A few years ago two of our best traders knocked on my office to chat. They had an idea. They were interested in trading a swing account with the firm. I suggested that they come up with a list of patterns they wanted to trade and come find me. They never reapproached me with specific enough set ups and worse … Read More
Opening Range Play (MON)
On my latest StockTwits TV show, SMB University, I was asked about trading right on the Open. Often new traders struggle with this time period for two reasons: a) they miscalculate their downside risk before entering the trade b) they do not have a playbook with trades that work for the open. Well let’s try and correct some of (b) … Read More
Traders Ask: What is the Proper Exit on a Swing Trade?
Reader Alex asked: My name is Alex and I’ve been swing trading for two years. I’ve been reading SMB’s blog for a while, and really enjoy the posts on trader development. I have recently journaled a question that emerged during two of my recent short trades. I believe that this question relates to intraday trading as well. Depending on conditions … Read More
SMB Trade of the Week: Visa
Watch SMB Trade of the Week, a Resistance Trade in V from Mike Bellafiore.
Maximizing My Weaknesses
Today I maximized my weaknesses. I found the set up that is a trading weakness for my system, traded it with size, and now sit with a P&L that represents the worst of my trading. In one sense this is quite impressive. I did not just underperform this open. I did as poorly as I possible could. Fresh news … Read More
I Am Just Trying to Get Better
http://www.gladwell.com/bio.html
Trade2Hold- Breaks the Downtrend (LXK)
As we continue to gravitate towards more Trades2Hold, longer holding time periods for intraday trades, we found another excellent set up today in LXK. This is a simple trade and a pattern you might spot a few times a week. We will discuss the entry and the exit. (let me state at the outset that for some reason I can’t … Read More
What a Strong Stock Looks Like
DE was a strong stock this AM. I blog this point besides DE being at its 52 week high. And save that DE was up over 2 1/2 points. There was a telling movement on the open from 51.50 to 51 which foreshadowed a new intraday high to visit. Let’s discuss. SPY 111.50 is an important intraday level. We … Read More