On our desk newbies are taught to look for setups where they can risk one unit to make five. By constantly looking for these great risk/reward setups they can become consistently profitable. But there is something more important one needs to recognize in order to move to the “next level”. Traders must recognize that unlike people all trades are not … Read More
“V” Right on the Open – Where I Want to Be
We saw it again. We have seen this in QCOM, MSFT, and now V. Right on the Open V traded straight up. If I told you I had a three point trade in less than 15 minutes that reoccurs would you be interested? As an intraday trader this is a trade you must add to your quiver. Let’s discuss. I … Read More
SMB on CNBC’s Fast Money Tonight – April 30, 2009
Our very own Jeff Tomasulo, senior trader at SMB Capital, will be a guest on CNBC’s Fast Money tonight from 5-6pm. Jeff will discuss which financials to watch with the upcoming bank stress test results. Jeff has been trading professionally for over thirteen years. We hope you catch Jeff on CNBC. Best of luck with your trading! Don’t forget to … Read More
The Advantage of In Play Stocks
I have written extensively since our blog began regarding “In Play” stocks. During earnings season there are many In Play stocks to choose from each day. Traders should choose no more than two or three of these stocks each day to focus on. This is the case because you can make a lot more money trading one or two stocks … Read More
My FOMC Game Plan
Below are the last two FOMC statements: January 28, 2009 March 18, 2009 The most important part of the minutes will be the wording. The rates won’t be cut (we’re already at our lowest rate) and they won’t be raised (we’re in the middle of a deflationary cycle where raising interest rates would kill any hope of a recovery and … Read More
The Market Does Not Have to Be Fair
I got caught in the DNDN downmove today. DNDN traded down 15 points in 40 seconds. Then DNDN was halted. We are waiting for it to reopen. I was long a core position in DNDN from 24.43. This was support. DNDN was trading strongly. It traded down from 24.75 to 24.32 where I bought some more. DNDN was not trading … Read More
Learning From Other Traders
New traders at SMB can learn from themselves, their mentor and their peers. Here at SMB we have many guys that are obsessed with trading. Every chance we get, we talk about different plays, how we traded them, how much size we thought was reasonable, and how we could have traded that play differently. I want to highlight the importance … Read More
The Week That Was: April 20 – 24
Well what looked like was going to be a week for the bears ended up being a pretty good week for he bulls. Let’s keep an eye on that 88 level in the SPY, as it looks like it’s going to come into play again this upcoming week. The dollar index looks like it is breaking down from a bear … Read More