Archive for November 2012

Two Pics As A Post

Nov 29th, 2012 | By | Category: Steven Spencer (Steve's) Blogs, Trading Lesson
ANF November 14th 2012   GMCR November 28th 2012 Steven Spencer is the co-founder of SMB Capital and SMB University and has traded professionally for 16 years. His email is [email protected] No relevant positions Read more [...]

Forex Beginner Enemy #1: Random Trades

Nov 27th, 2012 | By | Category: General Comments
By marcp | View this Toon at ToonDoo | Create your own Toon As short term forex traders, we are exposed to a great deal of price noise since we usually watch time frames that are 15 minutes or less. We are constantly developing our ability to measure when the probability of achieving our potential return is greater than the risk that it presents. What helps us refine this skill and simplify the relative analytical process is our analytical process and trading criteria. That all sounds great, but what happens if you don’t know what any of this means? Many new to the trading world are not aware of this important framework and Read more [...]

What I Learned From The Best Trader at Citibank

Nov 25th, 2012 | By | Category: Bruce Bower, General Comments, Trader Development, Trading Lesson, Trading Psychology
In my senior year of college, I hit the jackpot. No, I didn’t win the lottery. I did even better-- I got the job I wanted in the markets. Let me repeat: *the* job. Note: the lesson is that if I can do it, then anyone can! Ever since I was 14, I knew that I wanted to be a trader. One day, I was in my dad’s office and pulled a book off his bookshelf about famous investors—and discovered a world that I barely knew existed. The stories of making great fortunes through one’s intellect drew me in and I was hooked. Ever since then, I knew that I wanted to be a trader. In college, I naturally looked for trading Read more [...]

A Trading Question from India

Nov 24th, 2012 | By | Category: General Comments, Traders Ask
Hi Mike,  I am Nikhil from India, i am a trader trading commodities , i am writing to you as you are an experienced trader , i have only few months of experience trading "live" and around 7 years experience of observations, I developed a crush on the markets when i was only 14! Anyways i want to know how do you cope up with  Greed,Fear,Hope & Regret. In my trading i have managed to conquer fear by accepting probabilities  , More often than not its greed,hope and regret that  kills me by reducing profits or sometime even shows a loss. I have multiple systems for multiple market conditions BUT they are all discretionary Read more [...]

The November Bearish Butterfly Example – John Locke

Nov 21st, 2012 | By | Category: General Comments
November was a great opportunity in which a trader could have deviated from the core guidelines on the bearish butterfly to enter a week early, 63 days before expiration; instead of the normal 56. This is because the market had been in an extended uptrend and on September 14th had a very large move up. The following hypothetical trade was put on as an 850 put butterfly with 50 point wings when the market was at approximately 864 which was only 14 points behind the market instead of the usual 20 to 25. This was because the unusually low volatility and skewed market conditions created a Delta/Theta ratio problem for the 840 Read more [...]

Your trading power lunch

Nov 21st, 2012 | By | Category: General Comments
Hi Mike, I had read your book and found it really educational as well as being very fun and entertaining to read! Thanks so much for generously sharing your experience, and also for the really great blog as well as all the videos from Steve. I have a question I was wondering if I could get your thoughts on. I saw a powerpoint you shared on your blog on your preparation and realized that the actual trading is done during the open and close only (from 9.30am to 11am and 3pm to 4pm), if I did not read it wrongly. As someone taking her baby steps in trading, I was wondering if you would advise spending more time watching the screen Read more [...]

Forex and Pizzerias?

Nov 20th, 2012 | By | Category: General Comments
You have all heard the business analogy used a billion times in the trading world. And in case you haven’t, it goes something like this, “If you want to do well at trading, you must treat it like a business.”. Then they go on to cite some business examples and you pretty much get the rest of the idea. So why don’t new traders follow through on this idea? And how do you go about treating forex like a business anyway? It’s not like you are selling pizzas, or is it? Let’s think about a guy who wants to start a pizza joint. There are tons of them in New Jersey. How does he start? First he has to be confident enough Read more [...]

Do not say Practice

Nov 20th, 2012 | By | Category: Mike Bellafiore's (Bella's) Blogs
I end most emails with: "Keep working on your trading game."  We teach our traders to do the daily work each day that helps them improve.  They are training to become consistently profitable traders (CPTs).  Their ultimate goal is to become a your best trader (YBT). Apparently I could use better words to motivate my traders. Dan Coyle, author of the Talent Code and the blog with the similar title writes that we should not use the word practice as coach and mentor.  It is not understood in the field of performance science why some are more motivated than others.  Some can practice for hours daily and never lose their drive Read more [...]