{"id":4006,"date":"2010-03-05T18:22:31","date_gmt":"2010-03-05T23:22:31","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=4006"},"modified":"2010-03-05T21:43:12","modified_gmt":"2010-03-06T02:43:12","slug":"an-a-trade-or-b-trade","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/an-a-trade-or-b-trade","title":{"rendered":"An A Trade or B Trade?"},"content":{"rendered":"<p>At SMB we distinguish from good, very good, and great set ups. \u00a0Or we make A, B, and C trades. \u00a0We use this to determine how much risk we are willing to take on a trade. \u00a0An A trade receives risk the equivalent of 33 percent of our intraday stop loss, a B trade less, a C trade even less.<\/p>\n<p>Today Rosie, one of our developing traders, bought LMT above an important technical resistance level, 80. \u00a0She started a position equivalent to a B trade. \u00a0She was waiting for more confirmation above 80.30 on the tape for this set up to be an A trade for her. \u00a0LMT had not traded above 80 for 6 months. \u00a0This was a level she was watching for quite some time. But the volume was thin, she did not see a big buy order enter the market. \u00a0So she just held her B trade.<\/p>\n<p>The market started an uptrend after 10AM. \u00a0SPY resistance was not till 115, or much higher levels. \u00a0So we had a very strong intraday market without resistance till 115.<\/p>\n<p>Rosie grabbed me after an end-of-the-day SMB meeting and asked me whether she should have traded this set up with more size. \u00a0Can an important technical level trigger an A trade for you? \u00a0Or do you need confirmation above this important level to make this an A trade? \u00a0What would you have done with LMT above 80? \u00a0Full size for an A trade? \u00a0Or would you have waited for confirmation on the tape, or with price above 80.30?<\/p>\n<p>Best of luck with your trading.<\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/03\/LMT-LT-3-5-10.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-4009\" title=\"LMT LT 3-5-10\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/03\/LMT-LT-3-5-10.png\" alt=\"\" width=\"566\" height=\"407\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/03\/LMT-LT-3-5-10.png 566w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/03\/LMT-LT-3-5-10-300x215.png 300w\" sizes=\"auto, (max-width: 566px) 100vw, 566px\" \/><\/a><\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/03\/LMT-3-5-10.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-4011\" title=\"LMT 3-5-10\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/03\/LMT-3-5-10.png\" alt=\"\" width=\"563\" height=\"391\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/03\/LMT-3-5-10.png 563w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/03\/LMT-3-5-10-300x208.png 300w\" sizes=\"auto, (max-width: 563px) 100vw, 563px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bella asks readers whether this trade in LMT is an A setup or a B setup.<\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,456],"tags":[507,739,495,738,740,741,737,18,55],"class_list":["post-4006","post","type-post","status-publish","format-standard","hentry","category-mike-bellafiore-bellas-blogs","category-trader_development","tag-a","tag-a-trade","tag-an","tag-b","tag-b-trade","tag-c-trade","tag-or","tag-smb-capital","tag-trade","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>An A Trade or B Trade? 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