{"id":40179,"date":"2015-03-18T13:45:31","date_gmt":"2015-03-18T17:45:31","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=40179"},"modified":"2023-03-30T17:21:43","modified_gmt":"2023-03-30T21:21:43","slug":"the-best-setup-for-new-traders","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/the-best-setup-for-new-traders","title":{"rendered":"The Best Setup for New Traders: A Changing Fundamentals Trade! ($ERJ)"},"content":{"rendered":"<p>What is the best setup for new traders to trade?\u00a0 A Changing Fundamentals Trade.\u00a0 One day the fundamental strength about the name is substantially different than just the day before.\u00a0 These trade setups outperform the market.\u00a0 They trend intraday.\u00a0 They can trend for 1-3 days for those of you who are swing traders.\u00a0 It&#8217;s this <em>new<\/em> news catalyst, a significant change in fundamentals, that propels so much opportunity.\u00a0 These trading opportunities can make your trading month!<\/p>\n<p>For example, last week, we saw an example of changing fundamentals in Macy&#8217;s, stock symbol $M, and the stock plummeted.<\/p>\n<blockquote><p>On May 11, <b>Macy&#8217;s\u00a0<\/b>(M) plunged 15.2 percent after reporting a 7-plus percent drop in sales, its fifth consecutive quarterly sales decline. <strong>Forward guidance was cut as well.<\/strong> Earnings came in at 40 cents (vs. 36 cents expected) while sales totaled $5.77 billion (vs. $5.95 billion expected).\u00a0 Same-store sales dropped 5.6 percent.<\/p><\/blockquote>\n<p>In our <strong><em>new<\/em><\/strong> training program, <a href=\"https:\/\/smbcapital.leadpages.co\/the-winning-trader\/\"><em>The Winning Trader<\/em><\/a>, we will teach 10 trades for you to add to your trading PlayBook, and one of them is the Changing Fundamentals Trade.<\/p>\n<p>I explained the Changing Fundamentals Trade in this video here, with a specific trade that I made:<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/kzZM1bEVnyE\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>Another excellent example of this trading setup is when a company suspends their dividend, as I wrote about in a recent <a href=\"http:\/\/www.smbtraining.com\/blog\/how-a-stock-can-trade-when-their-dividend-is-cut-seadrill\">Seadrill trade<\/a>, an offshore driller.<\/p>\n<p>Yet another example of this setup was when Lumber Liquidators, stock symbol $LL, saw 60 Minutes do a hit piece questioning the safety of a laminated lumber product they sold, the company&#8217;s fundamentals significantly changed, and the stock did this&#8230;&#8230;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-40187\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/03\/LL-1024x975.jpg\" alt=\"LL\" width=\"600\" height=\"571\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/03\/LL-1024x975.jpg 1024w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/03\/LL-300x286.jpg 300w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/03\/LL.jpg 1027w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/p>\n<p>For a recent training class, I mandated that new traders only trade setups with significant changing fundamentals.\u00a0 For our latest class, traders must place changing fundamentals trades at the top of their list for stock selection.\u00a0 They start first with these trades during their AM preparation.\u00a0 They must share with me all stocks that have a significant change in their fundamentals overnight.\u00a0 We want them focusing on these stocks as they start their trading career.<\/p>\n<p>This setup is an excellent trade to add to your trading PlayBook.<\/p>\n<p>*no relevant positions<\/p>\n<div class=\"initial_comment\">\n<div class=\"comment no_bottom_margin\"><\/div>\n<p>&nbsp;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>What is the best setup for new traders to trade?\u00a0 A Changing Fundamentals Trade.\u00a0 One day the fundamental strength about the name is substantially different than just the day before.\u00a0 These trade setups outperform the market.\u00a0 They trend intraday.\u00a0 They can trend for 1-3 days for those of you who are swing traders.\u00a0 It&#8217;s this new news catalyst, a significant &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/the-best-setup-for-new-traders\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":40187,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[420,276],"class_list":["post-40179","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-comments-2","tag-setup","tag-traders"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Best Setup for New Traders: A Changing Fundamentals Trade! ($ERJ) | 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\/the-best-setup-for-new-traders\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Best Setup for New Traders: A Changing Fundamentals Trade! ($ERJ) | SMB Training\" \/>\n<meta property=\"og:description\" content=\"What is the best setup for new traders to trade?\u00a0 A Changing Fundamentals Trade.\u00a0 One day the fundamental strength about the name is substantially different than just the day before.\u00a0 These trade setups outperform the market.\u00a0 They trend intraday.\u00a0 They can trend for 1-3 days for those of you who are swing traders.\u00a0 It&#8217;s this new news catalyst, a significant ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/the-best-setup-for-new-traders\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2015-03-18T17:45:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-03-30T21:21:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2015\/03\/LL.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1027\" \/>\n\t<meta property=\"og:image:height\" content=\"978\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Bella\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bella\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-best-setup-for-new-traders#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-best-setup-for-new-traders\"},\"author\":{\"name\":\"Bella\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161\"},\"headline\":\"The Best Setup for New Traders: A Changing Fundamentals Trade! 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