All entries by this author

Your Head is Fine But Your Strategy Stinks

Apr 1st, 2014 | By | Category: General Comments
One of our very bright new traders asked to chat about trade psychology. He feared his needed help and wanted to seek my advice on a trading psychology coach. Many of our traders work with psychology coaches. The results are often very positive. I asked the trader to stop by my office for a chat to see if his issues were one of psychology or strategy. It turned out they were issues of strategy. Bella: Why do you think your issues are psychological? Trader: I have trouble holding my conviction trades. I tell myself to hold them no matter what and then I end up cutting them. Bella: You will not sell your positions no Read more [...]

Let Me Help Save You 50K

Mar 31st, 2014 | By | Category: General Comments
Mike, I am only thru day 4 of your 10-day beginner lesson plan, so forgive me if you have covered this in the 10-day course or The PlayBook, which I will start this weekend, but do you have any advice for newbies on certain  investment (trading) vehicles to stay away from until we are weaned so to speak? I am thinking gold-miner ETFs or stocks with a lot of slippage. I am thinking such make a 5:1 setup difficult for an intraday plan. It may have been in The PlayBook, but I read it so fast, I may have missed it. I am a long time investor(occasionally temporarily(bull market) successful), turned swing trader who has always Read more [...]

SMB Trade of the Week: PLUG

Mar 23rd, 2014 | By | Category: Mike Bellafiore's (Bella's) Blogs, Reading the Tape, SMB on TV, Trade of the Week
Mike Bellafiore, author of the “trading classic” One Good Trade and The PlayBook, talks about his SMB Trade of the Week in $PLUG. This stock was highly in-play this past week, presenting some great trading action which the desk was able to take advantage of. Highlights from this trade: 1) There were many variables involved in this trade - the big picture, technicals, reading the tape, intraday fundamentals and intuition. 2) A tweet from Citron was the news catalysts that triggered a significant move down in the stock. 3) Topping action was seen in PLUG which turned into the real short setup, below the 10.80 level. 4) Read more [...]

Trading in a State of Flow

Mar 20th, 2014 | By | Category: SMB on TV, SMB Video Blogs, Trader Development, Trading Lesson
Mike Bellafiore, co-founder of SMB Capital, spoke to students at Pace University about trading and the need to start early while they’re in college if they want to get an edge in trading. In this short clip Bella discusses the concept of being in a state of flow. Flow by Mihály Csíkszentmihályi is a must-read book. A state of flow occurs when you become so involved in something that time seems to stand still. You are present. Do something that makes sense to you. Think about this idea when you are trading. To read more about SMB’s college trading programs, click here—and enjoy the video! You can be Read more [...]

What Comes Next for the Profitable Trader?

Mar 8th, 2014 | By | Category: Mike Bellafiore's (Bella's) Blogs, Traders Ask
Hello again, Mike. I have a couple questions for you. First question: How do I overcome psyching myself out of the layups? I'm working to overcome an interesting challenge. I'm faking myself out of trades, or not taking them because they seem too obvious. It's right on the boundary between a) trading my plan and taking my signals and b) predicting. My inclination is to just take the signals with the correct risk. Just because it's obvious doesn't mean it won't work. I will be very careful however to not fall into thinking that's I've all of a sudden "mastered" anything. I think it's just indicative that the road map that Read more [...]

I Am Not Becoming as Good a Trader as I Expect Fast Enough

Mar 8th, 2014 | By | Category: General Comments, Mike Bellafiore's (Bella's) Blogs, Traders Ask
Hi Bella, I've been making some very steady progress since doing the DNA program last year. My monthly metrics show incremental improvement, and I've been enjoying putting in the work each and every day. Joining the SMB VTF has been a huge benefit, and communicating regularly with some of my DNA group has also been very beneficial. Today I encountered an accidental experiment for myself that provoked me to consider my recent trading and was wondering if you have the time to comment. First, I need to set the context. I feel I'm becoming much more consistent with my trading and building a foundation from where I can begin to Read more [...]

A Lesson from a Failed Trader (for Now)

Mar 7th, 2014 | By | Category: General Comments, Mike Bellafiore's (Bella's) Blogs
Trading is a very difficult sport. The representation of trading within the Financial Media Entertainment Complex is sensationalized and is intended to first entertain. Trading is a skill. You must build skill, then your PlayBook, and then you will be able to navigate yourself toward becoming a Consistently Profitable Trader. It's not a game of guessing, no-edge predicting, IQ, luck, false "conviction", or faux über confidence. It's the perpetual search for a slight edge with trades that make the most sense to you and you can manage in real time. Good luck saying that about trading on TV. This trader below got some of his start Read more [...]

SMBU Trading Tip of the Day ($VSI)

Feb 25th, 2014 | By | Category: General Comments, Trade of the Week, Trading Lesson
In this SMBU Trading Tip of the Day, Bella, author of the “trading classic” One Good Trade and The PlayBook, talks about the importance of execution with an example in Vitamin Shoppe (stock symbol $VSI). Highlights from this trade: 1) You can turn a very good trade into a losing trade with poor execution. 2) Trading is a skill. 3) Market "calls" are not as important as trading skill. 4) Watch Mike "call the bottom" in $VSI in real time and time-stamped on SMB Real Time, and then honestly discuss a trading execution error that kept him from optimal gains. 5) Pro traders mess up all the time. We hope you Read more [...]