Only four times a year do we get the opportunity to participate in some of the biggest moves individual stocks will experience during the rest of the year. To take full advantage of these opportunities, the work often starts the night before and hours before the market opens. What is your process to prepare for trading these opportunities before the … Read More
My Trading Thesis Was Wrong
In this video I walk you through the process of developing a trading thesis and how to identify when you are wrong. Steven Spencer is the co-founder of SMB Capital and SMB University which provides trading education in stocks, options, forex and futures. He has traded professionally for 19 years. His email address is: [email protected]. Steven Spencer is currently long … Read More
One Benefit of Intraday Trading
The following is a simulated back test of a simple short term momentum system on SPY. It generally has positive performance but the draw down periods are a little deeper and wider than I would prefer. Now, I’ve taken the same system but coded it to go flat at the end of each day. Then it waits for a fresh … Read More
Pro Traders Have This in Common
The best traders in the world have something in common. More interesting than that… it’s something that struggling traders do not think is all that important. Not only do the best traders in the world share this trait; it’s also common to see this trait in top professional athletes, artists, world renown musicians, etc. Just like amateur traders — amateur … Read More
Inside The Trading Vault – a look at GPRO and KO
Trading Vault Concept – “When evaluating a chart, continually ask yourself why buyers or sellers behave in a specific way – and what it means to them when support and resistance levels are made and broken” Many of us are up and coming traders who have consistent issues with the ‘WHY’ to enter a trade. Meaning, we don’t have a hard … Read More
Drilling Down On The S&P 500
This weekend I have seen a few versions of this daily chart of the SPY drawn with two lines to offer what appears to be “symmetrical triangle”. The idea is that buyers/sellers are becoming more aggressive and when one group wins the SPY will close above/below one of the two lines leading to an explosive move. I’m not a huge … Read More
Inside The Trading Vault – A look at CL_F
Trading Vault Concept – “When charts are in a trend, we are often tempted to pick bottoms or tops because we FEEL a chart has reversed enough. The slightest drift over or under a level, we trigger our trades to initiate a trade in the direction of the move, but in these markets breakout and breakdown levels … Read More
Inside The Trading Vault – The ES_F
Trading Vault Concept – “Trading charts profitably and with consistency depends on how well the trader understands the current market structure and relationships between buyers and sellers. Once we understand these formations and structures, we become much more capable of creating our own consistent strategies that perform with a high degree of reliability and consistently.” Trading the ES_F overnight and … Read More