A trader struggles with added risk

February 11th, 2017 Here is an anecdote from our proprietary trading desk in NYC. A consistently profitable trader (CPT) shot me an email this week to chat about struggling with a recent bump in share size and risk.  He felt he had taken a step back with his trading after being given the opportunity by the firm to take a few steps forward with his newfound share size and risk. His recent struggles: forcing trades forcing size with trades hitting bids to enter short trades because he could unease with the new numbers on his PnL anxiousness This CPT had experienced this before with recent bumps.  So we chatted about a Read more [...]

A loud coaching session on the desk

February 9th, 2017 Yesterday we had a loud, unscheduled coaching session with the newest traders on our desk.  There were raised voices and language not suitable for network TV. By my count this was the third time these newest traders did not meet an acceptable level of AM preparation.  I am not suggesting they did not prepare.  I am not suggesting they did not compile many trading ideas on our AM Ideas sheet.  I am suggesting they missed a few trading opportunities that they should not have because it was not on their AM Ideas sheet. One trader carped about a missed 2nd Day play in KORS.  What are you complaining about in real-time Read more [...]

A solution to improve your patience as a trader

February 8th, 2017 Dr. Brett Steenbarger, the Coach K of trading coaches, generously visited our firm today and spoke with our traders.  I asked him to tackle four issues during his discussion: I want to take my trading to the next level If I could just wait for my setups If I could just stop taking lesser trades Define the competitive trader I wrote about the first three issues in my blog post yesterday, We are all working on that on our trading desk as well. But when you have the Coach K of trading coaches grace your firm, you ask him to share his thoughts on these vexing trading issues. The discussion was fascinating, Read more [...]

Win Percent is Overrated!

February 8th, 2017 Let's look at one of my recent trading sessions. It was a low win percent session, but the benefits of reading the tape kept me in the drivers seat the entire session. Read more [...]

SMBU’s Options Tribe Webinar: Gareth Ryan of IUR Capital: Harvesting premium with $SPX options

February 8th, 2017 This week, Gareth Ryan of IUR Capital returns to the Options Tribe to focus on applying a 1x3 setup for premium extraction on equity index options using both weekly and monthly options. Read more [...]

We are all working on that on our trading desk as well

February 7th, 2017 Yesterday a 30 year market veteran, who has been a part of our trading community for years, stopped by to visit.  He has been struggling with his trading and felt something was just missing.  He wasn't sure exactly what.  His visit and our discussion about his struggles became so interesting to me.  This retail, developing trader was struggling with the same issues on our desk, even among our successful traders. He said three things about his trading that I hear guys on our desk say.  In fact, I hear these from many guys on our desk, even our best traders.  What was most interesting to me, was the three things this Read more [...]

Nothing wrong with skipping a trade

February 7th, 2017 In this video Seth Freudberg discusses how low and high volatility environments can drastically change the risk/reward for options traders. He compares an iron condor trade in both low and high volatility situations to show the impact. Read more [...]

SMB at The TradersExpo New York 2017

February 6th, 2017 SMB will present at The TradersExpo New York 2017.  You can sign up to ATTEND FREE. Mike Bellafiore will present February 27: Seth Freudberg, who runs our Options Desk, will present as well. Last year Mike presented and then stuck around to answer questions. We hope to see you at The TradersExpo NYC 2017. *no relevant positions   Read more [...]