All entries by this author

Can You Keep it Down Please? I am Trading

Jul 25th, 2014 | By | Category: Ask Bella, General Comments
  Hi Mr. Bellafiore, Terrific book, thank you for writing it. I have the audio version. I ordered it two minutes after I read a comment from one person saying that he had listened to it six times. Due to my tape / chart reading ability combined with having read Reminiscences of a Stock Operator six times (and other books less so) I was very recently able to achieve a (solid) returns in 60 days through day and swing trading. It was done without leverage or options, and primarily in swing trading stocks under $3.00 which had fallen 80-90%. I bought the positions at their support levels shortly before their going into Read more [...]

Bella Interview on Blog Talk Radio

Jul 25th, 2014 | By | Category: General Comments
Listen to this trading interview with Bella on Blog Talk Radio hosted by Aleksander Danilov of by clicking this link here. Bella discusses: 1) Why he wrote The PlayBook 2) Process: How The PlayBook and the SMBU Performance Center powered by Tradervue helps traders develop a process where they can build from their strengths. 3) Following like-mind traders on StockTwits (@annemarietrades, @alphatrends, @steenbab, @harmongreg for example). 4) The JV with the Kershner Trading Group and the business model: Back experienced traders and take all down-side risk Provide significant downside Offer Read more [...]

This Options Trader is Succeeding

Jul 23rd, 2014 | By | Category: General Comments
I try to offer examples of best practices from succeeding traders and share them with the trading community. It is my hopesuccess.1 developing traders will co-opt some of these best practices and improve their trading. I have another one to share- this one from our options trading desk. One of the options traders on our desk just had his best month and I wrote him a congratulatory e-mail. This trader was taught from scratch by Seth Freudberg, Director of SMB Options, earned his respect from his hard work while training with Seth, and then was invited to trade on our Options Desk. Options traders are fully-backed by the firm- Read more [...]

I Start My Stock Selection Here

Jul 22nd, 2014 | By | Category: in house training
It's officially earnings season. We trade in interesting times. How can you not love the Ackman HLF Dump Summit? Most of us on the desk were trading $HLF and piped into his presentation via NFLX reported and got beat up offering a series of excellent risk/reward trades for the short term trader. HOG got hit reporting shipments will be light for the year.  And there was much more.  It was a day of opportunity. During these interesting times it is important to prioritize trade opportunities. Last week we discussed the best practice of creating a road map for your trading. Continuing on that theme, I thought I Read more [...]

What Do You Need First to Gain Trading Edge?

Jul 18th, 2014 | By | Category: General Comments, in house training
I have been listening to a great deal of the Toddler music channel on Pandora so pardon my lyrics. First comes skill Trading Skill! Next comes edge Trading Edge! Then comes trading profits in your head .....And in your bank! Our firm has edge during Russell imbalances.  I was discussing this strategy in theory with our college training class,  exposing them to the different ways traders can find an edge in markets.  One very ambitious student from China asked, "How do they do it?" This is a perfectly acceptable question.  Or is it? I didn't develop this strategy so I cannot share it.  It's not mine to Read more [...]

Creating a Road Map Helped this Trader

Jul 16th, 2014 | By | Category: General Comments, in house training
I noticed one of our new traders had a day of out-performance.  I assumed this was his best trading day because of his PnL but it turned out it was his second best.  Still he was near the top of the leaderboard with a very substantial intraday PnL for a new trader- heck for all traders. I asked him what he thought of his trading day in my office. He said he was pretty happy. I asked if there was anything he had done that was particularly instrumental in this outstanding trading day.  There was something.  It is a best practice for you to consider. The trader developed a road map before the open.  He wrote down stocks, Read more [...]

A Focus on Immediately Being in the Money Helped this Trader Improve

Jul 10th, 2014 | By | Category: General Comments
I had a conversation with one of the traders on our desk end of month congratulating him on his improved performance and  inquiring on the reasons for it. We sat in my office and I congratulated him on improving from consistently negative to flat for the month.   Come again Mike?  Why is that something for which to congratulate a trader?  I thought the purpose was to make money? Those of you who read my blog are aware that I view consistently negative to flat as a significant step.  It is.  Most never get here (to flat for the month) as a trader.  Granted we want better than flat, but you rarely see a trader go from Read more [...]

How Do I Simplify My Trading?

Jul 9th, 2014 | By | Category: General Comments
Dear Mr. Bellafiore,  My name is (deleted), and I’ve contacted you in the past. One of our conversations ended up on your blog and eventually made it into your book ( Your responses to my inquiries have always been courteous and insightful, so I’m turning to you once again for some more advice. With the full support of my spouse, I have re-entered the world of proprietary trading. I became completely fed up with the corporate world, and I decided that I wanted to try and take control of my life. The last time I sat on a prop desk was in April 2009, and Read more [...]