Hi Mike, I am hoping for your insight on a trade I’m making today. My uncertainty in this trade it typical of what I find in a lot of my trades. I am trading GD as a second day play. My thinking is that the sell-off yesterday was overdone and that it ultimately held important support at 73. I was looking … Read More
Traders Ask: When Do We Switch From Momentum to a Position Trade?
Bella, I have attached a couple plays from this week. I don’t have the the tape for them but I explain it with the arrows. I also had a quick question. Today i my worst day trading NYX. There was so much volume done in a tight range that I expected an explosive move up once the stock showed its … Read More
Traders Ask: How Do You Detect Overconfidence?
Hi guys After a rotten 12 months I’ve had a cracker of a month not just with the recent bull run but with the preceding drop also. This has occurred after stepping back, refining a trading entry methodology based around volume (exit and money management are already in place) and focusing on this play. Obviously I’m proud of myself, but pride … Read More
Traders Ask: How do I “repair” my deep in the money covered call option?
A reader asked us for help in the following situation: “I have a question and wonder if you will help. I would appreciate very much any advice that you can offer. I have 100 shares of GMCR stock and I have written a covered call– June ‘ 11/ strike 43– against it . The stock gapped up from 41 to … Read More
You Ask I Answer
Hi Bella: Hey young fella. Thanks very much for putting some much valuable material on your blog and website. Thxs for following us. Although I didn’t receive the opportunity of a summer internship with SMB, your website certainly provides quite a learning experience for me. Freakin SMB HR! I especially appreciate your classroom style of challenging your trainees to prepare for more … Read More
Traders Ask: How Do You Use The Retracement High/Low?
Bella received the following email from a blog reader today Dear Mike, Thank you for an OUTSTANDING book. After studying the information within I now feel like I have a framework for improving my skills with each trade, every day. Steve talked about trading the retracement high today on stocktwits TV today. Could you please explain in more detail and maybe … Read More
Traders Ask- Doubling Down Bella?
In One Good Trade I offered this example of a RIMM trade: Today I got this email from SMBer Terry: Hello Mr. Bellafiore, I just have a quick question about adding size to a short in a weak stock that is working against you. In your book, you reference a play in RIMM around the level of 82. The play … Read More
Becoming Attractive to Prop Trading Firms: Insights from Stockbee Blogspot
Dear Mr. Bellafiore, I just finished your book while on vacation in Cabo this week and was blown away. For the last several years I have wanted to get into trading professionally, but couldn’t make the move because I was not sure there was a system for learning and coaching that would help me get better, not just follow what the “superstars” … Read More