{"id":38678,"date":"2014-08-28T22:28:05","date_gmt":"2014-08-29T02:28:05","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=38678"},"modified":"2021-05-07T09:43:55","modified_gmt":"2021-05-07T13:43:55","slug":"the-first-trade-we-teach-an-example-with-dsw","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/the-first-trade-we-teach-an-example-with-dsw","title":{"rendered":"The First Trade We Teach (An Example with $DSW)"},"content":{"rendered":"

Good afternoon. I hope this email finds you well. I have spent many hours over the past few weeks reviewing\u00a0your YouTube videos, blog posts and anything else that I can get my hands on that offers a glimpse into how your trading desk makes money. I’m about 2\/3 of the way through your book One Good Trade<\/em><\/p>\n

I have been trading on a demo for the past few days and today everything I have read\u00a0lined up on a particular stock and I wanted to share it with you. I was doing my morning routine of checking In Play stocks, reviewing the news and checking\u00a0important levels.<\/p>\n

One stock in particular jumped out at me and the reason was because\u00a0it met the criteria that you constantly speak about in your literature. The stock was DSW. It was gapping up on earnings related news and based on premarket action it was going to open around a major resistance level of 32.25ish. I kept a keen eye on the premarket trading and watched as it established levels. It opened right around the resistance level and it couldn’t break higher. The tape showed that whenever it traded at these level it sold off. I established a short position just below this level and added as it broke. I was able to ride a quick and easy move of slightly over $1. The price that I would have had\u00a0to hit out was risking about 30 cents but I was able to reduce that risk by watching how it was trading and getting in at good prices.<\/p>\n

It was so surreal that after all the studying I was able to see a real-time example of One Good trade.<\/p>\n

Thank you for putting a great deal of valuable information out in many forms for those of us who would like to reduce the cost and time\u00a0of the learning curve.<\/p><\/blockquote>\n

@MikeBellafiore<\/strong><\/p>\n

At 11AM EST we hold a Trader Development review session with our newest traders and broadcast this to our virtual Trader Development students.<\/p>\n

We teach them One Trade at the start: The Fundamentals Trend Trade.\u00a0 This trade does have subsets so there are really 6 trades within this one trade.\u00a0 But we want our students focused on this one setup.\u00a0 We want their learning experience to be intense with this one setup.\u00a0 We discuss in detail the setup each morning.\u00a0 This is just one session of such instruction and review.\u00a0 Our traders and students review these trades after each close with a detailed trade review and PlayBook Trade.\u00a0 When they show proficiency in One Trade then and only then will we move to the next<\/p>\n

New traders often jump around from trade to trade never bringing the intensity, study and time to master one.<\/p>\n

We have never done this before on our blog until today.\u00a0 Below is an audio recording of our Trader Development session regarding the very stock our SMB Reader wrote to us about- DSW.<\/p>\n

Notice:<\/p>\n