Today I received this email from a trader who learned from SMB Blog. Perhaps now we can all learn from him. Here are his trades:
Attached is a word document with screenshots of a trade I made this morning. I used 2 of your recent blog entries to find a stock and implement your strategy. Probably one of the best trades I’ve ever made (strategy wise). When everything is up and there’s nothing to buy, look for the reversal plays like you blogged this morning. I’m sure I could have still managed my entries and exits a little better, but overall it was a $476 trade.
I took two of your recent blog entries in account on this trade. First rather than load the boat on a break above 31, I picked up 200 shares on a pullback to 31 ( I liked that I had the 31 handle acting as support as well), then I took today`s blog entry in account and bought 200 more above 31.12 hoping this reversal will continue with the market trending up.
I added at .28, .38, and .58. I`ve been selling at or near pre-determined targets of .48, .58., .69, .87, and .97. As it broke 32 I had 200 shares and set a stop at .87 where I ultimately got stopped out of the trade. Up $476 on the trade. This is probably one of the best trades I`ve ever made (not the biggest win but good in other ways). Very strategic, and with my initial stop below the 31 handle the most I ever had at risk was 12 cents. Thanks for the blog entries and thank Steve for his Stocktwits videos, I`ve watched most of the archives now.
Mike Bellafiore
Author, One Good Trade
One Comment on “Learning From a Reader Who Learned From SMB Blog”
This is great. I have to admit most of my better trades have come from the AM ideas. And if theyre not, I find out later that the SMB desk was in the same stock anyways. These guys know what theyre doing!
As for the post, this definitely reinforces how important it is to go over your trades in detail. I love this exercise. I usually pull up a 1 minute chart after the close and go to the exact moment I was in specific trades to review my thought process and if I was sticking to the plan. Its great because you can see exactly what works and what doesn’t, and continue or avoid certain things.
Good Trading