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A favorite trade of active successful traders

The Low Float Reversal Trade is a favorite of the active trading community.  It is a favorite of the best retail active traders.  It is a favorite of many large proprietary firm traders.  Here's why:

Low Float stocks are not as competitive as other stocks, and thus easier to trade.
When they reverse, the downmove is substantial and fast, with profits realized immediately.
When they revers

A note from the prop desk

This African Proverb above presently sits on our whiteboard, just outside the trading bullpen, on our trading desk.  It encapsulates the advantage of trading at a proprietary trading firm, and helps us raise questions about what we want to be as a trader.

Let me offer five examples from the desk this week to illustrate this point.

1.

How to Trade Earnings Season

In this video Mike Bellafiore discusses 6 keys to trading earnings season. Read more [...]

Stop Calling it Options Income Trading

In this video Seth Freudberg discusses why he has a problem with the term options income trading. Find out why! Read more [...]

The Best Setup for New Traders

What is the best setup for new traders to trade? A Changing Fundamentals Trade!

With a Changing Fundamentals Trade, one day the fundamental strength about the name is substantially different than just the day before. These trade setups outperform the market. They trend intraday. They can trend for 1-3 days for those of you who are swing traders.

SMBU’s Options Tribe Webinar: Options Tribe Member Cat Miles Presents: “The Little Old Lady Trade”

This week, Options Tribe member Cat Miles makes her debut presentation to the Options Tribe commun

2nd Day Trade: One of the easiest trades to learn

A 2nd Day Trade, is a trade we developed that not only has edge, but is easy to learn and trade.

We train traders from beginner to consistently profitable and then high performing trader. As a firm we cannot just teach trades with edge to our new and developing traders. Some trades with edge are too hard from them to understand and execute at the beginning of their career.

Happiness Precedes Trading Success Webinar

Many traders believe they will be happy after they become profitable.  In fact, first comes happiness, which then can dramatically propel elite performance.

Enjoy the Webinar!

*no relevant positions

Read more [...]

Using VWAP to gain a trading edge

MACD
Bollinger Bands
RSI
Stochastics
SMA
EMA
Parobolic SAR
and on and on and on

It must be very confusing for the new and developing trader to find technical analysis tools to gain a trading edge.  It must be very disappointing for new traders to learn that on their own most technical indicators do not work.

But technical indicators can be constructive.  One that is very help