Archive for March 2009

Tuesday Morning Fun – Excessive Celebration

Mar 31st, 2009 | By | Category: General Comments

On our desk we frown upon excessive celebration after making one good trade. Many get in an excited mental state which causes them to make several bad trades in a row. One of our traders found this link this morning. This is clearly an example of excessive celebration. Wait for the score at the end of the clip.

Enjoy. Happy trading.

Be Like Tiger

Mar 30th, 2009 | By | Category: Mike Bellafiore's (Bella's) Blogs
Tiger Woods won Bay Hill for the second consecutive year with a dramatic putt on the 18th green. It is a privilege to watch him work. We can all learn a great deal as traders from him. On "Pardon the Interruption" today an intro leading into this story asked- How does he do it? Well below is how he does it. Below is a sample day of his practice routine. Many talk about wanting to be great traders. And many wish to be a great golfer like Tiger. Wouldn't that be cool? You would have a private jet, a supermodel wife, all the money in the world, and access to anything you desired. But seriously, how many are willing to pay Read more [...]

Hard Work Pays Off

Mar 30th, 2009 | By | Category: General Comments, Steven Spencer (Steve's) Blogs
We asked about 8-10 of our core traders to work on their skill development during the past two months. These are guys who had been trading live anywhere from 8 to 16 months. They had all previously demonstrated a high level of profitability. But the market environment changed and they had to adapt. They had developed some bad habits because they began their trading careers in the middle of a crazy time period. Young traders who should have been making 300-500 a day were making 3-5K. They started to believe this job is easy and spent less time working on their skill development. This lack of focus and overconfidence came Read more [...]

Percentage Returns for Day Traders?

Mar 29th, 2009 | By | Category: General Comments, Gilbert Mendez's (Gman's) Blogs
A couple of days ago I received an email from a blog reader inquiring about my performance for this year. And often times we are asked during interviews what kind of returns we generate. Almost every day I see on Facebook and some blogs people posting their percentage returns for a particular stock. Individual investors among others judge their performance by their overall percentage return on their portfolio. We as day traders do not use this metric. Let me explain. As active intraday traders we place many many trades. Personally, on a very volatile day I can put on as many as 250-300 trades. For me to try to add up all the Read more [...]

Survive and Advance

Mar 27th, 2009 | By | Category: Mike Bellafiore's (Bella's) Blogs
I heard on the Street that many day traders struggled in December and January.  I know there were some on our desk who were disappointed with their results.   Over the years I have been offered data from the market that I was not going to succeed as a trader.  I was offered this data when I first started (starting down $36k to start my career), and I am offered this same data periodically during every trading year.  In the spirit of March Madness I offer a thought for you to ponder.  The good trader during these lows just tries to survive and advance. I am very proud of my desk.  Some individually were offered data that Read more [...]

Self Aware

Mar 26th, 2009 | By | Category: Mike Bellafiore's (Bella's) Blogs
Before the Open I was pissed.  As a partner sometimes I miss the days when I could just roll into the office and trade.  I look forward to the day when the guys we teach are running the desk.  And I can just come in and trade.  And I hope I get to sit all the way in a back row, with the young guys making fun of me, perhaps calling me the old man, and watch them make chops everyday.  But we are not there yet. So today before the Open I had to make sure we were prepared for a video shoot, consider how to best respond to two sensitive emails, prepare for the Open, check what our new class was learning, answer my regular email, Read more [...]

I Am Not Making the Same Mistake Today

Mar 25th, 2009 | By | Category: Mike Bellafiore's (Bella's) Blogs
As traders we search for repeating patterns.  The last two trading days have offered the same pattern. Levels were violated into the Close and the market trended into the Close.  Financials could be bought or sold in the direction of the trend and held into the Close.  Let's discuss.  Yesterday into the Close SPY traded between 81.20 and 81.50.  We broke SPY 81.20 around 3:45 and trended down for the rest of the trading day.  Today into the Close SPY 79.50 was our trendline.  Just before the Close we traded sharply down towards 79.10.  I thought this move was too steep and advised a trader to Close out AMB at 12.75.  My Read more [...]

Sometimes It’s Just That Easy

Mar 24th, 2009 | By | Category: Mike Bellafiore's (Bella's) Blogs
Often intraday traders struggle understanding the difference between a Trade to Hold and a short term trade.  Most trades that we make are short term trades.  But every intraday trader needs Trades to Hold.  And you ought to have a list of these trades that are best FOR YOU.  Let me offer a suggestion of a Trade to Hold for you. The market has been up over 22 percent recently.  Yesterday we were up 7 percent.  Yesterday Geithner unveiled his plan to help the banks purge their toxic assets.  The next logical step is for the Street to wonder whether this plan will work.  I am not a fundamental trader, but I think we need Read more [...]