A Student’s Audit of the SLMC: What It Really Takes

By Sang Lucci Community

By Sang Lucci

We get asked what our students learn in the Sang Lucci Master Course all the time, and sometimes, because we just cover so much ground, it can be difficult to fully communicate. That’s why we asked one of the students in the most recent session of the course to document what he learned in each class, step-by-step. What you’ll see below not only illuminates why we’ve been able to help so many traders breakthrough; it shows what it really takes to be a trader at Lucci’s level!

For context for anyone reading this, I came into the course with years of casual experimentation and curiosity with the markets, but only about a year of real trading experience. I was somewhat familiar with tape reading and options, though far from being able to use them to trade profitably. I found myself without an edge, without confidence, and constantly second-guessing whether what I was doing was right.

Overall, this course was really well put together. I think because of how Lucci can relate complex topics and break things down in ways that are easy to understand, I found it surprisingly easy to learn all about options, tape reading, flow trading, and how it all comes together into this beautiful, comprehensive approach. But more importantly I feel like I got to connect with an amazing trader and teacher, and learn through both watching and listening. I understand why everything happens now and what outcomes I can expect from all sorts of different circumstances. Plain and simple, I feel like I have the tools and skillsets that I need to trade. And the psychology that I’ve learned from this course is priceless. I’ve been able to apply the things I’ve learned in my trading since the course… it’s not always easy, but that’s part of why I love it now, because I have the confidence that I know what I’m doing and I’ve gotten enough results to know that I actually can pull off great trades. 

I hope my notes below help anyone considering this course to make an informed decision: I learned…

Class #1

  • All about the basics of tape reading: bid and ask, Level II, how orders get filled, supply and demand, and how to start using these basics to spot trends
  • How to spot orders that are from a dark pool
  • What a lot of the big players do (algos and non-algos), how they trade, why they do it, and what that means for various strategies I might use
  • Comfortable with order reading (sweeps)
  • About microstructure and special order types: how it works and how I can use that information in my trading (and what parts of it aren’t relevant to me)
  • About opening and closing volume, the key differences, and how to read specifics to make and plan trades
  • How to gauge market sentiment based on tape
  • How to feel my way through the market looking for the move by knowing the right questions to ask myself and how to find the answers to those questions
  • How not to get so discouraged with a loss, and how to feel more confident taking a loss by having a way to learn from every trade

In general, I am a visual learner, so I find it very helpful to see the trades he’s talking about on the screen and the tape that is correlated with the trade.

Class #2

  • When not to trade and how I can determine that for myself
  • Much more about Lucci’s thought process and how he’s been able to approach things to take down such big trades but also scalp effectively.
  • I get how he’s been able to build an accurate “gut feeling” of where markets are going to go and how I can do that myself
  • A lot more about how “Wiseguy flow” and technical levels can be used in conjunction with the tape to form a complete the picture of the trade
  • More about consolidation and how not to get trapped in it; how to avoid getting chopped up in and beaten down by theta (time decay)
  • How other players use market sweep orders
  • How to use the SPY and other indexes to help guide my trades in individual names
  • How the tape can help me understand what market makers are doing and use that to time my entries and exits
  • A deeper understanding of tape reading, especially around watching for specific types of reactions to buyers and sellers
  • How to determine when a big move is coming vs. when it’s a fake out
  • How to determine when to scalp and when to swing
  • The value of not falling in love with an idea but rather to let the tape and your other inputs tell you what to do. The particular way he described it really helped
  • How relative strength of the market can help you determine bias on a move
  • How to use feeler trades to build the foundation for my more general approach and how to glean specific types of information from them

Class #3 Notes

  • How perception can change the price of an option, and a lot about how Lucci’s determines the price of an option without getting too complicated with it
  • How to join the trend and to not pick tops and bottoms
  • How to use overall sentiment and the tape to write puts; what situations to do that in and what situations to avoid
  • I have a much better understanding of how to develop patience with a trade
  • A lot of the tactics that market makers use and how to play against them, and why they do what they do
  • What a lot of the algo’s out there do and how to spot what they’re doing in the tape so I can use it to my advantage
  • How to read activity on the bid and offer to signal whether the next move is up or down
  • The specifics on how to read and take advantage of other players in the game based on watching their moves

Class #4

  • Some ways I can tell if I’m getting shaken out of positions and how I can stop it from happening
  • How to gauge specific movements in puts and how I can use that to help decide if a downward move is going to have follow through or not
  • More about sector rotations: how to spot them and how to use them for different types of trades
  • How to read snap backs to see what other participants are doing and how they’re reacting to it, and what that means for my trade
  • How to mentally put myself in the shoes of the other market participants, see things from their perspective, and then use that as an input into my trading decisions
  • How to read the options chain and integrate that into flow, the tape, and technicals to see expected moves coming together
  • Many of the different strategies with regards to straddles and strangles, and how Lucci uses them
  • About theta (time decay) and how it can affect your option, and a few of the ways I can leverage it to my advantage that we’ll learn more about it in future classes
  • Generally, the experience of interacting with Lucci about trade ideas that other course members and I have and seeing what he says about them, how he evaluates them, has been invaluable

Class #5

  • Even more about how Lucci prices an option via his formula and why he does it that way
  • How perception can affect how premium and volatility and how they’re priced into an option
  • The downsides of going too far out of the money and how to trade options that far out if I want to do it
  • I understand how Lucci’s able to get such a good read on specific stocks by watching the tape and how to do that myself so that I can get familiar with how they move and exploit them accordingly
  • Even more about how to leverage the flow and the analysis in the Steamroom given all the information I’ve learned in the course so far

On a personal note, I’m just continually struck by Lucci’s honesty. He doesn’t bullshit anyone for a second and he doesn’t blow smoke up anyone’s ass. He’s not afraid to tell people where they’re messing up, and that’s making all of us think more about our decisions and analyze what we’re doing in a totally new way. I’m starting to hear Lucci’s voice in my head as I trade, “you herb!” and it’s actually stopped me from making stupid decisions!

Class #6

  • More about how to look at the options chain to determine the perception of the stock so I can see if a move is being priced in
  • A lot of the most important correlations between the underlying stock and the option and how use those
  • How to be patient in a trade and think logically through moves up or down. Being aware of my emotions but not letting them grab the wheel and drive my decisions
  • When to load the boat and when to hang back on size
  • How to determine when I need to just cut my losses and get out based on what the tape is doing
  • A lot more about how to open my mind to new types of trade ideas… how to always keep that open perspective no matter how much success I might be having
  • A few of his processes for generating trade ideas and then the steps he takes to either confirm them or flip them based on specific factors that he’s seeing
  • More about how to understand my style of trading and the difference between how Lucci trades and how other students and pro’s that use this information really successfully approach the markets differently than Lucci

Lucci’s examples from the day’s trading in names like NFLX and PCLN were huge for anchoring these concepts in reality and really breaking down how to apply them,

Class #7

  • How bigger players like funds and institutions act on certain types of moves and how I can make bank on what they’re doing
  • How to alter my trades based on the liquidity in a name and what I have to do differently when trading much less liquid names
  • A lot more about consolidations: why consolidations happen, how to verify that it’s happening, and how to use that to plan trades
  • More market maker tactics and how to read what they’re doing in certain types of market environments so that I don’t get trapped
  • When to swing trade… when to really understand that you’re in a good trade and that you should hold through the pain because the payoff is coming
  • More tactics to read the emotion of the crowd based on the tape, and how to take advantage of that
  • How to nail a big move, including how to take small losses along the way without getting sidetracked by them.  how to know that a big move is going to happen before it’s priced in (and that’s where the money is made)
  • All about dark pools: what they are, why they’re used, and how to read them
  • More about sector rotations: how to track them and how to use them to my advantage

Class #8

  • More about how to spot fake outs and how they can directly affect the market, how they can propel the market higher and how to spot that that’s happening
  • More about how to wait for moves and not just try every idea that comes to my head
  • How to spot chasing and how to spot panics, and more about how to read the emotions of the market and why people are doing what they’re doing
  • A lot more about how to swing trade and perfect my timing for entries and exits
  • A ton about controlling my emotions and be more aware of them. It’s something that’s so important but it’s so much easier said than done.  how Lucci controls his, how he bounces back when he doesn’t (inevitable), and how he uses emotion to guide his trading (not all emotions are bad)
  • How to be realistic about temptation, greed, and humility… Lucci’s journey with all these instincts and emotions, how he’s navigated it, and what I can take away from that
  • How to be more aware of my emotions and how to How to change your mindset and at least be aware of your emotions

Class #9

  • About all the different techniques for selling options; when to do it, how to do it, and what I need to have account wise (margin, broker setup) to do it effectively
  • How and when to use spreads and how they’ll affect my ability to make other types of trades
  • The absolute best types of trades for a tape reader
  • When to let your position breathe a bit and when to keep it tight
  • Different ways of how to exit out of a trade and make sure my timing is spot-on
  • How to avoid trying to make up for mistakes by trading out of them so that I don’t lose even more money
  • How to scrape pennies to add weekly income to my gains and how to use these profits to hedge some risk I can take on directional moves.
  • How to see implied volatility in an option and how that affects the price of an option
  • How to spot the opportunities in a trade even if I missed the initial move in the option
  • How to get into better sync with my emotions and reasons for making a trade, and how to use that to gauge whether I should pull the trigger or not

Class #10

  • How to watch for certain types of follow through in a name and how to flip my position if I see or don’t see certain things
  • The most important things to know and watch if I’m going to hold a trade overnight
  • More about how to decide if it is time to push and when to sit and watch or take a break… how to do the hardest thing for so many traders, which is sit on your hands
  • Why holding puts is so much more difficult and how to address that
  • Why the real move is always masked until the right moment and how to time my entry to hit it
  • How to use straddles and strangles when I don’t have a strong directional read, and how not to get crushed by time decay with these
  • Even more about how to understand my own psychology and how it’s reacting to the psychology of the crowd, the markets, so that I can use what I’m thinking and feeling in all types of environments (or put it aside)

We always go through lots of visual examples of trades he’s taken and setups in class, but today we went through even more than usual which really helped me understand things visually.

Class 11

  • About how to go big when the time is right, both mentally and managing my size in my entries and exits
  • Why price pretty much doesn’t matter in comparison to what the tape is telling you, and why that’s such a hard thing for so many people to accept
  • How to manage my psychology so that I can flip my direction if I take a loss– how to use that loss as a piece of valuable information and flip the trade the other way
  • About how my size can affect the option pricing and how to avoid causing price moves or putting myself on the radar of a market maker that will detract from my trade
  • About some of Lucci’s biggest trades — six figure trades — and how he built into them over a long period of time. How he stalked the trade and why they don’t come around that often
  • A lot more about how flow intersects with everything we’ve learned and just how much information you can glean from the Wiseguy activity tracked in the Steamroom
  • A lot more about timing my entries and exits. This section in particular blew me away… I’ve never seen anyone time their entries and exits as well as Lucci does, so hearing his thought process was really helpful
  • How to keep my thought process simple and how to avoid overtrading
  • More about how to maintain my position and my conviction when I’m in a swing trade, and a bunch of useful strategies I can use to put swing trades on
  • About the psychology that comes along with swing trading compared to momo trading
  • How to maintain my position when I’m building a swing trade and not to just bail at the first sign of profit, knowing that if I’m right I will get paid

Class #12

  • How to block out so many of the distractions in my trading, and I realized that a lot of the things I didn’t think were distractions actually are — looking at my PnL, for example
  • How biases often form for us when we get into trades and how to avoid letting them take hold of my perspective
  • How to tune out the noise and believe in myself.  how not to be afraid to take a position if everyone is against it. Big moves happen when they least number of people expect them to
  • How to face my biggest fears – as a person and trader – and why that can actually impact my trading so much
  • More about how to look into my thoughts and determine if I’m thinking clearly
  • What it really takes to stay in this game long-term and not burnout or get crushed. How to manage my own expectations and treat this as a marathon instead of a sprint
  • How to say no to a trade and watch it go right by
  • Probably one of the most important things he’s taught us: how to really identify what makes me good as a trader. What my source of edge is because of who I am and how I think

Live Tape Reading Session #1

Generally, the experience of watching Lucci trade live is insane. The classes set me up for this by laying the foundation and going through tons of examples but there’s no substitute for seeing it in the live market in front of you.

  • How to prepare for the day by generating trade ideas and then using the tape in certain ways to confirm or remove the idea
  • The most important things to watch in the opening 90 minutes and how to determine whether certain trades will be in play through the rest of the day, including the role of the indexes in this
  • How to know that if you wait you’ll get a better price for the option
  • The nuances of options on Monday’s and how I can take advantage of them, and how to put some trades on that I can use as feelers or build into swings for the rest of the week
  • More about how to look at the spread and determine the lean
  • More about how market makers manage their risk by adjusting the spreads and why that’s important for me
  • From him dictating his thought process of how he could overthink certain things but isn’t
  • A couple strategies for a stagnant market like the one we were looking at on the day of this session
  • When it is a good time to say no to a trade and hold back

Live Tape Reading Session #2

Generally, just watching his actions and listening to his voice is really helpful. His demeanor showed me how professionals approach the market.

  • More about how to prepare for the day
  • More, by watching moves in specific names and looking at their options chains, how to determine where they underlying would need to be to make it worth making a move in the option at a certain price
  • About when and how he limits into positions and when he just smacks the offer
  • Why he took risk off based on something he saw in the tape and when he would put that risk back on
  • When he takes directional trades and when he sticks to non-directional trades
  • When to put on more risk if my strategy is showing me certain pieces of feedback
  • To get at the bigger picture of the market– what’s happening across the board and how I can relate that to my plays in individual names
  • How to see on the tape if I already have an aggressive buyer and determine how aggressive they are
  • More about how to size out of a trade properly

Live Tape Reading Session #3

  • How to trade on the short side and why shorts can be so hard to hold with options
  • How to try to catch a knife, if I am going to take the risk to do it
  • How to read the flurry of activity that goes down in the first 20 minutes and make moves based on it instead of getting caught up in it myself
  • How he plays around with his orders on the bid and offer just to gauge what other people will do and where he can get his entry
  • How to counteract the effects of FOMO
  • How the perception can affect the option pricing even if you are right on the idea
  • One huge thing that I have learned from lucci is to plug around taking small losses until I get a feel and can put the hammer down when I feel right
  • A lot more about the volume in the option, how to read it, and how to incorporate the read into my decisions
  • How to get fills I want and more about why market makers are the way that they are.

Live Tape Reading Session #4

  • How the market is affected by big orders and why spotting them isn’t as easy as it used to be (and how to do it)
  • That more about the games that market makers play
  • How to continue to look for plays even when it seems like there is nothing there, and how sometimes that’s actually where the juiciest trades begin
  • How to let things go — let moves happen — and how to not get pissed about missing it and instead learn from it (and maybe even get in on it)
  • More about how to form an opinion about the big picture of the market and how to use that to guide my trades in individual names
  • More about how to hold through the chop and what to do during the choppy markets to make a smart play
  • When Lucci decides that it’s better to just walk away and not trade for the day, based either on market action or where he’s at mentally
  • How to make sure that my size is in check for the play that I’m making
  • To continue to ask myself questions and what questions to ask myself so that I’m constantly evaluating my trades and my ideas in the right away

 

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Sang Lucci

Sanglucci.com has been one of the leading trading education resources and communities since it's founding in 2010. Sanglucci.com has trained thousands of traders through its unwavering transparency, singular expertise in Tape Reading and options strategies, and it's game-changing partnership with the infamous Wall St. Jesus.

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