Posts Tagged ‘ trading course ’

How do I start as a trader?

Mar 7th, 2017 | By | Category: General Comments
Recently I visited Pace University investment club to talk about the life of a proprietary trader.  We make an effort to reach out to college trading clubs and college investment clubs and meet their members.  Some of our best traders have come from these clubs.  Also, college students rarely get to interact with a professional trader so sharing our experience is helpful. At my presentation for Pace a sharp member asked, "How do you recommend we get started trading?" It is a great question.  I have written about this extensively in The PlayBook, but let me offer an outline here: Read, read, read about markets Read more [...]

The danger of the overconfident trader

Feb 12th, 2017 | By | Category: General Comments
Yesterday I wrote about a trader struggling with added size and risk.  In seeking a solution for this trader one possible area of focus was overconfidence.  How does it happen?  Why is it dangerous?  What can we do to combat overconfidence? You trade well.  You are seeing screens well and the market is trading in a way that allows your strengths to produce outsized PnL.  Your firm gives you a bump in size and risk.  Everyone around you sees you slaying the market and comes over with the fist bumps and giggles.  On a prop desk, you get followed around more by traders engaging you in your trading.  You are the BMOD Read more [...]

A loud coaching session on the desk

Feb 9th, 2017 | By | Category: General Comments
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 [...]

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

Feb 7th, 2017 | By | Category: General Comments
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 [...]

5 Lessons from the Prop Desk

Jan 31st, 2017 | By | Category: General Comments
I was grateful to be asked by my friend, JC Parets (@allstarcharts), to present at Chart Summitt 2017. My mandate? Share 5 lessons from the prop desk. As always, I love to include anecdotes from traders succeeding on our desk to teach. And I did so again here in this online presentation. My 5 lessons from the prop desk were: 1) My favorite setup to trade is a Changing Fundamentals Trade. 2) My favorite new setup to teach is a wedge pattern with a Stock In Play. 3) Scalpers, who Read the Tape at an advanced level, can make real money. SWang's path to High Performing Trader is an example from our desk of how. But perhaps Read more [...]

I like this trading pattern in Mattel ($MAT)

Jan 26th, 2017 | By | Category: General Comments
I like this trading pattern in $MAT: a) stock gapping down b) stock with a negative news catalyst c) fight on the tape where the seller wins d) holding below VWAP e) no longer term technical support in sight f) staircase stepping down visually on our charts g) hold short for a real move We have this pattern today in MAT. MAT gapped down. It had terrible earnings: There was a huge fight on the tape at 27.45, where the seller won. It is holding below VWAP, which is 27.33. The next longer term technical support level is not until near 26ish. The chart is visually appealing. The point Read more [...]

A trading strategy newly stressed on the prop desk

Jan 25th, 2017 | By | Category: General Comments
A tight wedge pattern for Stocks In Play is favorite trading strategy newly stressed on our proprietary trading desk. Two chart examples of this trading pattern were seen just yesterday with ATI: and CSX: I prefer when these wedge patterns appear in a Stock In Play- something with a news catalyst behind it. Breakouts from these wedge patterns work best with these patterns when increasing volume enters the stock. I prefer buying these patterns when they are holding above VWAP. My observation is not enough active traders utilize this strategy.  Many developing and new active traders should emphasize Read more [...]

Competition at a prop firm fuels increased PnL

Jan 22nd, 2017 | By | Category: General Comments
People often ask ne the value of trading at a prop firm.  And there are many value adds that a prop firm brings to a trader, but I want to focus on one powerful performance driver. Competition! When SMB first formed a JV with the Kershner Trading Group our younger traders were in awe at the PnL numbers of the legacy KTG traders.  There were/are some of the best traders on the Street.  It gave them inspiration to be better.  It gave them confidence that they could make multiples more of what they were.  They were exposed to some strategies that they could co-opt with their strong trading skills to add PnL.  They saw Read more [...]