In previous videos, we talked about levels of support and trading areas. When specific trading areas are breached, we patiently wait for the price to develop to the next trading zone. During the time of price expectation, we step away from the market in order to avoid costly errors. In SMB forex, we follow the real market’s trend and … Read More
SMB’s Options Tribe: Tuesday, December 13, 2011 at 5pm EST: A Multi-Month, Multi-Index Butterfly Strategy
Tuesday December 13, 2011 at 5:00 pm Eastern Standard Time SMB’s Options Tribe is an online community of options traders dedicated to sharing successful options trading ideas with all of our members worldwide. Each week the community will meet online for the primary purpose of watching live presentations made by outstanding veteran options traders and experts in the world of … Read More
The Risk of Closing a Position That is Working For You
I was watching DRI trade on the Open today. To say that the price action was “whippy” would be an understatement. It seemed to be touching every price and there was no way I could possibly control my risk. So I waited. After 10:00AM I initiated a short position at 43.25. I saw some selling a couple of minutes earlier … Read More
Free Options Webinar: SMB’s Options Tribe: Today at 5pm EST: Weekly credit spreads using a trading system
Today at 5:00 pm Eastern Standard Time SMB’s Options Tribe is an online community of options traders dedicated to sharing successful options trading ideas with all of our members worldwide. Each week the community will meet online for the primary purpose of watching live presentations made by outstanding veteran options traders and experts in the world of options trading. This … Read More
Traders Ask- Should I add or sell?
Happy Saturday Bella and Steve, I’m reviewing one of my old trading tapes and wanted to get your opinion on a trade I executed in TVIX back on 7.11.11. Let me setup the trade for you: Basic Sup and Res Play Prev close: 16.36 Res: 17.90-17.95 Sup: 17.70, 17.50 Gapped up to 17.30 pre-market, consolidated around 17.45-17.50, started an uptrend … Read More
Understanding the market structure of the day impacts all of your intraday trades
Understanding the market structure of the day impacts all of your intraday trades. Corey Rosenbloom has done some excellent work on this important trading concept. Dr. Steenbarger has written about its importance. At SMB we talk about the Big Picture before we start our AM meeting. Below is a self-proclaimed rant from a new trainee. We can learn from his monthly analysis … Read More
A Few Spins Of The Wheel Redux
We made a fundamental error in calculating the returns in our last article, and many thanks to one of our readers who was on his toes and caught it. Some of our calculations were based on dollars per trade and others on dollars per share—clearly a case of pineapples and pomegranates, along with doing the calculations much too late at … Read More
Shifting My Bias
I shorted BIG in the late morning today. It gapped down on its earnings release and then proceeded to consolidate below 36.70, which in my view is an important long term support area. My initial short was when a buyer dropped at 36.20. It quickly dropped about 30 cents and then traded right back up to the 36.20s. I shorted … Read More