Andrew Keene stopped by our trading office in NYC last week to talk with those in the SMB College Training Program. He was visiting before sitting as a guest on Bloomberg TV. Andrew has been a presenter with Seth Freudberg for the SMB Options Tribe in the past (see the video below). One of our trainees put together his thoughts on his visit.
I had the pleasure of meeting Andrew Keene Friday afternoon. He is the founder of KeeneOnTheMarket.com, and he has just released his first book KeeneOnTheMarket: Trade to Win Using Unusual Options Activity, Volatility and Earnings.
Andrew shared with us his career in trading, from on the floor at the CBOE to trading his own money. His edge in trading is his knowledge in options and the strategies he uses when he puts on trades. The main focus is on watching unusual options activity, specifically paying attention to orders that exceed the average daily volume.
His experience and lessons learned from trading were what really stuck out. He offered great insight on what separates a good trader from a great trader, which is that great traders ask themselves: “If I’m wrong, how much can I lose?”, his point being that all great traders make sure that the downside is always covered. If we do this correctly, he argues, then the upside will follow with appropriate targets and execution. Andrew also shared a valuable lesson that he learned from his transition from off the floor, which is that you need to wait for the best setups to trade. When he was on the floor he used to place far more trades then he does now, so getting used to less action during the day was a challenge
The time Andrew spent with us today was very valuable, and the lessons that he shared can only be taught through experience of trading the markets (trainee note ends here).
At SMB we have been fortunate to have so many wonderful trading guests stop by and share their vast trading knowledge with our students and traders. Thank you Andrew for taking the time to teach some of our bright students and future traders.
Mike Bellafiore
You can be better tomorrow than you are today!
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