I have observed two different paths to improved trading consistency for active traders. Camp 1- Positive on most trading sessions, with minimal drawdowns relative to profitability Camp 2- Middling around, controlling risk, and then catching largely profitable trades Most traders fall into Camp 1 of daily and systematically churning out profits. They keep their risk low. Their gains are more … Read More
How to think about Reading the Tape
I received this question from an SMB DNA Student on Tape Reading and will answer in this blog post. Bella, I am working on documenting what I should be looking on the Tape and came up with a list after reading your 2 books (some of them are the same observation). My first question is whether I miss something: Also, … Read More
Weekend learning lessons for traders from SMB – August 11, 2018
Working on your trading game during the weekend is a terrific way to improve. Here is the best from SMB this week, filled with learning lessons, to help your trading. A trade that few retail and independent traders know about but that most pros profit on These are three things that could help 7 values for your trading career A … Read More
This is trading discipline
A junior trader at the firm has found trading discipline. Do you agree? He wrote: Overall thoughts: Implementing a new rule today of sitting on my hands until 10am. It felt pretty strange missing out on the action on the open especially on ROKU, but I made this new rule for a greater purpose because I am a disciplined trader now. It … Read More
This is what a *very* promising developing trader looks like
I am going to share what a *very* promising developing traders looks like. I will do so by sharing his Daily Report Card. Notice how he judges his trading, thinks about his trading, is working on the right things, and is intensive in his efforts. This is a trader to copy if you are a new and developing trader. His … Read More
Weekend trading lessons from SMB: IPOs, Breakout Trades, RVOL, Earnings Season, and more
The weekend is a terrific time to work on your trading game. 1. Working on your IPO game is worth consideration, particularly in such a strong market. SONO was one of the better trades of the week on the long and short side. One developing trader sent me his Trade Management from his SONO IPO PlayBook. 2. One SMB YouTube … Read More
The weekend is a time for study and preparation for the next trading session
The weekend is a time for study and preparation for the next trading session. On our desk, one experienced trader, who went (naked) short into TWTR earningss, reviewed this trade with another veteran firm trader. This other trader expressed the same trade with options and thus limited his risk. The trader who was naked short made more, but recognized the … Read More
SMB trading lessons for the weekend
The weekend is a wonderful time to improve your trading. We hope some of the videos below give you some concrete ideas and trading setups to improve. SMB Goodness How to become a Successful Tader: Lecture at Indiana University How to use technical analysis more effectively with a trade setups from our prop desk The One Low Risk Setup Everyone … Read More