{"id":8935,"date":"2010-12-20T09:26:29","date_gmt":"2010-12-20T14:26:29","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=8935"},"modified":"2010-12-20T09:27:14","modified_gmt":"2010-12-20T14:27:14","slug":"the-evolution-of-a-trading-answer-part-i","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/the-evolution-of-a-trading-answer-part-i","title":{"rendered":"The Evolution of a Trading Answer (Part I)"},"content":{"rendered":"

Recently I was sent this question from one of our SMB Training trainees:<\/p>\n

On day 10, you show a video about flipping in SLM.\u00a0 When watching the video I could understand your thought process of entering and flipping based on looking at the tape.\u00a0 Nonetheless, what I could not understand when watching the video is your thought process when wanting to short that .53 level and especially with size (opposed to waiting).<\/p>\n

From what I analyzed before you made that short in the .53 level, it looked more probable that this level is not going to hold the offer because of 5 major reasons that were all present\u00a0before<\/span> that .53 short was executed;<\/p>\n

    \n
  1. On the first attempt of getting short below the .37 level, the stock did not go down much and no strong conviction in that move.<\/li>\n
  2. From the chart it seemed a clear trend upwards just before that consolidation on the .53 area (thus implying a strong stock)<\/li>\n
  3. Futures looked positive (although I cannot see their clear number) thus do not seem to support a down move (on the contrary \u2013 support an upmove)<\/li>\n
  4. The ..37 \u00a0level after breaking down then being a possible resistance level did not hold the second time it got tested (implying stock not weak as thought)<\/li>\n
  5. The .46 level which was kind of a resistance later on could not hold the offer either (implying additional strength of the stock).<\/li>\n<\/ol>\n

    So the only thing I saw in favor to short it at that specific .53 point was just a held offer (perhaps an unusual one). \u00a0I kept asking myself, is that enough to get in under these circumstances? In my view it wasn\u2019t.\u00a0 But apparently you thought it was enough to enter (and especially with size).\u00a0 \u00a0\u00a0So, could you pls explain your thought process to short it at the .53 level \u00a0(and especially with size) opposed to just waiting till it breaks or gather more confirmation before entering (especially with size)?<\/p><\/blockquote>\n

    I responded:<\/strong><\/p>\n

    You are concentrating on learning more about the tape at this stage so keep this in mind. \u00a0We are working on building that skill. \u00a0Full plays come later.<\/p>\n

    I followed up a little later with this email:<\/p>\n

    Its all about u developing a system for when u would flip. Should not b often. Should know when. Should b determined by what makes sense to u from the foundation we teach.<\/p>\n

    And then I waited. \u00a0A good trainee would thank me for my answer and then privately think about his system for flipping. \u00a0A trainee who will be looking for new work soon will read my response and then flip back to SportsCenter.<\/p>\n

    What would a great trainee do? \u00a0If your goal was to become your best trader how would you respond to me? \u00a0And doesn’t the depth of your response mean more to your learning than actually being given the answer of when to flip?<\/p>\n","protected":false},"excerpt":{"rendered":"

    Recently I was sent this question from one of our SMB Training trainees: On day 10, you show a video about flipping in SLM.\u00a0 When watching the video I could understand your thought process of entering and flipping based on looking at the tape.\u00a0 Nonetheless, what I could not understand when watching the video is your thought process when wanting … Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,908],"tags":[4674,18,1193,653,1354,1349],"class_list":["post-8935","post","type-post","status-publish","format-standard","hentry","category-mike-bellafiore-bellas-blogs","category-traders-ask","tag-one-good-trade","tag-smb-capital","tag-trader-education","tag-trader-training","tag-trading-coach","tag-trading-mentor","no-post-thumbnail"],"yoast_head":"\nThe Evolution of a Trading Answer (Part I) | 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-evolution-of-a-trading-answer-part-i\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Evolution of a Trading Answer (Part I) | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Recently I was sent this question from one of our SMB Training trainees: On day 10, you show a video about flipping in SLM.\u00a0 When watching the video I could understand your thought process of entering and flipping based on looking at the tape.\u00a0 Nonetheless, what I could not understand when watching the video is your thought process when wanting ... 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