In the ongoing series “Seven Lessons I’ve Learned”, we come to Lesson 4. We recognize that we are trying to make the best decisions possible and that we some kind of process and discipline to guide our efforts. On the other hand, we need to get the mental game right to achieve true peak performance, just like with any activity … Read More
SMBU’s Options Tribe Webinar: Jared Levy of Profitabletrading.com: The power of vertical spreads in playing directional ideas
December 9, 2014 Today, Jared Levy returns to the Options Tribe to discuss his approach to using vertical options spreads to play his directional viewpoints. SMBU’s Options Tribe is an online community of options traders dedicated to sharing successful options trading ideas with all of our members worldwide. Each Tuesday, SMBU hosts an options webinar — the Options Tribe — … Read More
Trading Analyst Upgrades and Downgrades
On the Open I saw an analyst downgrade trade opportunity. You could hear this on our desk: Me: Why is this AGIO down? Me: Anyone see anything other than the JP Morgan downgrade in $AGIO (Agios Pharmaceuticals)? All I saw on my news wires was this: You could hear more from me on the desk: Me: Anything coming across Bloomberg … Read More
Trade with Distinction in Best Buy
I love to short stocks whose margins are under pressure. This is a news catalyst that can bring new selling and shorting. Margins are how much a company makes on the product they sell. If they make less per item then their core business will become weaker generally. The only way to offset this is with increased volume. But … Read More
The Impact of Dividend Cuts on Stock Trading (Seadrill Case Study)
In the premarket Seadrill, an offshore driller, announced it was suspending its dividend as this headlines shows: This is news of changing fundamentals in a stock that gets my attention. When a company suspends its dividend many shareholders HAVE to sell as that offering no longer fits their investment strategy. Further the suspension of a dividend signals financial weakness in … Read More
SMBU’s Options Tribe Webinar: Noted Author Jeff Augen: Finding Ideal Entry And Exit Points when Trading Options
December 2, 2014 Today’s markets are almost entirely driven by algorithmic trading – a new dynamic that invalidates most technical indicators. The PhaseTrader® indicators were developed to address this problem. They are designed to detect and respond to the activities of program trading systems in a variety of financial markets, and they are currently licensed by hundreds of individual subscribers … Read More
Trader’s Ask: Should I Use a Time Stop in Alibaba?
Hey Bella sorry to bother you again intraday. I’m very close to having having gotten ride of my over trading tenancies/urges and will start pulling the trigger on better trades2hold in the coming days/weeks. BABA though, it formed a support at 112.10 – 12.15ish. When you get long. Two questions. 1.) If you got long at 112.12 do you … Read More
SMB Trading Lessons of the Week of November 23, 2014
Bella discusses an anecdote about a great automated trader who was formerly a failed discretionary trader. In this video Bruce Bower discusses decision making from his visualization series. Latest Blog Posts Hopeville: Where Traders Go To Die There are times when I am required to give a mentoring student some tough love, because it’s important for me to convey, immediately, … Read More