Archive for April 2012

This is What a Significant Day of Trading Looks Like

Apr 27th, 2012 | By | Category: Mike Bellafiore's (Bella's) Blogs
Sent to me from an SMB Trader after the close. Hi Bella, A truly significant day for me, in terms of personal achievements. 1) I was never as big as I played today Last night I was very pissed off about myself. I saw so many occasions where I should have been much bigger but I didn't. I was being a wuss. I changed that today. I prevented myself from using "1" and "2" on the keypad. On the open I only pay or hit 300 shares / lot and on my best trades, I tiered 400 shares / lot into the trade. As I mentioned yesterday, there were many fellow traders I have to learn from. Sammy is capable of taking on huge risks and hold Read more [...]

What Do You Do When You Hit Your Loss Limit?

Apr 26th, 2012 | By | Category: Trading Psychology
Over the past 10 days, there have been two occasions where I hit my daily loss limit. Sounds like a tough stretch, but on a net basis it's actually been positive thanks to some other good days. Mind you, I'm generally a disciplined trader, and in a dozen years of full-time trading I have broken my discipline countless times but have never truly gone on tilt where it's account life or death. That said, I do not have a broker-set cutoff. That's where you specify a dollar amount, which when hit will lock you out of making more trades. It's still your account and you could call in and override that I suppose, but it's at the Read more [...]

Follow Up to the AAPL Credit Spread

Apr 25th, 2012 | By | Category: General Comments
This post is another in a series that we will be publishing over the next month , tracking the hypothetical performance of broken wing butterfly trades selected by Greg Loehr of Last week I introduced the idea of using a broken wing butterfly for AAPL, entered into for a 50-cent, as an alternative strategy to a regular put credit spread which could have theoretically been entered into for the same 50-cent credit.  All other risk, reward, break even and percentage attributes were identical for both simulated positions. Remember, both of these trades were simulated with the options expiring this Friday, Read more [...]

Comparing Ron Artest & Your Trading

Apr 24th, 2012 | By | Category: Trader Development
It's time for Episode 4 of When The Bell Rings. In this edition, we're talking about something that's paramount to your success as a trader. It's a mindset - something that requires intentional planning and not a fly by the seat of your pants mentality. A weekend sporting event prompted this particular lesson, although the topic always applies to trading.  Just as in sports we see the mood intensify around the playoffs, it's that way in the markets every day. I hope you get a lot out of this installment.  Run time is 4:26. Jeff White Read more [...]

Free Webinar – Reduce the Huffyness and Puffyness in Your Trading – Trade What’s Working on This Market

Apr 23rd, 2012 | By | Category: General Comments, Gilbert Mendez's (Gman's) Blogs
Please join Gman on Thursday, April 26th at 4:15pm EDT in a free webinar: Reduce the Huffyness and Puffyness in Your Trading - Trade What's Working on This Market. Gman as always will take questions at the end of the presentation. Please sign up here. We hope you can join us. Read more [...]

What behavior should a prop firm reward?

Apr 21st, 2012 | By | Category: General Comments
After the close one day this week I encouraged our traders to CALL OUT awesome potential trading opportunities.  Shark called out SXCI into one close and the firm and individual traders caught a very profitable trade.  I got our Floor Manager into ILMN for an opening drive play at the start of the week.  He sent me an email of thanks.  The trader to my right got me into GILD on Thursday for a solid trending short trade.  Of course then there was GMan who got us all into HGSI.  Ripper 🙂 The highlights of my talk went like this: If you are shy, don't be If you talk in a low voice, speak up Don't be scared to call Read more [...]


Apr 20th, 2012 | By | Category: General Comments
Here are two comments made from two SMB traders in their daily review sent to me after the close.  Both harm their results by trying too hard.  Do you do this? I am slowly becoming less and less content with just making $$$$ (note: SMB cannot talk our PnL because of compliance reasons) and calling it a decent day. I need to really push harder so those $$$$ days become $$$$ days. But in the last week, when i started to push harder after im already up $$$$ i always end up giving a lot back and then........ Now the problem today was that I wanted to push the close too hard and I really overtraded a lot… it seems whenever Read more [...]

A Different Look at AAPL Credit Spreads

Apr 20th, 2012 | By | Category: General Comments
This post is another in a series that we will be publishing over the next month , tracking the hypothetical performance of broken wing butterfly trades selected by Greg Loehr of A week doesn't go by when I'm not asked a question about selling a put spread (credit spread) on a particular stock, especially before earnings when the implied volatility is typically higher than normal.  Take Apple for example.  Earnings come out next week, the volatility is high, and selling a put spread is a high-probability trade.  Now forget the fact that a vertical spread actually reduces the exposure to the volatility so Read more [...]

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