Archive for May 2017

I just need to eliminate my ehh trades

May 24th, 2017 | By | Category: General Comments
Last night, I was reading the review of one of our traders, Trader A, who wrote, "I just need to stick to my plays that make me money (ETRM, TWTO, GLYC) and just faze out those ehhh ehh trades, I will become very consistent and very profitable." To Trader A, I responded, " When u say get rid of ehh trades be more specific. My PlayBook is abc (specific variables that make up the trade) My antiPlayBook is 123 789 2334 trades (specific variable that define the trade) Specific, specific, specific." Said another way, I do not understand what I want to faze out my ehh trades means.  What are your ehh trades?  If you do Read more [...]


Trade to your strengths…..no really do this

May 23rd, 2017 | By | Category: General Comments
It is a bit of a trading cliche now to "trade your strengths".  As a trader, one gets tired of reading these trading maxims. Hugh Kimora, Trading Heroes, said this well for traders in his recent post here: But the vast majority of trading books out there are targeted at the beginning trader. They pretty much repeat the same old trading maxims, ad nauseam. “The trend is your friend” (not always true), blah, blah, blah. Seriously.  Blah, blah, blah.  Not to bore you, but "trade to your strengths".....no really do this. One difference, about our blog and my writing, is that I am sharing what pro traders are experiencing. Read more [...]


Traders telling me One Good Trade is helping their options trading

May 22nd, 2017 | By | Category: General Comments
One of the great rewards from writing One Good Trade are the positive unintended consequences.  One of those is how much the book has helped traders other than equities day traders.  Let me offer two examples. Today at lunch, I sat with an income options trader, who shared his trading breakthrough was reading One Good Trade.   This trader had never applied the principles of One Good Trade to his income options trading, started to, and then found trading success.  The largest reason was because the trader had protected trades not working in the past.  Trader added to a losing position because this was best for the original Read more [...]


In Options Trading, Risk Management must always come first

May 16th, 2017 | By | Category: Free Daily Trading Video
In this video, we discuss why it is more important for a trader to follow risk management rules than to be guided by technical analysis if a choice must be made between the two. Read more [...]


The power of Team Trading

May 12th, 2017 | By | Category: General Comments
  Last night Team SWang, a collection of traders with unique skill sets that trade for firm, met for drinks and food to discuss ways that they could improve.  They are one of the top teams at our firm, based on PnL and improvement. Their team leader, SWang, encapsulated how Team Trading can help traders: "I didn't know a team could help my trading so much."  Full stop. SWang credited many traders on his team for helping him make more: One trader on his team was a go-to for information on an inefficiency strategy One trader on his team captured shorts at the best price for him One trader built filters Read more [...]


WEBINAR MAY 10th – Live Mentoring with a succeeding retail trader on sizing

May 9th, 2017 | By | Category: Free Daily Trading Video
Learn how to size properly during a live mentoring session with a retail trader who has surpassed 100k in trading profits.  This succeeding trader is struggling to increase his size.  Mike Bellafiore offers mentoring to help this trader reach the next level. Read more [...]


The trading exit is not what you want but rather what it should be

May 9th, 2017 | By | Category: General Comments
A trader read yesterday's post Expectations poison good trading and remarked: I would like to focus on this savvy reader's observation: "I've sometimes used the standard of what I WANT the market to do. (how ridiculous is that!)" Well.... from my seat it is not too ridiculous at all.  I have been guilty of this.  I have seen profitable traders guilty of this.  I have seen many experienced traders particularly guilty of this.  It is a common trading mistake. So the good news is you are in good company making this trading error. But the proper exit is not what you want, but rather what the exit should be. For Read more [...]


Expectations poison good trading

May 8th, 2017 | By | Category: General Comments
What is the market doing?  And how can I participate, while controlling my risk/reward?  Those are constructive questions to ask, while hawking markets. Even profitable traders can forget to focus on these questions. I had a conversation with a top trader, with whom I work, who recognized he was projecting expectations into this trading.  His month was off to a slow start.  It could have been better.  But he was getting in the way.  This trader thrives by being aggressive, but he also needs to be patient. This trader had thoughts about how markets would trade before and after the French election. This Read more [...]