Trading Lesson: Fade Trade $TSLA

 Tesla has demonstrated itself to be one of the very best short term trading vehicles in 2013 (no pun intended). After putting in an all time high above 190 it has presented numerous setups on both the long and short side.This trade began as a “pattern recognition” trade but morphed into a “tape trade” as there was a clear seller on the tape. Traders who develop this skill are able to better manage risk and improve their results.I initiated my short position just below 155 based partly on a pattern I saw developing on the 30 minute chart, and eventually adjusted my “trade management” to account for the identifiable seller on the tape.Profit targets were based prior days’ support and resistance areas and discussed in the video review. Sometimes trades go worse than expected but sometimes the results are much better. Trading is a game of probabilities so we just put positions on and then manage them based on the evolving facts on the ground.I discuss the details of this trade in this video, including the trade management.If you have any questions about this setup, please leave them in the comments below and I will answer them.Are you trading this sort of “fade trade”?  How have they been working out for you?  Tell us your experience or ask questions if you have them and I’ll answer them in the comments below.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 17 years. His email is sspencer@smbcap.com.Ne relevant positionsFind Your Trading Confidence in Just Ten WeekscommentsPowered by Facebook Comments

Can You Momentum Trade Oil Like Our Trainee?

 Our trainee Petr takes a momentum trade in the WTI cdf and makes 5:1 RR. Can you trade like this? Subscribe: http://bit.ly/utraderytMarc Principato, CMT,Risk Disclaimer*No Relevant PositionsTrade on your own scheduleLearn SMB's Unique StrategyTrade Confidently in 6 Weeks commentsPowered by Facebook Comments

A Consolidation Trade ($TDC)

  During SMB’s most recent The PlayBook Checkup with Bella we discuss: A Consolidation Trade ($TDC). This is a basic intraday technical analysis pattern that every developing trader should learn. We discuss:Who cares what $MS thinks about $TDC and how this should affect your trading? A 52-week high is more important than an intraday high in $SPYA news pattern that can lead to a gap fill on the OpenHow to put together an important longer-term technical level with a short-term technical level to improve your win rateSee the slide show of this trade in Power Point SMB PlayBook Template form here.Watch the video of this presentation below.You can be better tomorrow than you are today!Mike BellafioreOne Good TradeThe PlayBookNo relevant positionsFind Your Trading Confidence in Just Ten WeeksDiscover the principles of elite performance and the eightcore topics that have thegreatest impact on yourtrading success.commentsPowered by Facebook Comments

Trading Lesson: 2nd Day Trade ADBE

 Adobe (ADBE) announced their earnings recently and the stock had a big change in price the following day. The stock had heavy volume, which is something I look for to setup a trade for the next trading session. This is one of the easier trades we teach in our training program and it’s called “2nd Day Plays”.After a stock has some type of catalyst, it attracts many large market participants who take positions on the first day. As short term traders we are trained to analyze that price action and then develop a plan of action for Day 2.I like to see the stock pull back from the previous day’s highs to look for a buying opportunity.  ADBE did just that and gave me an opportunity to get long in the stock with a very favorable risk/reward.ADBE did run up on a 5-minute chart after my entry, but the upward energy faded and ADBE began to sell off.  I closed part of my position and had a tight stop to keep any losses small.  I was still looking to see the stock reverse and continue back to the previous day’s close.I ended up closing the rest of my position by hitting my stop and I lost overall on the trade.  It’s important to control your risk and have a trading plan before you enter the trade. I knew my game plan before I opened the trade.  I knew the longer term price action of the stock and where I felt the stock’s support would be and the potential profit in the trade.  I knew before the trade started where I wanted my stop loss and my profit targets to be.  Don’t enter any trade unless you know in advance what you are going to do if the stock gets to specific prices.My risk was small and controlled.  At the same time, I had excellent potential profits.I discuss the details of this trade in this video, including the trade management.These trade setups happen very often and offer the trader an excellent opportunity to make money. This particular trade didn’t work out, but many of them do.  The two lessons learned are:1.     Know what your plan is before you start the trade.2.     Control your losses on the losers so the winners bring in more than you loseI’ll keep doing this trades every time I see them.If you have any questions about this setup, please leave them in the comments below and I will answer them.Are you trading these 2nd Day Plays?  How have they been working out for you?  Tell us your experience or ask questions if you have them and I’ll answer them in the comments below.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 17 years. His email is sspencer@smbcap.com.Steven Spencer is long ADBEFind Your Trading Confidence in Just Ten WeekscommentsPowered by Facebook Comments

Stock Manipulation: Profit From Others Duplicity

 A common refrain I hear from various commentators is the  ”market is rigged” and therefore it is hopeless to make a living actively trading or investing. In this video I discuss two recent situations where I suspected there was trading activity based on “insider information” or advance knowledge of potential large moves and how to trade these scenarios as a short term trader focused solely on price action.If you find this video helpful please share via one of the social sharing buttons at the top of the post. Thank you!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 17 years. His email is sspencer@smbcap.com.No relevant positionsFind Your Trading Confidence in Just ten WeeksDiscover the principles of elite performance and the eightcore topics that have thegreatest impact on yourtrading success.commentsPowered by Facebook Comments