{"id":1426,"date":"2009-07-11T14:34:55","date_gmt":"2009-07-11T19:34:55","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=1426"},"modified":"2023-05-24T17:29:52","modified_gmt":"2023-05-24T21:29:52","slug":"plan-b","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/plan-b","title":{"rendered":"Plan B"},"content":{"rendered":"

Today at SMB’s headquarters in midtown Manhattan we watched some trading tape with our developing traders. \u00a0And yesterday we did the same. \u00a0A recurring theme jumped out. \u00a0How to enter a stock above an important level when you missed your initial buy. \u00a0Let’s discuss.<\/p>\n

One of our better traders showed his tape of GIS recently (Honey Nut Cheerios….delicious!). \u00a0Between you and me I think he might have been a little tired from a late night out on the town. \u00a058 was a huge resistance level. \u00a0And finally GIS cleared this resistance level. \u00a0The first opportunity to buy was 58.07 and our solid trader passed on this pay. \u00a0He bid 58.01. \u00a0Smart idea. \u00a0But not a complete thought.<\/p>\n

What happens if the stock does not pullback to the level it broke above? \u00a0How do you buy this stock a little higher than you initially had hoped? \u00a0I have been noticing this incomplete thinking from our traders as of late. \u00a0They will buy 58.01 but if they miss this initial buy, then they have no plan to buy the stock above the level. \u00a0And they are better traders than that.<\/p>\n

Often in trading you don’t get exactly what you want. \u00a0But also often there is a plan B trade that can be very effective. \u00a0OK so we have a stock above a level, plan A was not available so we need a plan B.<\/p>\n

For me if the stock does not pullback to the level and lingers .07 by .08, then I pay .09. \u00a0I prefer a battle with .07 by .08 as this increases my win rate when paying .09. \u00a0But if 58 is a huge level I will pay .09 if the stock lingers.<\/p>\n

What is also interesting to me is an inability to get hit on the bid. \u00a0So if GIS lingers at .07 by .08 then ticks down to .05, I bid .03, the stock shows my bid but I do not get hit. \u00a0I step up to .05 and do not get hit. \u00a0And then we see .09 offer where we must decide whether to pay. \u00a0For me I am paying. \u00a0But then again I was also asleep by 8:30 PM last night (had a little too much vino with dinner at Tao<\/em> perhaps). \u00a0We all must develop our plan B’s that make sense for us.<\/p>\n

Look, it is not important that you follow my plan B. \u00a0It is important that you have a plan B. \u00a0And it is helpful to have a few different ways to get into GIS above 58 if your initial buy does not materialize.<\/p>\n

Enjoy your weekend. Don’t forget to follow us on Twitter!<\/a><\/p>\n

\"GIS<\/p>\n","protected":false},"excerpt":{"rendered":"

Today at SMB’s headquarters in midtown Manhattan we watched some trading tape with our developing traders. \u00a0And yesterday we did the same. \u00a0A recurring theme jumped out. \u00a0How to enter a stock above an important level when you missed your initial buy. \u00a0Let’s discuss. One of our better traders showed his tape of GIS recently (Honey Nut Cheerios….delicious!). \u00a0Between you … Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":1432,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,10],"tags":[4676,30,18,301],"class_list":["post-1426","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-comments-2","category-mike-bellafiore-bellas-blogs","tag-day-trading","tag-prop-trading","tag-smb-capital","tag-trading-blog"],"yoast_head":"\nPlan B | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/plan-b\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Plan B | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Today at SMB’s headquarters in midtown Manhattan we watched some trading tape with our developing traders. \u00a0And yesterday we did the same. \u00a0A recurring theme jumped out. \u00a0How to enter a stock above an important level when you missed your initial buy. \u00a0Let’s discuss. 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