trading office in Midtown Manhattan. The JV offers traders a true trading partner, where the firm provides technology with an edge, large trading … Read More
Free Mentoring Classes with John Locke
Twice a month since September 2012, SMB has been holding John Locke’s group mentoring classes, and now we’ve got a special offer: we’re offering two free sessions for his M3/Bearish Butterfly/Rock Trade group mentoring classes today, May 2 and Thursday, May 16. For those of you who are new to SMB Options, John Locke is an experienced options trader and … Read More
Trade Review: $VRTX
VRTX gapped up over 50% on positive drug news. In this trade review Steven Spencer discusses his basic philosophy on trading very large gaps as well as his executions in VRTX.
Sometimes Being Contrarian Means Betting on the Trend
A dip against the long-term trend offers a high probability setup for the contrarian trader to adjust options positions that haven’t been working and to put on positions that will take advantage of a possible trend resumption. In this most recent example, we can see that the price traded down to the lower band of the LRC Channel. Regardless of … Read More
Forex Trading: Know Your Time Frame
One of the more common mistakes I see new traders make is executing a trade idea that came from a larger time frame analysis, but justifying the entry from a set up appearing on a smaller time frame and expecting it to reach the greater target. It can be very confusing because the smaller time frame charts can offer refined … Read More