Here’s what I see from my seat as the managing partner of a proprietary trading desk in NYC with underperforming experienced traders. Add four ingredients to your trades. They do a wonderful job of developing trading ideas. They have many of them and many of them work. But too many of them do not work. And they mostly just trade … Read More
A Tale of Two DOWs
Yesterday, the Dow Jones Industrial Average declined over 250 points while DOW chemical rose over 5%. This was a textbook “stock in-play”. It was gapping higher, the desk identified clear levels to buy from (as mentioned in Trader90 AM meeting and Big Picture Game Plan), and the potential trade back to resistance was greater than the potential risk below support. … Read More
Trade2Grow
Hey Mike, Loved your podcast on chat with traders, huge fan of yours for many years. I was listening to another podcast, and they said “turn off you pNL when trading”. When writing electrical proposals and performing work I am 100% emotionless, never think of money, and never get greedy with customers. Flip to trading, and it’s a different guy. … Read More
What basic trading setups should I learn?
Hi Mike, This is Ember from the Philippines. I read your book One Good Trade and was really inspired. Presently, I am a remote Proprietary Equity Trader from (deleted by compliance). I trade from home in the Philippines. I started to trade at October 2015 and I am willing to pay my dues even for more than 10 years just … Read More
The trading mistake I made
I called out a trader yesterday (Don’t make this trading mistake in Facebook) on a trading mistake and today it’s my turn. Man I messed up in CRUS yesterday. And here’s why. I missed this very important piece of information in Oppenheimer analyst Rick Schafer’s note : As a result, Cirrus will obtain an average of about $5.50 for each … Read More
Do not make this trading mistake
Trader Frequent Flyer was having another solid day on the month. He was up near 2k, which for his level of experience and skill was strong. The trading session ended. He was up near 10k for the month, with a few days to go. He had just closed out his 5th straight profitable trading session. And then Facebook earnings hit … Read More
The edge is not just in the chart
During mentoring sessions after the open with our newer traders, I ask each of them what they traded. First up today was a trader who shorted a failed breakout in ENOC. He likes that chart pattern. But is that simple chart pattern enough to trade this pattern with edge? No. There was more to this trade than a failed breakout. … Read More
Market Edges Come and Go
There are two truths that I’ve observed about trading over my trading career. 1. Trading edges come and go 2. Great traders last For these two truths to exist simultaneously, it means that great traders cannot depend on a few edges that currently work. Mike Bellafiore has said many times before that the most important aspect of success in … Read More