Copy this trader

Feb 3rd, 2012 | By | Category: Mike Bellafiore's (Bella's) Blogs
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A decent day for me to start the month of February.


I have experimented a lot of new trading techniques today, and added more elements to my trading. For example, trading a high beta, in-play earning stock like AMZN. In fact, 1/2 of my daily P&L was generated from AMZN today. 178 was the pre-mkt level we had discussed in the AM meeting. AMZN was weak, gapped down, high volume. However, 178 held nicely, and I felt I could risk 10-15c to make 1pt in AMZN. I got long 178.01, and sold AMZN into 179. Stocks like AMZN wouldn’t be something I look to actively trade at this stage of my career. However, if I see a clean level being held, and intraday chart looks nice, I felt I can put on some risks.

Another new element I have added into my trading is after-hour trading. I traded QCOM after hour. Stock is strong, gapped up above 52wk high. My trade was buying into momentum, and selling into strength when slowed. There was a lot of risks since the spread was quite wide, so I only traded 100 shares to begin with. Once I get a hang of after-hour trading, I can begin to take on more risks.

In addition to the above mentioned, I have also tried overnight swing trade. In fact. I’m currently long 100 shares of RENN at 5.05 against 4.89. RENN had sold into strength last 2 days. Volume came into 5 today. After-hour RENN supported 5 level when news on Facebook filed its IPO. This is a sympathy play that I plan to sell into the gap up tomorrow.

Definitely adding some new techniques to my trading.

I received this email from one of my favorite developing SMB Traders.  We can learn from his work.

Take notice of his internal push to step outside of his comfort zone.

Notice how he is working to add plays to his PlayBook that make sense to him.

Copy his emphasis on daily improvement.

Follow his hawking of social media stocks, such as RENN. (We are going to do a webinar on the top 20 social media stocks on 2/13 before I head to Singapore for a trading presentation.)

Watch how he focuses first on controlling his risk with these new trades.

Applaud his nerve to step into premarket trading with select plays.

This is a very well taught trader :)

What do you like about this piece of his daily above?

Bella

One Good Trade

no relevant positions

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  • BlockTrader228

    Controlling risks and taking baby steps are very important for developing traders. Be thirty, but know your limit. Good work. Thx for sharing this Mike!

  • Pravin Singh

    Hi Bella, When are you coming to Singapore? would definitely like to attend what ever you are presenting. Pls let me know. Thanks.

  • Bella

    I will be doing a one day seminar on 2/18 in Singapore. I will post on the blog all the details. Should be fun.