Here is a snippet from December 18th 2012 AM Meeting where Steve Spencer discusses his thought process in AMZN. SMB has never believed in the idea of a “stock picking” service. Professional traders become profitable through building a variety of skills over a long period of time. However, listening to the thought process of a seasoned professional with 17 years … Read More
A Stock May Trade Higher When New Competition Enters Their Market
On December 12th CSTR announced they would be starting a streaming service in competition with NFLX. My initial reaction was a smile and a bit of a chuckle. CSTR has been doing very well for the past few years offering $1 DVDs at supermarkets. A simple business model that was leading to good cash flow. Now it was going to … Read More
Guest Post: “Reversal Rehearsal” $DG
This guest post from experienced futures trader Bruss Bowman provides an excellent example of how to incorporate higher time frame price action into a possible lower time frame trade. It is clear from the post that Bruss in a methodical thinker who is also flexible in his thesis if price behavior fails to confirm. Reversal Rehearsal: Stock Study in DG … Read More
Forex: Are Futures better than Spot?
These days traders have so many choices in terms of what instrument they want to use to express their opinion in the markets. There are mini futures, cfds,spot, ETFs, and regular futures contracts not to mention traditional stocks and bonds. So spread capital amongst all these products and combine that with a general lack of trust from the general public … Read More
“Reversal Rehearsal” Guest Post
Thanks for all the submissions regarding the DG reversal trade that occurred on December 12th. This post was written by a college student who participated in one of the SMB College Training Programs last Summer. Although the post is short and to the point I think Tim captures some of the key elements we look for in a low risk … Read More
Forex: Where’s the “Easy” Button?
Many new traders are looking for a trustworthy resource that will hand them a strategy with a high percentage win rate, a stellar track record and a very short learning curve. This is reminiscent of the many attractive young women in New York City today who according to their online dating ads all seek the same guy: tall, handsome, full … Read More
What a Star Fund Manager Can Teach Us About Improvement
Imagine that a star fund manager, with nearly a decade of stunning results, decides to completely retool the way that he does things. Would you think that he’s crazy? Would you call him a has-been? Or would you draw a different, more instructive lesson—that this is the reason why he’s stayed a top fund manager? The FT recently ran a … Read More
$LULU Trade Preparation
In this video prior to the market open on December 6th Steve discusses how to approach trading LULU following its earnings release: LULU is described as “Amazon Junior” by Steve because it has a tendency to be bought on earnings gaps and show great strength after an initial gap down LULU is a tough intra-day short when moving higher following … Read More