All entries by this author

What would you tell your younger trader self?

Jan 19th, 2017 | By | Category: General Comments
As I write, I am headed to Austin, Texas to train the newest class for our partners at The Kershner Trading Group.  We train the new traders down there as a part of our JV (joint venture) with KTG. I will be training these new traders using The SMB Foundation, Part I of three parts of our training. Today in our conference room, I surveyed some of the more experienced traders at our desk on what they would tell their younger trader self if they began Foundation again.  7 ideas blossomed.  Let's share them here to give you thoughts on how to improve your trading, whether new, developing or even experienced. 7 tips Read more [...]

3 ideas to improve waiting for your trades

Jan 1st, 2017 | By | Category: General Comments
Yesterday I wrote about the #1 trading frustration of top traders on our prop desk. (#1 issue top traders want to fix in 2017 on our prop desk.) Today let's offer 3 ideas to solve this frustration: 1. Journal your progress on waiting for setups.  When are you successful waiting for setups? When are you early to enter and why? Patterns will emerge, when you are tracking this specific goal.  A better understanding from tracked data on this issue will help you improve. For example, many traders are too aggressive trading on Mondays.  They are so hyped up to show the market how they will improve on Monday that they Read more [...]

#1 issue top traders want to fix in 2017 on our prop desk

Dec 31st, 2016 | By | Category: General Comments
It's the end of the year, and time for trading business plans for 2017 from the traders on our desk. When viewing the trading plans of our best traders the issue that repeats the most to fix in 2017 is........ Waiting for the setup! These are highly profitable traders, and even some seven-figure traders. These are experienced traders who have shown a history of success and consistency of edge in different market environments. Repeatedly the issue most top traders on our desk struggle with is forcing trades. There can be a fine line in some cases from seeing the trade then putting on size and forcing the trade. Read more [...]

Why did I make this trade ($MGM)?

Dec 13th, 2016 | By | Category: General Comments
I made a trade in MGM today, and instantly self-talked: "Uhm, why I am in this trade?" It was not a trade that I trade well. It is not a trade that fits my personality. It is not a trade that extenuates my strengths. Why? Why? Why? We make progress as traders when we stop making trades that do not work for us. In this case, it was so tempting to lay some risk into the gamers as they were reacting well and there was a substantial news catalyst behind the idea (see below). Here is the trade I made: The saving grace was that I did not trade the idea with size, and my stop was uber tight. But the whole Read more [...]

Two ways to make more in OPHT

Dec 12th, 2016 | By | Category: General Comments
I gave a Junior Trader a hard time in our review after the close for not holding a winner longer.  In all fairness, I should do the same for my trading.  There are two areas where I could have traded OPHT better, consistent with trading that makes sense to me. I like trading stocks like OPHT.  They had horrible news in a very important drug for them (see below).  This breeds a LOD opportunity for my trading system. The intraday chart pattern set up very nicely, with OPHT unable to trade below 5.85, nor above 6.10. I made some money trading OPHT today.  But I need to do two things better when trading such Read more [...]

A trick to trade bigger

Dec 11th, 2016 | By | Category: General Comments
"If you can't sling around 80k shares than why bother?"- Trader Anonymous On the desk this past week one Senior Trader hit 80k shares for a scalp and a few junior guys giggled at seeing a trader take such size. It was a scalp. And it was a scalp in a stock under $2. So let's put the size in perspective. But it does help illustrate an idea, a trick, I have observed has helped successful traders trade bigger. I have seen trading bigger with large size in cheap stocks help traders, who control their risk, trade bigger in all of their positions. I have written in The PlayBook about a better way to trade bigger.  But Read more [...]

Trading lesson learned from a large loss

Dec 9th, 2016 | By | Category: General Comments
I am proud of a trader on our desk. He got stopped out in FNSR.  In a trade that he should not have made.  The trade is too fast for him. (Learn more about trading edge in this video.) He violated his stop loss. He got caught like a deer in headlights as the trade went against him. That is a pretty tough down move for a stock that appeared to have good news before the open. Bella, why are you proud of this trader?  He appeared to do so much wrong. He learned very valuable lessons from this trade, as he specifically communicated to me in a closed-door review. This trade does not fit his personality. Read more [...]

It’s never just patience

Dec 3rd, 2016 | By | Category: General Comments
Often I hear traders decry their lack of patience.  If they were only more patient, they would win. From my seat, there is more to add to these thoughts of trading frustration. You might hear commonly on a trading desk, "I JUST need to wait for my levels."  Again the idea is if trader just waits for his levels he will start winning.  This in itself is not sufficient.  Trader must also add trades that work for him off of levels.  Internally we encourage traders to judge every level on a scale of 1-10.  Trader must define the levels worth trading off of.  Trader must develop their system that works best with their talents Read more [...]