A few weeks ago a developing trader on our desk sent me his trading review for the day. He had traded at least 15 stocks and was negative in nearly all of them. I responded: There is no reason for you to trade more than 8 stocks. Set that as a rule. You have to see the big picture and … Read More
This is a trader’s fault
I received this trading recap from an SMB Trader: I love these types of days where I can keep my tickets really low and keep 95% of what i gross. For some reason when I trade from home, i don’t over trade and am able to keep my tickets really low. maybe because i have other responsibilities when i stay home like … Read More
A Quick Lesson in Tape Reading (ESRX)
I was long ESRX. It had gapped up on positive news. The first moves on the tape in the stock were positive. I liked the move above the open high. I liked the way it moved away from prices. I liked that above 56.50 provided a clear entry if it held above. The idea was shared on SMB Real Time: … Read More
The Market Discriminates Against the Over-thinker and Ill-prepared
Hi Mike, Never wrote you, thought I would try. Had a question. In much of what I see, read, etc., there seems to be a focus there on recruitment and somewhat of a preference to younger people as new traders on your prop desk. PLEASE note that I am not looking for an age discrimination claim here, lol. It’s just … Read More
Why buying a stock at a higher price can be better
I received this review from a really solid young trader. There are two important trading lessons in his thoughts. Can you spot them? Biggest regret today: not using the information I collected on ITMN as a short. I was watching above 17, I had a long bias, but I chose not to buy it because of what I saw. The … Read More
Where would you have sold?
I received this email last night about an excellent risk/reward opportunity in PM. The SMB Reader below is asking all the right questions. But I ask you for a fun exercise. Where would you have sold? Hello mr. Bellafiore, Thank you very much for sharing your trades and ideas in SMB blog. I am reading it every day and it … Read More
One Good Trade ($PLCM)
I struggled with RVBD. I struggled in LRCX. Same with CREE. And ABT. And BAX. My EBAY trade did not work out as I expected. Nor CRUS. I was sitting in my office a few minutes ago talking to a frustrated mentee saying: “I cannot seem to make money in anything.” “Others around me seem to be making money except … Read More
Free Webinar 10/6: Your PlayBook- Setups that you can make your own
Join us this Thursday for a free webinar with Mike Bellafiore, author of the “trading classic” One Good Trade at 4:15 PM EST. Mike will discuss some trading set ups that you can make your own. More importantly he will focus on the proper thought process for such trading plays. Questions from attendees will be answered at the end of … Read More