I ripped it up. what now?

Jan 5th, 2013 | By | Category: Mike Bellafiore's (Bella's) Blogs
Share on StockTwits


Hi Mike,

It was a pleasure listening in on your webinar yesterday. Your book has been a great motivation, coming from the US Army I appreciate the clean-cut “straight to the point” approach; I’m looking forward to The PlayBook (March, I believe?). At 28 years old, I’ve been at the markets for only 2 years now; its a big obsession of mine to say the least. Unfortunately, after getting my degree in chemical engineering I realized I loved the markets more and most probably no trading firm would hire me without a finance degree so, I took it upon myself. I took a big rip early 2012 and decided to take myself out of the market, rethink my strategy, and do further research before going back to it. I’ve been reading alot; your book being the latest. After all the different readings and research, I’ve started incorporating price volume profile to identify supp/res and time volume to see where the “big guys” are getting in at into my strategy. Anyway… So, on to two questions I had if you could please answer.

As much as I’d prefer to day trade, my work hours wouldn’t allow it. So, I’ve been trying to incorporate “the tape” into multi-day swing trading. I really agree with your theory on it giving you an even better feel of the market. Do you think it would make a difference? Taking into account I will be holding these positions overnight or at least for the time I’m at work.

Also, what would you think the best strategy would be in my case? Always buying on retrackments? I’m not sure if buying/selling into supp/res would work for multi-day positions; or should I in-fact try this?

I appreciate any other insight you could provide.

Thank you for all your help,

@mikebellafiore

In my next book The PlayBook, in a section subtitled “There is always a market tuition”, I eviscerate the idea of starting a trading career without proper training.  You read on trading forums “paying for training is a waste”.  Unfortunately, you are yet another example of why that is not accurate.  You never see the hundreds of emails written to me, and people like me, like yours.  I wonder if one of the biggest advantages to being properly trained is not taking a “huge rip” and all the money saved for so not doing.

Ok so let’s leave the past in the past, but I thought your start could be a lesson for those who might follow.

So I love, just love, your thought process here of finding the proper time frame FOR YOU.  The first step in your trading career is to determine whether you love trading.  Next you must determine which products and time frame is best for you.  Exposure to different types of trading and products is a great idea.

“But Bella that will take me so much time to figure out.”

My response, “Where are you going?”  It will take you three years of training and trading to become a pro trader.  Trading is not a quick path to riches.  It is a game of skill that must be cultivated through purposeful practice, critical feedback and repetitions.

Swing trading is a wonderful pursuit for you.  How do you use tape reading to find excellent risk/reward swing trades?  Find the Stocks In Play.  On Day One find the most important infection points.  The place where most of the volume is being done and the big boys are fighting.  When the stock moves away from these HUGE inflection points start your swing trade.  That is one trade set up worth you trying to make your own.

GMan developed a Pullback Trade on higher time frames for our training program, The SMB Foundation.  I will not give away the secret sauce.  But GMan looks for outsized moves on heavy volume, waits for the stock to pullback, resume the direction of the outsized move, and then enters.  You can trade this set up on any time frame.

I hope that helps.

Thxs for attending our webinar series The PlayBook.  Tell your trading friends about this series please.

Mike Bellafiore

One Good Trade

Tags:
smb newsletter
Options Risk Disclaimer    Forex Risk Disclaimer

1. SMB TRAINING is NOT a Broker Dealer. SMB Training engages in trader education and training. SMB TRAINING offers a number of products and services, both electronical (over the internet through smbtraining.com) and in person. SMB TRAINING also offers web-based, interactive training courses on demand.

2. The seminars given by SMB TRAINING are for educational purposes only. This information neither is, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities. You shall be fully responsible for any investment decision you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.

3. This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by SMB TRAINING or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs.

4. SMB Training and SMB Capital Management, LLC are separate but affiliated companies.

5. No relevant positions

6. Please note: Hypothetical computer simulated performance results are believed to be accurately presented. However, they are not guaranteed as to accuracy or completeness and are subject to change without any notice. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since, also, the trades have not actually been executed; the results may have been under or over compensated for the impact, if any, of certain market factors such as liquidity, slippage and commissions. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any portfolio will, or is likely to achieve profits or losses similar to those shown. All investments and trades carry risks.

Log in | 86 queries. 1.181 seconds.