From SMB Intern to Consistently Profitable Prop Trader (Live from Stony Brook U)

@SperoTrades presents his journey from SMB Intern, to struggling trader, to thinking of quitting, to Consistently Profitable Trader.  He does this all live from his former investment club at Stony Brook U.  Not too long ago, Justin sat in the same seats as these college students listening to prop firm co-founder (me) teach the career of prop trader.  Now here he was as a Consistently Profitable Trader sharing his experience, at his former college, and to his former investment club.

The path to Consistently Profitable Trader has not been without struggle, uncertainty, perseverance and some good fortune- the present market.   This is a real, honest, thoughtful account of a trader’s journey from a real trader, at a real firm, who learned from real traders, and made real progress.  How many times do you watch a trader’s presentation where he talks about his real thoughts during his development of quitting?

From my seat, Justin is the walking, talking, epitome of the diligent trader.  Many talk of reviewing.  Few do it like him.  Many talk about building PlayBooks to build your edge.  Few do it like him.  Many talk about learning from others.  Few do it like him.  Please pay careful attention to his diligent work with Tradervue to help him improve.

Further, Justin is an unusually good trading mentor.  Few have embraced the power, like him, of: each one, teach one.  While working on his trading game, he also teaches newer traders.  This has made him better.  This has helped him develop and understand his edge more completely, while helping younger traders.  He makes others better to make himself better.

I asked a former intern to craft show notes on his presentation.  They sit below, along with the video of his presentation live from Stony Brook U.

Show Notes   

Key Takeaways

  • Key emphasis on using Tradervue to track trades and making PlayBooks
  • Disregard the bad trades, focus/improve on the good trades
  • Trading rules are very important.
  • Turning point: joining a team because you get to work with someone on a daily basis who has 10+ years of experience and is consistently making money in the markets
  • Perseverance is a big part of trading.
  • Trust the process.
  • Risk Management is essential to succeed.
  • Importance of mentoring/helping younger traders. Not only to benefit them, but to benefit yourself as well.
  • Never double down on a losing position, that’s how you blow up your account.

Quotes

“If you love something, you’ve got to give it 110% effort, step out of your comfort zone, and give it your best shot.”

“I loved it so much, I was going to figure out a way.”

“Stocks are like rubber bands, you can only stretch them so far before they snap back.”

“Trading is sitting there, stalking trades and being really patient, and waiting until you see the perfect setup to strike. It’s kind of like you’re a sniper.”

“Having a trade thesis is one thing, but having a trade plan and seeing what you need to see to buy the stock are two totally different things.” (end)

From all of us at SMB, train and trade well!

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]