Static and dynamic trade planning. May Bearish Butterfly example. Risk Disclaimer
$FB – Gap and Go Trade
Here is an example of a pro trader breaking down a Gap and Go Trade in $FB the day of earnings. Mike Bellafiore The PlayBook One Good Trade no relevant positions
My Thought Process: $AAPL
Here is a timeline of my trading thought process starting on April 24th the morning after AAPL reported earnings through April 29th. I want to put this first StockTweet in context. After AAPL released their earnings report trading was halted. AAPL announced a capital plan to return about $100 billion dollars to shareholders via dividends and stock buybacks. They reported … Read More
Using LRC to Create and Hedge Positions in Multiple Markets
The LRC Channel has a twofold purpose. First, you can use it to leg into index credit spreads with higher statistical probability of success. Second, you can use the direction of the LRC (linear regression curve) to trade the trends in individual stocks. Here is a recent example: The center line on $C (Citigroup Inc) indicated a long trend direction … Read More
Forex Trading: Hedging. Is There an Advantage?
There was a time (before 2010) when you could open a forex account with any U.S. broker and have the ability to hedge your spot forex transactions in the United States. Residents outside the U.S. still have the ability to hedge their forex positions. On the surface, hedging sounds like the ideal situation: After taking your initial position, if you … Read More
Starting a Prop Desk
Hi Mike, I have a couple of questions that I would like to ask you. First, what is the success rate of new traders once they go through the SMB program? And second, in your opinion what would be the ideal number to start a trading floor with? I realize you might refer to how much capital is available but … Read More
Understanding Market Structure
Hi Mike, 1. Trade only the MOST in play stocks in the beginning as they have the best chance to move regardless of market action. 2. Wait for the market to break previous day’s range or some similar range from previous couple days trading. 3. Establish the the market itself is in play. Is there significant economic news, political unrest, … Read More
And The Answer is… Trade Less
I have a question, but here is the background. I have a VERY small trading account as a trader for a Prop firm. It is an account with $16,000 in buying power and a 40-share max with a $25 loss limit (I’m in my firm’s 18 month trading program and started with a $2,000 account and account grows as your … Read More