Wandering Off The Path

sspencerSteven Spencer (Steve's) Blogs, Trading Lesson

(May 25th 2016) I had a very disappointing day. I Lost money in trades that weren’t part of my pre-market game plan. And I Didn’t make money in the trades I outlined in our AM Meeting. When the day is over and I review my work I’m primarily measuring my results against how I executed on the opportunities that were identified prior … Read More

Milking an Options Trade

smbcapitalFree Daily Trading Video

In this video, Seth Freudberg talks about the techniques behind milking a trade. Sometimes it’s obvious that an options trade has potential for greater than it’s normal profit target. This video provides a technique for taking advantage of that trading situation. A conservative two standard deviation move metric is used to make decisions within this technique.   *no relevant positions

A test of conscience at a trading firm

BellaGeneral Comments

Hi Mike, I was part of the first edition of SMB DNA and I am a consistently profitable trader now. I just read your article about the low float reversal trade. It is also a favorite trade of mine. The difficulty I sometimes have with these plays is to get borrows to short the stock. (I have one IB account … Read More

A favorite trade of active successful traders

BellaGeneral Comments

The Low Float Reversal Trade is a favorite of the active trading community.  It is a favorite of the best retail active traders.  It is a favorite of many large proprietary firm traders.  Here’s why: Low Float stocks are not as competitive as other stocks, and thus easier to trade. When they reverse, the downmove is substantial and fast, with … Read More

A note from the prop desk

BellaGeneral Comments

This African Proverb above presently sits on our whiteboard, just outside the trading bullpen, on our trading desk.  It encapsulates the advantage of trading at a proprietary trading firm, and helps us raise questions about what we want to be as a trader. Let me offer five examples from the desk this week to illustrate this point. 1. Trader A, … Read More