All posts by Derrick Oldensmith
What’s Different About Apple Right Now
Professional trader Derrick Oldensmith hates shorting Apple (AAPL) because of the massive buyback. But now the stock is in a buyback blackout period. Watch the video below to learn how this has the potential to change how the stock trades: Derrick is a professional prop trader with T3 Trading Group. Click here to get his free ebook to learn more about the benefits of prop trading vs retail! Derrick’s positions as of 1:09pm ET September 24, 2024 Derrick Oldensmith is an associated member of T3 Trading Group, LLC (“T3TG’), a SEC Registered Broker-Dealer & Member of FINRA/SIPC. All trades are placed through T3TG. T3 Live, LLC is a financial publisher that disseminates information about economic, business, and capital markets issues through various media. T3 Live is not a Broker-Dealer, an Investment Adviser, or any other type of business subject to regulation by the SEC, CFTC, state securities regulators or any “self-regulatory organization” (such as FINRA). Although T3 Live and T3TG are affiliated companies by virtue of common ownership, the companies are managed separately and engage in different businesses. The programs that T3TG distributes (including articles, commentary, videos, blogs and social media postings) are for informational and educational purposes only. No one should consider the information disseminated by T3TG to be personalized investment advice, a recommendation to buy, sell or hold any investment, an offer (or a solicitation of an offer) to buy or sell any investment, or the provision of any other kind of investment advice. No one associated with T3TG is authorized to make any representation to the contrary. T3TG provides information that viewers of its programs may consider in making their own investment decisions. However, any viewer will be responsible for considering such information carefully and evaluating how it might relate to that viewer’s own decision to buy, sell or hold any investment. Such decisions must be based on that viewer’s individual and independent evaluation of his or her financial circumstances, investment objectives, risk tolerance, liquidity needs, family commitments and other factors, not in reliance on any information obtained from T3TG. Statements by any person (whether identified as associated with T3 Live, T3 Trading Group, or any other entity) represent the opinions of that person only and do not necessarily reflect the opinions of T3TG or any other person associated with T3TG. It is possible that any individual providing information or expressing an opinion on any T3TG program may hold an investment position (or may be contemplating holding an investment position) that is inconsistent with the information provided or the opinion being expressed. This may reflect the financial or other circumstances of the individual or it may reflect some other consideration. Viewers of T3TG programs should take this into account when evaluating the information provided or the opinion being expressed. Although T3TG strives to provide accurate and reliable information from sources that it believes to be reliable, T3TG makes no guarantees as to the accuracy, completeness, timeliness, or correctness of any such information. T3TG makes no guarantee or promise of any kind, express or implied, that anyone will profit from or avoid losses from using information disseminated through T3TG. All investments are subject to risk of loss, which you should consider in making any investment decisions. Viewers of T3TG programs should consult with their financial advisors, attorneys, accountants or other qualified professionals prior to making any investment decision. The risk of loss in trading equities, options, forex and/or futures can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of leverage that is often obtainable in options trading may benefit you as well as conversely lead to large losses beyond your initial investment. Past results are not indicative of future results. No representation is being made that any account will or is likely to achieve profits similar to those shown. T3 Trading Group, LLC is a Registered SEC Broker-Dealer and Member of FINRA/SIPC. All trading conducted by contributors associated with T3TG on the Virtual Trading Floor is done through T3TG. For more information on T3 Trading Group, LLC please visit www.T3Trading.com.
Continue Reading -->How Derrick Oldensmith Makes A Trading Game Plan
Professional trader Derrick Oldensmith comes into every trading day with a game plan. Watch the video below to learn what his daily research process looks like. Derrick is hosting a free week in his trading room. Click here to work with him and his team of other professional traders! Derrick’s positions as of 9:42am ET July 23, 2024 Derrick Oldensmith is an associated member of T3 Trading Group, LLC (“T3TG’), a SEC Registered Broker-Dealer & Member of FINRA/SIPC. All trades are placed through T3TG. T3 Live, LLC is a financial publisher that disseminates information about economic, business, and capital markets issues through various media. T3 Live is not a Broker-Dealer, an Investment Adviser, or any other type of business subject to regulation by the SEC, CFTC, state securities regulators or any “self-regulatory organization” (such as FINRA). Although T3 Live and T3TG are affiliated companies by virtue of common ownership, the companies are managed separately and engage in different businesses. The programs that T3TG distributes (including articles, commentary, videos, blogs and social media postings) are for informational and educational purposes only. No one should consider the information disseminated by T3TG to be personalized investment advice, a recommendation to buy, sell or hold any investment, an offer (or a solicitation of an offer) to buy or sell any investment, or the provision of any other kind of investment advice. No one associated with T3TG is authorized to make any representation to the contrary. T3TG provides information that viewers of its programs may consider in making their own investment decisions. However, any viewer will be responsible for considering such information carefully and evaluating how it might relate to that viewer’s own decision to buy, sell or hold any investment. Such decisions must be based on that viewer’s individual and independent evaluation of his or her financial circumstances, investment objectives, risk tolerance, liquidity needs, family commitments and other factors, not in reliance on any information obtained from T3TG. Statements by any person (whether identified as associated with T3 Live, T3 Trading Group, or any other entity) represent the opinions of that person only and do not necessarily reflect the opinions of T3TG or any other person associated with T3TG. It is possible that any individual providing information or expressing an opinion on any T3TG program may hold an investment position (or may be contemplating holding an investment position) that is inconsistent with the information provided or the opinion being expressed. This may reflect the financial or other circumstances of the individual or it may reflect some other consideration. Viewers of T3TG programs should take this into account when evaluating the information provided or the opinion being expressed. Although T3TG strives to provide accurate and reliable information from sources that it believes to be reliable, T3TG makes no guarantees as to the accuracy, completeness, timeliness, or correctness of any such information. T3TG makes no guarantee or promise of any kind, express or implied, that anyone will profit from or avoid losses from using information disseminated through T3TG. All investments are subject to risk of loss, which you should consider in making any investment decisions. Viewers of T3TG programs should consult with their financial advisors, attorneys, accountants or other qualified professionals prior to making any investment decision. The risk of loss in trading equities, options, forex and/or futures can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of leverage that is often obtainable in options trading may benefit you as well as conversely lead to large losses beyond your initial investment. Past results are not indicative of future results. No representation is being made that any account will or is likely to achieve profits similar to those shown. T3 Trading Group, LLC is a Registered SEC Broker-Dealer and Member of FINRA/SIPC. All trading conducted by contributors associated with T3TG on the Virtual Trading Floor is done through T3TG. For more information on T3 Trading Group, LLC please visit www.T3Trading.com.
Continue Reading -->Derrick Oldensmith’s Strategy For Earnings Season
Professional trader Derrick Oldensmith is focused on one thing heading into an earnings report – where the stock is currently trading. How a stock moves after reporting earnings isn’t just about whether it beats or misses expectations. Watch the video below to learn what you should be looking at ahead of each report: Derrick is a professional prop trader with T3 Trading Group. Click here to get his free ebook to learn more about the benefits of prop trading vs retail! Derrick’s positions as of 10:14am ET July 17, 2024 Derrick Oldensmith is an associated member of T3 Trading Group, LLC (“T3TG’), a SEC Registered Broker-Dealer & Member of FINRA/SIPC. All trades are placed through T3TG. T3 Live, LLC is a financial publisher that disseminates information about economic, business, and capital markets issues through various media. T3 Live is not a Broker-Dealer, an Investment Adviser, or any other type of business subject to regulation by the SEC, CFTC, state securities regulators or any “self-regulatory organization” (such as FINRA). Although T3 Live and T3TG are affiliated companies by virtue of common ownership, the companies are managed separately and engage in different businesses. The programs that T3TG distributes (including articles, commentary, videos, blogs and social media postings) are for informational and educational purposes only. No one should consider the information disseminated by T3TG to be personalized investment advice, a recommendation to buy, sell or hold any investment, an offer (or a solicitation of an offer) to buy or sell any investment, or the provision of any other kind of investment advice. No one associated with T3TG is authorized to make any representation to the contrary. T3TG provides information that viewers of its programs may consider in making their own investment decisions. However, any viewer will be responsible for considering such information carefully and evaluating how it might relate to that viewer’s own decision to buy, sell or hold any investment. Such decisions must be based on that viewer’s individual and independent evaluation of his or her financial circumstances, investment objectives, risk tolerance, liquidity needs, family commitments and other factors, not in reliance on any information obtained from T3TG. Statements by any person (whether identified as associated with T3 Live, T3 Trading Group, or any other entity) represent the opinions of that person only and do not necessarily reflect the opinions of T3TG or any other person associated with T3TG. It is possible that any individual providing information or expressing an opinion on any T3TG program may hold an investment position (or may be contemplating holding an investment position) that is inconsistent with the information provided or the opinion being expressed. This may reflect the financial or other circumstances of the individual or it may reflect some other consideration. Viewers of T3TG programs should take this into account when evaluating the information provided or the opinion being expressed. Although T3TG strives to provide accurate and reliable information from sources that it believes to be reliable, T3TG makes no guarantees as to the accuracy, completeness, timeliness, or correctness of any such information. T3TG makes no guarantee or promise of any kind, express or implied, that anyone will profit from or avoid losses from using information disseminated through T3TG. All investments are subject to risk of loss, which you should consider in making any investment decisions. Viewers of T3TG programs should consult with their financial advisors, attorneys, accountants or other qualified professionals prior to making any investment decision. The risk of loss in trading equities, options, forex and/or futures can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of leverage that is often obtainable in options trading may benefit you as well as conversely lead to large losses beyond your initial investment. Past results are not indicative of future results. No representation is being made that any account will or is likely to achieve profits similar to those shown. T3 Trading Group, LLC is a Registered SEC Broker-Dealer and Member of FINRA/SIPC. All trading conducted by contributors associated with T3TG on the Virtual Trading Floor is done through T3TG. For more information on T3 Trading Group, LLC please visit www.T3Trading.com.
Continue Reading -->New eBook: The Ultimate Trading Journal
In this business, success and failure are 100% on an individual’s shoulders. You make all your own choices and decisions, which directly impact whether you win or lose. To become a successful trader, you need to develop expertise through practice and constantly improve yourself. Journaling can help you accelerate your learning curve and become successful faster in this business. That’s why I hope you’ll download “The Ultimate Trading Journal” today. When journaling, you review your trades, reflect on your actions, summarize what you have learned, and then lay out things you need to improve upon. That will give you the roadmap you need to build your confidence and get you on the road to sustainable success. Check it out here.
Continue Reading -->Derrick Oldensmith Talks Prop Trading on the “Trading Justice” Podcast
Hit the Play Button to Listen to Derrick Oldensmith’s interview on the “Trading Justice” podcast. Derrick discusses: His unique role as a professional prop trader trader, teacher, and mentor Why he started his own trading desk at T3 What makes prop trading different from retail trading The major advantages of prop trading, like access to firm capital Why leverage in prop trading is a double-edged sword The simple math behind successful trading Where people get into trouble in trading Why getting bored as a trader can lead you down a bad road The best way to expand your toolset without taking too much risk Where successful traders go wrong Why you should be a chart reader first and a tape reader second And a whole lot more!
Continue Reading -->Derrick Oldensmith Interview on “2 Bulls In a China Shop Podcast”
Hit the Play Button to Listen to Derrick Oldensmith’s interview on the “2 Bulls In a China Shop Podcast.” Derrick discusses: What it really takes to succeed as a trader Why this is not a glamorous way to make a living How to learn to trade the right way How he combines fundamental and technical analysis Why his professional kickboxing background laid a strong foundation for trading And a whole lot more!
Continue Reading -->Derrick Talks to The Simcast
Derrick recently visited the team at The Simcast to talk about his strategies and mentorship style. He also gives listeners an inside look at what it’s like to start at a prop desk, plus how his background prepared him to become a trader. Check out a recording of the conversation below! Derrick and John will discuss: How the COVID-19 pandemic changed his trading career His first foray into trading as a kid What happened when he graduated college in the middle of the 2008/2009 crisis How he transitioned from sales trading to prop trading The trading lessons he’s learned from kickboxing
Continue Reading -->Meet Derrick Oldensmith
Derrick Oldensmith is a pro trader and head of T3 Trading Group’s trading desk. And in this in-depth interview on the TIB podcast, you can get to know him. Listen in and learn: What working at 7-11 taught Derrick about money and life How he became interested in the stock market Why he left his sales trader job to join T3 What Derrick loves about trading The lessons he learned from the 2008 financial crisis The hard realization he made when he joined T3 Why making money is a pure numbers game Why money management rules are critical to success This is a fascinating look at the ups and downs of professional trading, so jump in and listen. P.S. Give the video a like and comment to help support the TIB podcast!
Continue Reading -->When to Exit a Winner
When your trade is going well, when do you get out? How do you know it’s time to book that profit? The answer depends upon the type of trade that you’re involved in. I categorize trades into two groups: with the trend or against it. Watch the video or read on below. What is a trend? An uptrend is a pattern of higher highs and higher lows, while a downtrend is a pattern of lower highs and lower lows. If a stock or index is in an uptrend and I’m long, I would be with the trend. If that name is trading down and I’m buying it, that would be a counter trend trade. I have a different plan for each trade when it comes to exiting for-profit. One of the key things to remember about trends in the marketplace is they tend to last longer than anyone expects. It’s a great rule to assume that whatever trend you’re looking at will last forever, until it shows you that it’s changing. 1) With the Trend Strategies When taking a trade that is with the trend on the upside, my reward is theoretically unlimited, as the S&P 500 has trended higher over the course of its entire history. When taking a trade that is with the trend on the downside, the maximum possible reward is just 100%, which would mean that stock goes to $0.00. When you’re with the trend, look for continuation chart patterns such as bull flags and bull pennants, with all of your moving averages (short and long term) sloped upward in the same direction as the trend. Trailing your stop when you’re with the trend, based on the pivots of higher highs and higher lows, can help you maximize your reward. 2) Against the Trend Strategies If I’m against the trend, I often exit on the way up. When I’m looking for a retracement higher to certain points, I like to utilize an 8 and 21 EMA (exponential moving average) to show me technical equilibrium for any stock or market that I’m looking at. If I’m going counter trend and I get a bounce back to the space between the 8 and 21 EMA, that’s usually a great spot for me to book the majority of my position for a profit. Then, maybe I’ll hold a smaller percentage of it — 10 to 25% of my original core holding of that counter trend trade — just in case that retracement actually becomes a reversal. Managing the Position with Trailing Stops I don’t always want to completely exit out of a position when it’s going in my favor. Rather I’d want to maximize my reward by implementing a trailing stop system for a percentage of my core position. A trailing stop system will allow me to slowly raise my stop, locking in more profits over time. Eventually, when that trend does change, I’ll get stopped out of the position for a win. Ideally, you want to give the name as much breathing room as possible to maximize reward, but always keep the proper stops in place. That’s how you can get the unlimited reward I’m always telling my team to focus on with their trading!
Continue Reading -->How to Think About Moving Averages
Moving Averages are NOT Support or Resistance One of the most common mistakes I see from people who are getting involved in trading is they think moving averages are support or resistance. This is not true. Moving averages are just averages. They’re little squiggly lines in your chart that are composed of the average of the last however many bars the average calculation is measuring. For example, a 20 simple moving average is the average of the last 20 candles, or 20 periods, on the timeframe in which you are looking at. While these moving averages are not support or resistance, they can be powerful tools if you use them correctly. For my own trading, I look at an 8 and 21 EMA (exponential moving average). I also look at 20, 50, and 200 SMA (simple moving average) particularly on larger timeframes. Equilibrium (8 / 21 Exponential Moving Average) The space between the 8 and 21 EMA on a chart represents what I call technical equilibrium for the marketplace or that individual stock. If a stock or market has moved far away from its 8 / 21 EMA, I would consider it to be extended from equilibrium. Understanding extension in markets is really important for evaluating risk and proper entry / exit spots. If I’m buying a stock that’s extended, I’m going to have a worse risk-reward and a lower probability of success on the trade. Pivot Points with Equilibrium (Higher Highs & Higher Lows) I also utilize the 8 / 21 EMA to gauge where a stock might create a higher low. For example, a new pivot point to continue a trend. When looking at an extended stock I think, “alright, the stock here is extended because a lot of momentum came in. I should be patient. Maybe a bull flag comes in, which would be more of a time correction that allows those moving averages to catch up.” Once the moving averages have caught up to price, a trade in that name may have a better risk-reward and higher probability of success. SMA (Simple Moving Average) The simple moving averages I like are the 20, 50 and 200 SMA. I use them on larger time frame charts, such as daily and weekly charts. For me, the most important part about the SMAs is the slope of the moving averages. Are they pointed higher, sideways, or lower? Are they crossing over each other? Or are they all telling me the exact same story, such as a rising 20 SMA above a rising 50 SMA above a rising 200 SMA? The simple moving averages tell me the essence of the trend for that timeframe. There are about 20 trading days in a typical month. If I’m looking at a 20 SMA on a daily chart, the direction of the slope of that moving average tells me the nature of the trend over the course of that last month. The 50 SMA measures about the length of a quarter. I call it my intermediate time frame when looking at a daily chart. The 200 SMA measures around a year. This is a really important moving average. It represents the long term essence of the trend for any stock or market. Putting It All Together If I’m looking at a rising 200 SMA, above a rising 50 SMA, above a rising 20 SMA, I know the essence of trend for every time frame is the same. All are trending higher. Generally, if I’m going long an uptrending stock or market, I’ll have a higher probability of success than if I’m going long a stock trending downward or sideways. Again, the key with these moving averages that people need to understand is they are not support and resistance levels. They are tools to help identify trends on different timeframes. If you can learn to utilize moving averages, they can be very powerful for your trading. They can help you understand risk, reward, and probability of success for any trades you take.
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