Where and How to Buy KBH

So KBH outperformed the market yesterday.  There were many tweets on @stocktwits asking where and how to buy.  This chart below gives you an entry to consider.  It was produced by an SMB Trader and sent to his desk with the simple message: ” add this picture to your playbook. memorize this pattern. KBH @ 14.28.”  We call this a … Read More

Do not miss 2nd Day Plays

During a midday Tradecast I  said, “You do not want to miss 2nd Day Plays.”  These are the easiest set ups for new traders.  Essentially a 2nd Day Trade uses the most important prices from Day 1 of when a stock was In Play.  So if a stock reported, what were the most important prices from that Day 1?  The … Read More

Do not spend time mastering the shakeouts (VLO)

Hey Mike, Hope all is going well since we last spoke!  I had a quick question for you that I knew you would be able to answer with ease with regard to watching the tape and getting shaken out.  I’ve been trading on the LightSpeed simulator to better prepare myself for this summer when I take part in the 5-week training … Read More

March Trading Madness

I received this email from an SMB trader after the close today: After watching some of the VCU v. Drexel college basketball game last night I wanted to take the VCU head coach’s mantra of “Aggressive, Confident, Loose” to trading. I was more aggressive than usual with my size in the plays I was involved in. However, I was doing … Read More

Copy this trader (episode 2): An SMBU Blog production

Yesterday in our first series of  “Copy this trader” we highlighted the best practices of an SMB Trader to copy.  We are back at you with some more goodness from the desk. continuing to focus on whats working for me which is finding the sector thats showing relative strength or has fresh news and finding the sympathy plays in the … Read More

An Argument for Why Not Trading Much Makes No Sense

So I work with a trader who started very well. I was very happy with his progress. He was consistent with his results. Steve frequently would remark at his over-performance given his experience. And then recently he has not traded well.  So much so that yesterday I wrote him this email: Hey, what is going on w u? Something bothering … Read More

The CCL Trade

After the open we meet in our training room to review the open with some of our newer traders. We talked CCL, Carnival Corporation, for the midday and into the close. Before that we went over what we liked about CCL and what we didn’t. What we didn’t like: 1) Future bookings to probably decrease because of the accident. 2) … Read More

Free Webinar: How to trade earnings season

Please join Mike Bellafiore, author of the “trading classic” One Good Trade, this Thursday at 4:15PM EST in the free webinar: How to trade earnings season. Bella will discuss: 1) the patterns that work best during earnings season 2) patterns that are developing for this earnings season 3) what most to focus on for earnings season 4) growing your PnL … Read More