We teach our traders/trainees/community to start thinking about the markets as we do. We make decisions based on three factors: Reading the Tape, Intraday Fundamentals, and Technical Analysis. We ask our desk to find the Stocks in Play. We ask our desk to trade intraday. It is our belief that this is the best way for a new and developing trader to start their career. Why?
1) You trade a lot which builds skill.
2) This is a responsible way to start as your downside is manageable. Too many start in a huge hole at the inception of their career. This makes no sense as this is them at their worst.
3) This is the best way to build a trading foundation as you learn how to prepare, review, size up, find plays that work for you, psychology, Reading the Tape, Technical Analysis, etc.
SMBers are learning to attack the markets in a professional way and as a professional. Along the way, we will expose you to new ideas. Hence the guest speaker series with Brian Shannon and Corey Roosenbloom and Dr. Phil Pearlman and Dr. Steenbarger and Joe Fahmy and Josh Brown just to name a few. Soon we will expose our desk to T3’s technical analysis active trader manual/seminar. Ideas about moving averages, longer time frames, entries and exits based on candlesticks, and much more will be offered. Also, Adam Grimes will expose some trainees to advanced technical analysis principles.
Exposure to these new ideas should be viewed in the context of you building your trading base and keeping these ideas in the back of your head for further gains. First comes you building your base. And then you will take your developed intuition and creativity and add to this base creating your best way of attacking the markets.
But being exposed to these new ideas does not mean be like them, trade like them, copy them. It does not mean “oh smack” I do not do what those guys do so I must tomorrow. It means these are their ideas shared to help you build that stronger base for you that perhaps you can make your own. But let me be crystal clear: if you do not make these ideas your own then they cannot work for you. Co-opt an idea and make it your own. Do not just think you can copy. And do not make the mistake of seeing someone else who makes more P$L than you and concluding that their way is the better way for you. It doesn’t work like that in our game.
It means maybe in time after you build your base you will take new leaps forward expressing an idea from our guest lecture series or continuing education. It means maybe you can co-opt an idea, make it your own and build a stronger base for you. The equation is this:
Building your base + your intuition + your creativity = your best trader.
I hope that helps. And on this train ride out to LI to spend a weekend with my dad, please free to ask clarifying questions. Have a great weekend.
Author, One Good Trade