Archive for May 2009

Find the Best Teacher

May 26th, 2009 | By | Category: General Comments, Mike Bellafiore's (Bella's) Blogs

Mike wrote a very thoughtful article for SFO Magazine about how to find the best teacher.  In the article, Mike discusses the characteristics of a great teacher and why it is important to find someone with these qualities when searching for guidance.  You can read the article here.  Feel free to leave comments on this blog.

sfo



Growth

May 24th, 2009 | By | Category: Mike Bellafiore's (Bella's) Blogs
Today is a good day to sit around and think about how we will improve as traders. Between the barbequed chicken, Cavs/Magic game, summer beers, and crazy relatives there is some time to reflect. Back in the day I would be someplace like Hilton Head, with a rental on the ocean, on an immaculate course, thinking about a new club I should purchase to alleviate my slicing. These days, there is the two-year-old birthday party, feasting on salad and veggie burgers, and upstate New York. See how I have grown. Recently, I emailed Dr. Steenbarger about a topic that would be an interesting next book possibility for him: from good Read more [...]


One Trick Pony

May 23rd, 2009 | By | Category: Mike Bellafiore's (Bella's) Blogs
I get too many emails from, I meet too many people who, I hear of too many stories of traders who live off of one play. Commonly this play is as follows: a trader sees a big bid and they step in front or they see a big offer and they step in front. This is my definition of scalping. This is a play that ought to be in your playbook. But it should not be your entire playbook. Let's discuss. I met with an ambitious developing trader recently unhappy with his firm. He reached out to one of our traders and some how figured out how to parlay that into a meeting with me. His records are solid for a new trader. Bright, good background, Read more [...]


Anatomy of a Rip

May 21st, 2009 | By | Category: Steven Spencer (Steve's) Blogs, Trading Theory
I mentioned last week that I would blog the next time I took a rip of more than 1K.  Unfortunately,  I ripped up a lot more than that today.  There were several reasons why I took this unnecessary loss and they were all my fault.  Sometimes as a trader you will take a large loss due to market circumstances.  But the reality is that most times a trader takes a large loss it is due to trading error. My rip today was in MS.  What even makes the rip more painful is that I caught a great move off of the bottom from 10:30AM and was up a lot of money in it.  If you look at the chart below you can see that after a strong move up Read more [...]


Center of the Green

May 21st, 2009 | By | Category: Mike Bellafiore's (Bella's) Blogs
Trading is about skill development and discipline. A huge advantage that intraday traders have over most is our trading skills. Most can't grind it out and make the spread. Most traders can't play the momentum, exit, and then flip their positions. But we are also judged on our discipline. And certain days call for restraint. And we must recognize such days. Today was one of them. When you first learn to play golf, you try and perfect the 150-yard shot. So with a 9 iron you practice at your local range on this distance. And finally you develop this shot. And then you play. But not all 150-yard shots are created equal.  Sometimes Read more [...]


SMB on CNBC HALFTIME REPORT (in the studio)

May 21st, 2009 | By | Category: General Comments, Jeff Tomasulo's Blogs
Jeff Tomasulo, senior trader at SMB Capital, appeared today in the studio on CNBC's Fast Money Halftime Report. This is must see TV. Watch the clip here and leave your comments on this blog. Best of luck with your trading! Don't forget to follow us on twitter. Read more [...]


Let It Breathe

May 20th, 2009 | By | Category: Mike Bellafiore's (Bella's) Blogs
As intraday trader we seek catalysts. By catalysts I mean something that will now make our stock move. And when we find a catalyst we then expect our stock to move immediately. But sometimes we need to let our stock breathe. Let's discuss. There was an epic battle at 42 yesterday in STT. A secondary was announced at 39. Buyers came packing some heat at 42. Sellers were ready with their hand grenades. There was a battle. Who would prevail? Time passed and a few on our desk moved on. There was a whole lot of buying and selling going on at 42 but no moving. There was a fake breakdown to 41.60. There were a few fake breakouts Read more [...]


SMB on CNBC HALFTIME REPORT

May 19th, 2009 | By | Category: General Comments, Jeff Tomasulo's Blogs
Jeff Tomasulo, senior trader at SMB Capital, appeared today on CNBC's Fast Money Halftime Report. Watch the clip here and leave your comments on this blog. Best of luck with your trading! Don't forget to follow us on twitter. Read more [...]