Q: Mike – so since scalping is dead, can you explain how Shark has hundreds of trades a day? (What I saw in the Playbook from his results on SMB ChopTracker)? Is it basically he takes a low risk entry and then is just adding and subtracting to his position with the ebbs and flows of the tape? Just curious so I … Read More
My Thought Process: $FB
Before I start to break down each StockTweet I want to share some background information for this trade. FB reported a huge fundamental shift in their most recent earnings report on July 24th. FB’s mobile revenue as a percentage of its total revenue doubled. This was a game changing piece of information as the largest impediment to FB’s stock performance … Read More
Can You Overthink While Trading?
The cycles of trading. Do we get worse sometimes if we overthink and get too caught up in things? @mikebellafiore I was asked this question during a recent Webinar “Trading Fundamentals: Things Great Traders Do and Never Do”. Gr8 question! Yes, traders can over-think. I sat in our conference room yesterday with one of our brightest traders who has been … Read More
$CREE Went Down & $NTAP Went Up
Following their respective earnings releases $CREE and $NTAP both gapped lower. Yet during our morning meeting I discussed trading $CREE on the short side and $NTAP on the long side. What was different about their price action that caused me to focus on a particular bias? If you look at the longer term charts below they seem fairly similar yet … Read More
Avoiding Common Mistakes in Trading Weekly Options
Options with weekly expirations offer a huge improvement to the learning process for new option traders. You can increase your screen time very rapidly and see how just seven days’ difference might change how two positions react to a move in the markets. When weekly options were first introduced they quickly became a favorite vehicle to trade for many options … Read More
How to Trade In-the-Money Call Options
Go long! No, we don’t mean sending the wide receiver out for a long pass. We’re talking about using the most basic of options trades: initiating a position with a call option instead of buying 100 shares of a stock to create a long position. Options are a great way to take a position in a stock or an index. … Read More
Why is Order Flow Important?
When it comes to order flow, many newer traders tend to think of volume bars or time and sales information. It is much more than that, and it really helps to understand the premise behind how markets facilitate order flow. It may not give you an immediate strategy to make money with, but what it does is provides an added … Read More
The Scalable Trader
Hi, I attended the 2nd Day session with Mike during Ifest Singapore 2013. I am blown apart by the depth taken to create SMB trading protocols and the rational behind them. I was particularly pleased with Risk allocation technique created by Mike (that was simply brilliant). A sample can be seen here (http://www.smbtraining.com/blog/did-you-trade-well-part-i). For the first time, I am … Read More