The Value Added Tweet

sspencerSteven Spencer (Steve's) BlogsLeave a Comment

I have been on Twitter for for almost three years and have tweeted about 2,000 times. I have found Twitter to be an extension of my personality for the most part. I tend not to offer ideas unless they are well thought out and therefore feel comfortable sharing them with others. I am amazed at the almost stream of consciousness tweeting that other traders are able to engage in. Even if I believed I could offer 15 or 20 good ideas in a trading day I don’t see realistically how with my style of trading, actively engaged, I could ever share each of those thoughts on Twitter.

But I have decided in 2012 to make sure that I at least offer a few of my best ideas each day that I am actively trading. The most value I can add is when I am actively trading the Open and have fully absorbed the price action in an In Play stock and can identify trades where the risk/reward is beter than the 1/5 ratio that is taught to SMB trainees. I have found over the years that my best ideas generally offer significantly better r/r than the 1:5 ratio as well.

The SMB trainees that have developed into the most consistently profitable traders over the years have maintained this level of selectivity with their trades as well. Here is the format these ideas will take on Twitter:

  • price range I would look to get short/long
  • stop price above/below which I would consider the idea not to be working
  • one or more price targets

I have asked @Gman_SMB to join me in this exercise as well. So look for these ideas from him as well. And if he slacks off send him a message on Twitter to pick up the slack and start to share more 😉

The first tweet of this style was sent on Twitter and StockTwits out by me at 11:02AM this morning as I had to leave the desk for firm business but wanted to share my AMZN trading idea prior to leaving. I will blog later today on my thought process for that trade idea and analyze how the trade played out. I welcome everyone to track these ideas closely over time as to their efficacy.

I also wanted to point out that these ideas are not a recommendation to buy or sell a specific security. I am a professional trader that trades at a Prop trading firm and also engages in the sharing of educational materials (full disclosure at bottom of page).

Steven Spencer is the co-founder of SMB Capital and SMB Training and has traded professionally for over 15 years. His email is [email protected].

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