Im 18 months into my trading journey, still struggling for consistency and I find these videos really helpful, especially Mikes critiques of the traders entry and thought process. The comment on getting entry as close as possible to the support/risk level was gold. Thanks to both of you for your time and efforts.
Just invaluable coaching advice by Mike. Entries and exits have also been my challenge but what I difference I feel this will make in my trading. Hesitation on my entires and too early on my exits have been the challenge. Thanks for the Lesson Matt and Mike.
I loved your critiques of understanding the added 42 cents of risk hurting the profit loss ratio, and where he could play more from a position of strength. Thanks for the wisdom! 🙏
Mike.....awesome, awesome....fantastic explanation on the Opening Drive.....this is why SMB traders excel....clear identification (pointing with cursor) of the L2 and TS helps significantly. Great voice over. Big Thk you.
Tape analysis: 1) Looking how the stock does at key levels and seeing how the stock react to these levels is it becoming fast slow are the key levels of whole and half being eaten as well on the bid or is it going lower 2) Want to see if the buyers are stepping in or a real wash as well First real pull back after the opening drive : 1) want to see if the stock is strong or weak as well 2) want to enter when the stock pulls back as close to my support area as possible as well 3) especially when I have all the factors going in my favor as well Risk reward: 1 ) Always want to think where my optimum risk reward is as well end of trade: 1 ) saw how the stock could no longer hold a key area Of 17 and went down as such covered the position as well
Bella is undoubtedly good at reading the tape. That boy too! 🤓. Learnt a lot on tape reading in this short video!! How to add to a position with the tape. Look for a support level on the tape that’s holding, watch for it to pull back into that area of support and then bid in front of the area of support, or watch for the tape to slow down and pull close to that area of support , then bid in that area. Definitely will start looking closely in the tape
Funny I interviewed at Google last year and told them they needed to get into home security. Sadly I did not get the offer. But trading is my real passion anyway. Really great coaching. He had the right idea when covering his short he could not see it going down at that moment is when he should have flipped long and sized in. You can tell it is lack of confidence. Waiting and letting a better entry slip away just so he could get confidence in the direction. Seeing the stall on the tape is excellent! Why not flip short? What I need to learn is how to see these opening drive plays at warp speed. This one was slow out of the gate. Its hard when they are moving fast! 👍👍
I nailed this from 13.9 to 17.21 top tick. Was acting really strong and showed no reason to sell, I had an order waiting at 17.19 coming out of that last halt and actually got good slippage for once lol. Out half at top but got caught in down halt for the rest which was dumb cause I seen the drop coming... held a couple seconds too long.
It’s good to see how different traders place trades that they favour or more comfortable with, these are good lessons to create own PlayBook and focus more on type of trades that one is comfortable with and find it easy to understand and trade, the long term technical set up looks like a cup with handle with a contraction to the right side? learning and having this knowledge will only improve selections, win rate and p&l thanks SMB 👍
Thank you for the video, I can use all comments in my own trading. I like this trade. I do like how Mike points out the risk to reward and the consequences of buying late. If so, we are in and can make money but over 100 trades the edge diminishes. Also, I like the logic of the relation of risk against the ATR. I also like a lot the point that the top is being taken out so let us put orders ton the bid to get fulled for the break. The clear words "buy, buy, time to have risk". Also great advice the partial profit taking into these resistance levels as opposed to taking it off completely. From the pre-market intraday chart, the levels of 15 and 17 were very useful though.
Hi Bella, add at 13.7 pullback was more of anticipation than confirmation right? In this case when should we refrain from add? Maybe big volume on pullback, bids being hit at 13.7 etc. will prevent us from adding there?
Thanks Mike. Nice feedback on trade and great trader. It helps to understand the value of your entry when considering the ATR. A nice tape reading video.
This is more order flow trading.....I love pure price action combined with volume price analysis.Tape reading takes lots of screen time... very hard for a beginner to master.
Wasn't his add at 14.10 confirmation? An add at 13.70 feels like it would be "anticipating" a move without confirmation there is a buyer. How would he have added down there? Or do you need to wait for the breakout above intra-day highs?
Was the reason it was a good exit because there was hi volume of Bids around 17 but when those exhausted there wasn't much below it to support the price?
💗💛💚💙 Great video. When I'm in this scenario I put my stop equal to the bottom the candle on the left. Sometimes the momentum & flow is doing a big V-reversal in the book. But as Mike said, if you're not going onside pretty quickly you have to dump it because your risk/reward is heavily skewed when you pay up so much... 💗💛💚💙
@@samw3048 i thought he was buying just hundred shares, not hundred thousands. If so 100000 shares at $14 is $1400000. Where this "kid" got so much money? For the last 6 years I trade my account between $3500 to $9000. Its $5900 right now. To get to $1400000 one would need two (or three) lifetimes. 😁
@@KABKA33BEP he trades for SMB Capital, a prop firm. he's trading firm money. SMB takes on all the risk and splits profits 50/50. great idea to sign up for their free seminar.
Great video and very challenging. If I am day trading I really need to be involded with every aspect of the trade. I have been working on that part. I have the bad habit of entering a trade with a strategy then the only strategy I have after that is that I hope it goes up. I've definitely been working on that.
I'm trying to figure out good exit strategies. I found a great entrance strategy but sometimes I get out too soon, profit, but the stock keeps going and I feel like I miss out. Other times I try to hold on a bit longer only for the trend to reverse on me and a winner suddenly turns into a loser. Keeping support and resistance in mind is the obvious one but I wonder if there are other indicators or strategies.
Hi Mike, I am wondering about where should I downsize when mkt goes against me. For example , I saw an held bid at 3.8 and I jumped in at 3.81 for 1k shares risking 3.6 then it traded higher , 4 selling 20k as breakout price where it was getting hit very fast, so I doubled my position at 4. When it turned against me should I downsize on 3.8 or 3.9 drop? And should I cut half of my risk or 25%?
A breaking news trade is when you are short $3 Million across 4 or 5 names and already in the money 10% but can't see anything saving the market and decide to hold to EOD. Then Alan Greenspan cuts 50 basis points for the first time intra day! Your broker slips your cover on three of those names for 20-25 minutes and you end up down $60k. Now that was breaking news! I am sure you remember it.
He did not get 13.50 for the first entry bc he had a short bias at open. Then he risked 30c to get like 10c reward with full size. Most likely its a FOMO lucky trade. He's not able to add at 14.11 bc he had a bad average price with full size already.
Awesome job Matt (and of course Mike also), thanks so much for doing the video and sharing your insights. Quick question, you referred to $ADT as a low float stock but it has approximately 110 million shares in it's float. I guess everything is relative but not sure what SMB classifies as low float? Also, was wondering what vendor you are using for your Level 2 and T&S, can you let me know, would like to check them out. Great Job - George
Hey Mike. I trade FX.. I was wondering if your book.. One Good Trade would be relevant for me? Also, does SMB have an FX desk? Would love to apply at your firm..
Man this seems like some extreme over analyzing, I guess that’s what separates me from a pro, can anyone recommend a place to better learn the terminologies used in this video? I have a rough idea based off the context they are used but I still need to sharpen my vocabulary thanks
there was a very similar example to the beginning of this trade in NKLA today. news broke premarket. a good opening drive for all the traders that either dont like to trade premarket, yet didnt want to miss trading the stock.
learn 3 trade setups we use at SMB bit.ly/2XnZSyS
These "reading the tape" videos are really helping me come to a better understanding of what's needed to be consistently profitable.
awesome Josh!
Im 18 months into my trading journey, still struggling for consistency and I find these videos really helpful, especially Mikes critiques of the traders entry and thought process. The comment on getting entry as close as possible to the support/risk level was gold. Thanks to both of you for your time and efforts.
Been a year , how’s it going now ?
@@Kyier035 always wondering on things like this, hope he didn’t give up!
@@Kyier035been 2 years, how’s it going now?
Just invaluable coaching advice by Mike. Entries and exits have also been my challenge but what I difference I feel this will make in my trading. Hesitation on my entires and too early on my exits have been the challenge. Thanks for the Lesson Matt and Mike.
Using the tape to figure out support and resistance is one of the best lessons I got from SMB.
Love the no nonsense commentary. Really helps me get my head around working a trade like this. Thanks!
Glad to help 🤝
I like this trader's style. Please feature him more.
yes he did very well
sure thing ben!
I loved your critiques of understanding the added 42 cents of risk hurting the profit loss ratio, and where he could play more from a position of strength. Thanks for the wisdom! 🙏
you are welcome Scott
thx Scott!
Mike.....awesome, awesome....fantastic explanation on the Opening Drive.....this is why SMB traders excel....clear identification (pointing with cursor) of the L2 and TS helps significantly. Great voice over. Big Thk you.
you are welcome
This might be my favorite Mike reaction to the tape 😂😂 *shakes head “Buy!”😂
Tape analysis:
1) Looking how the stock does at key levels and seeing how the stock react to these levels is it becoming fast slow are the key levels of whole and half being eaten as well on the bid or is it going lower
2) Want to see if the buyers are stepping in or a real wash as well
First real pull back after the opening drive :
1) want to see if the stock is strong or weak as well
2) want to enter when the stock pulls back as close to my support area as possible as well
3) especially when I have all the factors going in my favor as well
Risk reward:
1 ) Always want to think where my optimum risk reward is as well
end of trade:
1 ) saw how the stock could no longer hold a key area Of 17 and went down as such covered the position as well
Good example of tape reading, great reminder to always maintain risk awareness and not get up caught in excitment of the moment. Thanks!
thxs for sharing
Bella is undoubtedly good at reading the tape. That boy too! 🤓. Learnt a lot on tape reading in this short video!! How to add to a position with the tape. Look for a support level on the tape that’s holding, watch for it to pull back into that area of support and then bid in front of the area of support, or watch for the tape to slow down and pull close to that area of support , then bid in that area. Definitely will start looking closely in the tape
My guess is that the risk on the adds will be immediately below that support level
Funny I interviewed at Google last year and told them they needed to get into home security. Sadly I did not get the offer. But trading is my real passion anyway. Really great coaching. He had the right idea when covering his short he could not see it going down at that moment is when he should have flipped long and sized in. You can tell it is lack of confidence. Waiting and letting a better entry slip away just so he could get confidence in the direction. Seeing the stall on the tape is excellent! Why not flip short? What I need to learn is how to see these opening drive plays at warp speed. This one was slow out of the gate. Its hard when they are moving fast! 👍👍
well they finally listened
Been trading on a prop desk for a while now, this is the best video I've seen. Amazing insight and analysis of the entry and ads, Thanks.
Overall good trade....love his exits...took proifts on the way up while minimizing his risks...great!!! job...
I nailed this from 13.9 to 17.21 top tick. Was acting really strong and showed no reason to sell, I had an order waiting at 17.19 coming out of that last halt and actually got good slippage for once lol.
Out half at top but got caught in down halt for the rest which was dumb cause I seen the drop coming... held a couple seconds too long.
thxs for sharing
It’s good to see how different traders place trades that they favour or more comfortable with, these are good lessons to create own PlayBook and focus more on type of trades that one is comfortable with and find it easy to understand and trade, the long term technical set up looks like a cup with handle with a contraction to the right side? learning and having this knowledge will only improve selections, win rate and p&l thanks SMB 👍
Thank you for the video, I can use all comments in my own trading. I like this trade. I do like how Mike points out the risk to reward and the consequences of buying late. If so, we are in and can make money but over 100 trades the edge diminishes. Also, I like the logic of the relation of risk against the ATR. I also like a lot the point that the top is being taken out so let us put orders ton the bid to get fulled for the break. The clear words "buy, buy, time to have risk". Also great advice the partial profit taking into these resistance levels as opposed to taking it off completely. From the pre-market intraday chart, the levels of 15 and 17 were very useful though.
Great detailed explanation especially entry and exit strategies.
thxs
Thank you Mr. Bella and Matt for the trade review. Very instructive and enlightening.
Thanks for the video. Quick question here, how are you able to get in and out like that, hot keys? what is your order type?
You need direct access software. No web based platforms.
Hotkey limit orders with maybe a couple cent offset to account for fast moving prices.
yes a series of hot keys with advanced order functionality
Niceee! Love how he had the tape up there. I played it back at 1/2 speed to see that action at the top. Will look out for that✍🏾
Hi Bella, add at 13.7 pullback was more of anticipation than confirmation right? In this case when should we refrain from add? Maybe big volume on pullback, bids being hit at 13.7 etc. will prevent us from adding there?
This video is extremely helpful! Thank you for showing behind the curtains.
Loved the clear use of the tape
thanks!
Thanks Mike. Nice feedback on trade and great trader. It helps to understand the value of your entry when considering the ATR. A nice tape reading video.
This is more order flow trading.....I love pure price action combined with volume price analysis.Tape reading takes lots of screen time... very hard for a beginner to master.
appreciate your contribution Frank
This is a wonderfully structured teaching video.
I see you're using Thinkorswim for your charts..... but what are you using for your level 2?
proprietary technology at the firm Mike
Fantastic video, thanks Bella!
How do you highlight the huge orders in black ?
Awesome video! I see thinkorswim charts, but what is the other platform on the screen? Thanks!
that's out in-house platform for trade execution
Excellent video, great trader, loved Bella's comments.
at around 13 min mark, what is the program he is using on the right side with all the different windows?
Wasn't his add at 14.10 confirmation? An add at 13.70 feels like it would be "anticipating" a move without confirmation there is a buyer. How would he have added down there? Or do you need to wait for the breakout above intra-day highs?
Why do some level 2 prices appear in brackets in these montage windows? Are these people shorting or covering? I cannot find any info about this…
What software/platform is he using for the tape? I hate the tape provided by tos
it's our own inhouse platform but there are others out there like lightspeed which are similar
Absolutely love it🔥🔥🔥🔥🔥🔥 thanks Mike 💪💪💪💪💪💪💪
gr8 to hear
Was the reason it was a good exit because there was hi volume of Bids around 17 but when those exhausted there wasn't much below it to support the price?
Excellent analysis help here by SMB Capital! THANK YOU!
you are welcome Neil
My entry would b in the 3.7...n risk to 3.50s(20cents) downside stop n my take proit 14+ ...30cents upside take some off n the rest over 14?
nice comments on the entry points
fantastic team work ....
thxs Shawn
💗💛💚💙 Great video. When I'm in this scenario I put my stop equal to the bottom the candle on the left. Sometimes the momentum & flow is doing a big V-reversal in the book. But as Mike said, if you're not going onside pretty quickly you have to dump it because your risk/reward is heavily skewed when you pay up so much...
💗💛💚💙
Also, it looked like on that quick pullback at 14.75, could we have added there or not, because of the 15 resistance?
I like how Mike tore that kid a new one about saving .40 cents.
@@samw3048 i thought he was buying just hundred shares, not hundred thousands. If so 100000 shares at $14 is $1400000. Where this "kid" got so much money?
For the last 6 years I trade my account between $3500 to $9000. Its $5900 right now.
To get to $1400000 one would need two (or three) lifetimes. 😁
Jeff that is not me tearing into someone
@@mbellafiore19 I 100% believe you! Ha. I picture Nick Saban tear-into when Bella tears-into.
@@KABKA33BEP he trades for SMB Capital, a prop firm. he's trading firm money. SMB takes on all the risk and splits profits 50/50. great idea to sign up for their free seminar.
I'll bet he'd have a thing or two to say about a lot of my trades. lol
great stuff sir
thank you
Awesome review. Reasons to buy and add and also to sell are really insightful in this one. Thank you for sharing.
Great video and very challenging. If I am day trading I really need to be involded with every aspect of the trade. I have been working on that part. I have the bad habit of entering a trade with a strategy then the only strategy I have after that is that I hope it goes up. I've definitely been working on that.
This was really helpful. Thanks guys.
Sterling Purdy awesome
Thanks for the informative content.
you bet
What would you have bid on the first pullback after it broke the range?
Thanks for this video, helped a lot. Can I ask what SMB uses for order flow? It seems like it’s the same software for all these videos.
we have a proprietary software we use at SMB - Gr8 Trade
Mike do you prop trade in the Philippines?
I like the video and how you explain the 2 difference plays.
you are welcome!
I'm trying to figure out good exit strategies. I found a great entrance strategy but sometimes I get out too soon, profit, but the stock keeps going and I feel like I miss out. Other times I try to hold on a bit longer only for the trend to reverse on me and a winner suddenly turns into a loser. Keeping support and resistance in mind is the obvious one but I wonder if there are other indicators or strategies.
Maybe a trailing stop could help you on that or find an indicator and backtest it. We think the tape is the best indicator to get out
Nice trade. Like Mike's commentary on the add. Good stuff n thanks.
yeah that Mike guy is not bad
Looks like most of his attentions on bid is that right?
enjoyed this video. Top quality
Glad you enjoyed it
Solid video! Thanks!
of course
Hi Mike, I am wondering about where should I downsize when mkt goes against me. For example , I saw an held bid at 3.8 and I jumped in at 3.81 for 1k shares risking 3.6 then it traded higher , 4 selling 20k as breakout price where it was getting hit very fast, so I doubled my position at 4. When it turned against me should I downsize on 3.8 or 3.9 drop? And should I cut half of my risk or 25%?
One Good Trade, Thank you mike for the analysis
Amazing video, what is the standard or average risk reward that you allow your traders?
Mike is Gangsta, in a good way.
TrumpCorp. 👊
loving this break down!!
awesome
Tag this video with "reading the tape" so when people search for reading the tape videos this will show up!
gottcha
We added to the reading the tape playlist on youtube
Good reading the tape lesson
gr8 to hear
A breaking news trade is when you are short $3 Million across 4 or 5 names and already in the money 10% but can't see anything saving the market and decide to hold to EOD. Then Alan Greenspan cuts 50 basis points for the first time intra day! Your broker slips your cover on three of those names for 20-25 minutes and you end up down $60k. Now that was breaking news! I am sure you remember it.
I do remember that.
very valuable lesson!
He did not get 13.50 for the first entry bc he had a short bias at open. Then he risked 30c to get like 10c reward with full size. Most likely its a FOMO lucky trade. He's not able to add at 14.11 bc he had a bad average price with full size already.
Thanks for sharing your views
you bet
What software is he using for his L2?
i have same question. can someone respond?
where do the smb guys get news?
we use trade the news service
SMB Capital thank you!
Awesome job Matt (and of course Mike also), thanks so much for doing the video and sharing your insights. Quick question, you referred to $ADT as a low float stock but it has approximately 110 million shares in it's float. I guess everything is relative but not sure what SMB classifies as low float? Also, was wondering what vendor you are using for your Level 2 and T&S, can you let me know, would like to check them out. Great Job - George
Hey Mike. I trade FX.. I was wondering if your book.. One Good Trade would be relevant for me? Also, does SMB have an FX desk? Would love to apply at your firm..
it would be. I hope it adds value to your trading.
Love your videos!
Thank you Dalton
Thanks for this!
you are welcome
What software is being used in TS AND L2?
proprietary at the firm
Kinda wish i can get coached by Mike
thxs Marcus
I need more tutoring on entering and existing trading FOREX
Strike while the irons Hot!!...good trade..explains the Tape well.Learned alot.
Keep em coming Mike!
Have nice afternoon!!
will do
thx razzy
Hitting the tape?
he got talent
When things move as fast as they do on an opening drive, what's the best method for order entry?
Hot keys! And a fast broker.
you get used to the speed with screen time. what you see as fast at the start becomes much slower.
Thanks
:)
I enjoy listening to SMB Capital. I always learn a lot, but seriously were is the diversity - like the women?
Man this seems like some extreme over analyzing, I guess that’s what separates me from a pro, can anyone recommend a place to better learn the terminologies used in this video? I have a rough idea based off the context they are used but I still need to sharpen my vocabulary thanks
Investopedia has an entire online dictionary of market terminology. Very useful in getting me started.
there was a very similar example to the beginning of this trade in NKLA today. news broke premarket. a good opening drive for all the traders that either dont like to trade premarket, yet didnt want to miss trading the stock.
🤟🏽🤟🏽🤟🏽💣
😱💪☝️👍❤🔥
2 pockets on that shirt!?!
"F" bomb yeah, its my dude "Killer"
This is why I trade by myself...I don't want this guy as my boss lol
I enjoy listening to SMB Capital. I always learn a lot, but were is the diversity - like the women?
Good content, super boring presentation