Bella, I was wondering if you had any tips on figuring out when to ignore the ATR on a stock keep looking for entries. AVP was a stock I thought I had traded well at the time given that it was already overextended at the time. It has an ATR of 0.4 yet in the end it moved well over … Read More
Should Short Term Traders Consider Fundamentals–Part II
In Part I of this series I discussed whether understanding the news could help short term traders limit their risk on overnight positions. Today’s post discusses whether understanding the news gives a short term trader a possible edge in determining profit targets and when to exit an intraday position. As examples I will use two trades that Sammy, an SMB … Read More
Is a Time Stop a Reason2Cover My Position in GMCR?
Hi Mike, I know you are a busy guy but I had a question regarding exiting potentially wrong trades ahead of my stop point, something I’ve had difficulty with in the past. For background, I have stopped this practice as I have found that acting on my newbie instincts or interpretations of order flow has led me to cut positions … Read More
Do I Need to Learn to Read the Tape?
SMB Reader: Dear Mike, I wanted to reach out to let U know how much of a better trader I’m becoming thanks to U guys. It feels really good to notice daily improvements in my trading. I paper traded for 2 years and half before starting with real money 3 months ago. I’m a French award winning multi-platinum musician/composer/producer who’s … Read More
To Take or Not Take Breaking News Plays
SMB Reader: Hi Mike, How are you doing? I have an interesting question when I talk about trading plan with a local trader. Regarding trading plan, my idea is: trading plan is your preparation for next trading day, but I have to be flexible after the market open. which means occassionally I have to take some trades not on my plan. Trading plan is like the preparation for a … Read More
My Thought Process: $MCO
I shared this because it moved above INTU into the #1 spot on SMB Radar “weak today”, while it was also #4 for “in play”. Stocks that appear across the top of multiple lists in the SMB Radar usually offer the best risk/rewards setups. A quick look the daily chart shows the next possible support area which had been resistance … Read More
Should Short Term Traders Consider Fundamentals? Part I
I believe the majority of market participants agree over longer time horizons fundamentals will influence the price of a stock. But what about in the short or medium term? Should intra-day traders or swing traders be evaluating fundamental news related to the stocks they are trading? Or should they simply focus on price action in relation to news? I have … Read More
Webinar Recording: The Playbook–Reasons2Sell
For the February 7th installment of our Webinar series, The PlayBook with Mike Bellafiore, Mike discussed Reasons2Sell: Getting The Most Out of Your Trades.