Mike Bellafiore, partner at SMB Capital, wrote an article for SFO Magazine, titled “Adapt to Survive High-frequency Trading”. In the article, Mike discusses the effect High Frequency Trading (HFT) has had on the markets and the changes short-term traders need to make to adapt. Read the full article here and feel free to leave your comments on this blog. Don’t … Read More
Learning How Not to Lose Money
With my post nasal drip cough I tucked myself into my trading station ready to perform. AST who sits to my left was interested in RHT. I didn’t have a stock(s) I needed to trade, so I traded his. RHT on the Open was a lesson in how not to lose money. 1) RHT first moved higher after its gap … Read More
Afterhours and Premarket Information
It was a long day yesterday for me with all things partner on my calendar. One meeting meshed into another. A new meeting overlapped a planned one, which followed a new new one, followed by another planned one. You get my point. I was ready to start yet another meeting with the peeps who help us run SMB Training and … Read More
Trading RIMM Tomorrow
I had a tough Open today covering two shorts within pennies of their highs and then watching them trade several points lower. The rest of the day was fairly productive as I observed some of the most In Play stocks and called out significant levels to other traders on the desk. But my mood changed from neutral to very positive … Read More
The Transaction Tax Would Destroy Small Businesses
Mike Bellafiore, partner at SMB Capital, was interviewed today by Damien Hoffman from Wall St Cheat Sheet. In the interview Mike discusses the proposed “transaction tax” in Congress that would increase the cost of trading. Read the full interview here.
There’s Always Something On The Move.
If you needed yet another sign that the volatility is low, just look at today’s action after the Federal Reserve rate announcement. Yes, we knew that the rate was going to be steady. And yes we figured that the language in the announcement would be similar to previous ones (Fed plans to keep rates exceptionally low for extended period etc.) … Read More
SMB’s Trading Philosophy – TraderInterviews.com
Mike Bellafiore, partner at SMB Capital, sat down for an interview with Tim Bourquin from TraderInterviews.com. In the interview Mike discussed SMB’s trading philosophy. Mike talks about why SMB chooses to trade “Stocks in Play”, the reasons he teaches traders to make “One Good Trade”, the importance of “Reading the Tape”, and how to spot “Trades2Hold”. Mike also discusses how to making trading decisions based upon intraday fundamentals, … Read More
How Many Trades Should I Make Each Day?
I was talking to one of our trainees today about starting to trade a live account. He said “Steve, I don’t want to make a lot of trades each day.” I told him that he should be looking for the best setups in the stocks he is watching and execute on those trades. That is certainly my goal each day. … Read More