You know the following situation well: You had a long in EUR/USD at 1.3005 and sold it at 1.3018 only to watch it go to 1.3086 over the next hour. Of course when you try and hold for these type of moves, you give back your 10+ pips plus some additional when your stop gets hit. How do we know … Read More
Free Options Webinar: Greg Loehr—Taking advantage of AAPL’s low implied options volatility
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—during which veteran options traders and experts in the world of options trading share live presentations. Next week, Greg Loehr returns to the tribe to discuss ideas as to … Read More
SMBU Trading Tip of the Day ($VSI)
In this SMBU Trading Tip of the Day, Bella, author of the “trading classic” One Good Trade and The PlayBook, talks about the importance of execution with an example in Vitamin Shoppe (stock symbol $VSI). Highlights from this trade: 1) You can turn a very good trade into a losing trade with poor execution. 2) Trading is a skill. 3) Market “calls” are … Read More
The Second Step to Systems Success
Last time we talked about Risk, which is the first and most important aspect of a trading system. We discussed how limiting risk can create higher absolute returns because of reinvestment, raising capital, and using leverage. Now we can talk about our second focus: Returns. There are three types of returns that we need to understand. First is the back tested returns. … Read More
Randall Liss: Designing an Options Trade Around Your Market Opinion
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—during which veteran options traders and experts in the world of options trading share live presentations. This week, Randall Liss returns to the Options Tribe to accept tribe members’ … Read More
A Trader’s Trading Path From A-Z
This Thursday I will speak to aspiring traders at Pace University. As I prepare for my discussion, I have been thinking of a Trader’s Trading Path From A-Z. A. Read about the markets when you are young. If you enjoy reading about markets, then read more. B. Start playing with putting together trades in simulation. C. If you find some … Read More
The First Step to Systems Success
Risk. This is the first and most important metric for a systems trader to track and improve. When learning about a system or strategy, most people first ask about the returns. Imagine you had one program that generated 21% per year on average and second was doing 35%. For some, the analysis is over because they just want higher returns. … Read More
SMBU Trade of the Week: Facebook
Mike Bellafiore, author of the “trading classic” One Good Trade and The PlayBook, talks about his SMBU Trade of the Week in $FB. Even though he thought $FB was going to trade lower, when it broke out to the upside, he followed the price action and captured an excellent risk/reward opportunity. Highlights from this trade: 1) You do not have to predict where … Read More