Merritt Black and Andrew Falde hosted the first ever “SMBU Trading Conversations” web event. Learn about the edges that professional traders focus on, why a high win-rate should be your least important trading goal, and some strategic trading ideas that you have never heard before. Enjoy the replay! * no relevant positions
Score one for the profit takers
Trader A stopped me in the hall to OK his large options put buying (bet to the downside). He has more exposure than his risk parameters allow. I ask the length of the trade. He replies, “maybe Monday.” I ask whether that makes sense for him. He thinks about it but responds the longer play is the trade. We agree … Read More
SMBU’s Options Tribe Webinar: John Locke of Lockeinyoursuccess.com: Is my trade broken? How to know when it’s time to modify your trading strategy
This week John Locke returns to the Options Tribe to share his ideas on how to determine if and when it’s time for an options income trader to change or modify an options trading strategy.
Game over
I was chatting with a veteran trading coach about a trader in drawdown. Is this drawdown part of her strategy or is she making it worse? Are you making things worse for your trading with your worst trades? Veteran Trading Coach: I actually love how she fights so much. She never wants to admit defeat in a trade until she … Read More
A Formula for Evaluating and Selecting a Set of Trading Systems
Here are the two main ideas to focus on while you watch this video: – A Small Positive Drift + Diversification = Smooth Returns – Smoothness is not the only goal. We want Smoother AND Steeper returns. Furthermore, I hope these concepts demonstrate that smoother and steeper results can be achieved without taking on excessive leverage. Share your thoughts with … Read More
Adapting to Changing Market Conditions
In our SMBU Daily Video, Steven Spencer discusses the range expansions occurring in today’s market. We take a close look at the ranges that have developed in the $SPY over the past months. We hope this video helps you improve your trading skills. Subscribe to SMB’s YouTube to keep updated on new videos! * no relevant positions
A conversation on an insufficient stop loss in Valeant
During a group meeting with our newest traders we discussed a Double Bottom in Valeant (stock symbol VRX), that triggered a buy from a new trader on our desk. Newb: I saw VRX holding near 62, so I got long. Me: Where was your stop? Newb: 61.90 Me: So you got stopped out? Newb: No Ok so now we have … Read More
What troubles me about this trader
I had a conversation with a new trader today and shared my observations of his trading career. Here is what I liked: He has the ability. He possesses the ability to process information quickly. He has the ability to make fast decisions. This was clear during his firm interview and persists after his start. He has an outsized interest in … Read More