9 Trading Lessons Essential for Today’s Market

BellaBella Daily Update

1. Develop your system to short circuit trades that do not feel right.

What you certainly DO NOT want to do is short circuit a trade based on your feel before developing your system to do so.  That could lead you to prematurely exiting a good r/r trade.

2. Do your Daily Report Card without fail.

Watch: How the Daily Report Card Helped Legend Become the #1 Trader (Prop Firm)

@TheOneLanceB was the #1 trader at a tier one prop firm in back-to-back years.  He shared, in this video, what helped him improve from top ten to #1.

Hint: He did a DRC without fail.

3. Scheduled breaks from trading is essential for your best trading.

4. Immediately develop a specific solution to fix your trading frustration.

5. At the start, trade more, experiment, and then narrow your focus.

This week, one of our interns experimented in a new setup, lost on the trade, and then lamented doing so.  He carped that he got away from what he does best and should not do so.  I responded that I loved him trying something new.  And at the start of your career, we want you experimenting and making mistakes and learning and growing.  After you have been exposed to lots of different ways to trade, and measure your edge in markets, then you can narrow your focus.  Then you can carp about straying too far from your edge.  But, even then, we want you leaving room to expand your PlayBook and growing.  You just will do so with less risk and ensure most of your focus is on what you do best.

6. This is a great market to momentum trade and scalp.

Newer traders may not end up as momentum traders and scalpers.  But those are good skills to possess.  When VIX is elevated these strategies work better and pay more.  And even if you end up a swing trader, these skills will significantly improve your entry and exit skills at a minimum.

Do some more momentum trading and scalping in these market conditions.

7. This is more likely still the beginning of Crypto and not the end.

Our firm has spent considerable resources so that all firm traders will be able to trade crypto, from the firm’s platform.  Traders will have full access to the most heavily traded and opportunistic crypto products.  My sense is this will be some portion of the trading that most traders do at the firm.  My sense is that some traders will want to focus mostly on this opportunity.  They will have a full infrastructure to do so.

8. This is a historic trading environment…still.

Recently, one trader on our desk made ~$1.5m intraday in one trading opportunity.  There is plenty of market opportunity.

9. The market is *now* not open on Juneteenth.

Important disclosures

Mike Bellafiore is the Co-Founder of SMB Capital, a proprietary trading desk, and SMB Training, which provides trading education in stocks, options, and futures. Bella is the author of One Good Trade and The PlayBook. He welcomes your trading questions at [email protected].