Understanding how to identify support and resistance areas and execute trades at these prices is a prerequisite to become a successful day trader. When I reflect back on the dozens of people we have trained over the years I can’t recall a single trader who made it to consistent profitability who didn’t have a few plays in their playbook that … Read More
Bella Talks about his First Steps in Trading
Wednesday June 22nd, 2011 Recently featured in StockTwit’s highly anticpated book The Stocktwits Edge, Mike discusses his very first days as a novice trader: “When I first started trading in the late 1990’s, you sat behind an experienced trader for five days. As we chuckle remembering, you learned through osmosis. You asked questions when they appeared to have time, which … Read More
O Options Trader, Know Thy Vehicle
In yesterday’s Options Tribe meeting, tribe member Craig Wassenberg made an excellent presentation of his expiration Friday “pinning” trades. (For those of you who aren’t familiar with the term, a pinning trade is a trade that takes advantage of the tendency of certain stocks that become anchored to a particular options strike price on options expiration day.) It was an outstanding … Read More
Trading Thought of the Day – June 22, 2011
Trading confidence is resiliency in the face of disappointment. – Dr. Andrew Menaker
Man v Machine—(Spencer v SMB Algo)
SMB has been working on building out a systems trading desk for about a year. At the heart of this effort is a series of algorithms that detect changes in momentum and trend. From these algos we have developed various strategies. One of the cool byproducts of this process will be the creation of some pretty awesome tools to enhance … Read More
Trading Thought of the day – June 21, 2011
Trading is looking into the mirror on steroids. – Dr. Andrew Menaker
PNC – SMB Radar Trade
Without much going on with earnings plays lately, I have been using the Radar a lot more on the open than usual. Typically I wait until my ideas for the open have played out, then I’ll scan through the Radar around 10:45 – 11:00 am. Recently a lot of my ideas don’t really move on the open, so if I … Read More
Expiration Friday: Unveiling the Dramatic Conclusion of Pinning Trades in GOOG and AAPL
On Friday we followed Options Tribe member Craig Wasserman’s thought processes and analysis as expiration Friday proceeded. Craig had been watching AAPL and had become convinced that it was going to pin to 320. He reached this conclusion around 12:30 PM EDT. Craig entered an AAPL 320 iron butterfly trade shortly after making his call on the pinning strike of … Read More