I had an interesting meeting yesterday evening with SMB’s options trainees reviewing yesterday’s meltdown and the affect it had on their options positions. We spent the whole meeting dissecting trades that the options trainees had made during the day. breaking down what went right and wrong with each one and why. It was a great meeting–real traders faced with the … Read More
Traders Ask: How Do I Develop Conviction?
I have a question for you: Is conviction something you have to earn?? I know the question is almost rhetorical. But I listen to the older/experienced traders before, during, and after the market on the Virtual Trading Floor and I hear the word conviction getting thrown around a lot. Especially when I’m listening to Marc Sperling. When Sperling is doing his … Read More
Traders Ask–When do you consider an intraday trend overextended?
Hi Steve, I just have a couple of question regarding trend trading: 1) When you see a stock that’s trending but has already much more than its average range (i use ATR), do you skip/pass on it or would you still be buying into pullbacks? Do you ever find yourself thinking, “Ok this stock is just way overextended from its … Read More
Traders Ask- the loss limit, resilience, and confusion
Hi Bella — I’ve been reading your book carefully and enjoying it very much.I live in Las Vegas; and would much rather trade stocks than play in the casinos. I’ve been an occasional end-of-day trader for over 10 years. Now, since last October, I’ve been endeavoring to teach myself how to day-trade. So far, I think your book is the … Read More
Traders Ask: Was this One Good Trade ($DV)?
Mike, I have a quick question today about a setup I was in… After a great run-up from this AM and yesterday the education stocks were starting to come back to life and making fresh intra-day lows (around 11AM)… I saw APOL, STRA and ESI making these intra-day lows (the spys were making lows as well)… while cycling through the … Read More
Traders Ask: Why Can’t I Trade the Open Better?
Hi Mike, I’m a developing trader with a full-time job. Fortunately, I live on the west coast which affords me the first two to three hours of the day and my entire evening(!) to devote to trading and studying, respectively. Unfortunately, the setups I have the most success with often develop too late in the morning for me to see them … Read More
Traders Ask: How do you play a breakout trade?
Hello Mike, An appreciative follower here. There’s this question that has been floating in my head. I’m reaching out to you for abetter answer. When do you pay for breakout plays out of a range or through a key resistance? Do you: 1. get in earlier at a better price anticipating the breakout 2. hit the offer as soon as the key … Read More
How I would have started my prop firm differently
Mike, Firstly, I just wanted to thank you from the outset for your ongoing work and contribution to the trading community. I have read your book, I read your posts daily and I admire greatly the philosophy of your firm SMB Capital. Your firm really is the pioneer of trading education and skill development for prop traders. I hope you realize … Read More