{"id":8966,"date":"2010-12-21T10:59:18","date_gmt":"2010-12-21T15:59:18","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=8966"},"modified":"2010-12-21T11:01:51","modified_gmt":"2010-12-21T16:01:51","slug":"the-evolution-of-a-trading-answer-part-ii","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/the-evolution-of-a-trading-answer-part-ii","title":{"rendered":"The Evolution of a Trading Answer (Part II)"},"content":{"rendered":"<p>Yesterday we examined a trading question from one our remote trainees <a href=\"http:\/\/www.smbtraining.com\/blog\/the-evolution-of-a-trading-answer-part-i\">here<\/a>. \u00a0When faced with such a question often a trainee wants an answer ASAP. \u00a0And for me certainly it would take less time if I just offered the answer to trainees and moved on with my day instead of asking them questions, letting them struggle for the answer, and wait for it. \u00a0But is that best for their learning?<\/p>\n<p>In my last post I asked what a great trainee would do after struggling with the question of flipping. \u00a0Below is the answer of a great trainee. \u00a0He sought advice, considered the advice, found the best system for flipping FOR YOU, and then asked an experienced trader to review. \u00a0We remember most what we figure out ourselves.<\/p>\n<blockquote><p>I\u2019ve thought through the flipping scenarios that makes most sense to me.\u00a0 Its definitely a combinatorial issue but the below does provide good guidance to keep.<\/p>\n<p>General scenarios to consider flipping (ranked from less risk to more risk);<\/p>\n<ol>\n<li>Range plays of 15 Cents and above<\/li>\n<li>Breaking news intraday (ones that are unexpected and especially causes a lot of uncertainty or high hopes like for example, lawsuit against RIG regarding oil spill, products adopted by tech giant like AAPL, etc.. )<\/li>\n<li>Sudden and significant change in market (SPY, futures, etc)<\/li>\n<li>A very sharp and\u00a0<strong><span style=\"text-decoration: underline;\">fast<\/span><\/strong> move in the stock making it stretch very much (<em>bias that needs to be further explored<\/em>: less risky \u00a0when flipping from short to long due to \u201cdead bounce cat\u201d and \u201chuman nature pessimistic rejection\u201d effects).<\/li>\n<\/ol>\n<p>Specific conditions (on top of the normal entry conditions to the stock);<\/p>\n<ol>\n<li>Unusual Held Bid\/Offer<\/li>\n<li>Waning momentum<\/li>\n<li>Identifiable strong support\/resistance (intraday and\/or daily)<\/li>\n<li>Consolidation<\/li>\n<li>5 to 1 risk reward<\/li>\n<li>Confirmation for adding size and confirmation to enter when stock stretched too much.<\/li>\n<\/ol>\n<p>After writing this down and reading it again I suddenly felt that I understood your thought process of why to go short in SLM at .53. \u00a0Like you said, there is no wrong or right.\u00a0 There is just correct thinking.\u00a0 \u00a0That was a nice way to see it.<\/p>\n<p>This list is dated 12\/20\/2010 in my notebook. \u00a0I shall review it once in a while to fine tune it adding more items that work and delete ones that doesn\u2019t.<\/p>\n<p>Thank you for showing me this \u201cfishing rod\u201d (opposed to giving me the \u201cfish\u201d)!!!<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Yesterday we examined a trading question from one our remote trainees here. \u00a0When faced with such a question often a trainee wants an answer ASAP. \u00a0And for me certainly it would take less time if I just offered the answer to trainees and moved on with my day instead of asking them questions, letting them struggle for the answer, and &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/the-evolution-of-a-trading-answer-part-ii\" class=\"more-link\">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-8966","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":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Evolution of a Trading Answer (Part II) | 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-ii\" \/>\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 II) | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Yesterday we examined a trading question from one our remote trainees here. \u00a0When faced with such a question often a trainee wants an answer ASAP. \u00a0And for me certainly it would take less time if I just offered the answer to trainees and moved on with my day instead of asking them questions, letting them struggle for the answer, and ... 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