A tight wedge pattern for Stocks In Play is favorite trading strategy newly stressed on our proprietary trading desk. Two chart examples of this trading pattern were seen just yesterday with ATI: and CSX: I prefer when these wedge patterns appear in a Stock In Play- something with a news catalyst behind it. Breakouts from these wedge patterns work best … Read More
Three Opening Trades–Review BABA MMM VZ
Yesterday, I made the below three trades on the Open based on our morning game plan and strategies we teach on the prop desk. It is important to spend time reviewing your trades each day to determine if you followed your trading plan and identify possible improvements on execution. BABA (win)—good #s. With large recent runup no great setup but expect … Read More
See the hypos!
I’m grinning from ear to ear today. One of my mentees was tasked yesterday to begin preparing premarket “hypos” each morning. It’s just what it sounds like – a few hypotheses for how the day might unfold, therefore providing a roadmap for the day with key inflection points and potential targets. Here’s a screenshot of his premarket journal post in … Read More
Transitioning from a Floundering Retail Trader to a Profitable Pro Trader
SMB’s main business is a prop trading desk in NYC. We partner with The Kershner Trading Group, who offers the best technology suite in our space and massive buying power, to run this business. Historically, even before Wall Street Warriors and One Good Trade and The PlayBook, SMB’s competitive advantage has been training traders from new to consistently profitably and … Read More
Competition at a prop firm fuels increased PnL
People often ask ne the value of trading at a prop firm. And there are many value adds that a prop firm brings to a trader, but I want to focus on one powerful performance driver. Competition! When SMB first formed a JV with the Kershner Trading Group our younger traders were in awe at the PnL numbers of the … Read More
Trading Binary Events
In this video Seth Freudberg discusses how to trade options around binary events like US Elections, Brexit, and Fed announcements. He looks at the thought process professional traders take around these events.
What would you tell your younger trader self?
As I write, I am headed to Austin, Texas to train the newest class for our partners at The Kershner Trading Group. We train the new traders down there as a part of our JV (joint venture) with KTG. I will be training these new traders using The SMB Foundation, Part I of three parts of our training. Today in … Read More
SMBU’s Options Tribe Webinar: Kerry Given of Parkwood Capital: The Ubiquitous Diagonal Spread
This week Kerry Given returns to the Options Tribe the use of the diagonal spread. The diagonal spread is a basic options strategy, but it is versatile and may be used in several different market situations. In this webinar, Kerry Given, a/kl/a Dr. Duke, will discuss the basic aspects of the spread, the pros and cons of strike selection, and ongoing management of the trade. Several examples of diagonal spreads will be reviewed to illustrate the principles of this trade.