(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
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
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
Is the Market Rigged?
In this video Mike Bellafiore answers a question from a reader who believes the market was rigged against him.
A favorite trade of active successful traders
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
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
How to Trade Earnings Season
In this video Mike Bellafiore discusses 6 keys to trading earnings season.
Stop Calling it Options Income Trading
In this video Seth Freudberg discusses why he has a problem with the term options income trading. Find out why!