In this morning’s AM Meeting I discussed a recent shift in my approach to trading momentum stocks as we have seen signs that bottoms are forming. In the second half of the video I share my intra-day trading plan for YELP: where it made sense to get long based on recent price action as well as a potential failure area to initiate shorts.

By carefully studying price action we are able to formulate trading plans with favorable risk/reward ratios which greatly increases our margin for error. Pay close attention to the video and then compare it to YELP’s actual trading pattern for the day.

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 18 years. His email address is: [email protected].

Steven Spencer is currently long CLDX, CROX, ESRX, FB, GOGO, LQDT, PLUG, MMM, NFLX, PLUG, SCTY, SODA, TWTR,  WAVX and short AKAM, KO, P, UA.

Learn the skills necessary to identify and manage trades like these in our 10 week mentoring program. Click on banner below for details on next session in May 2014.

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