How to Become a Consistently Profitable Trader

If you want to become a consistently profitable trader, then you don’t want to miss this video. In it you will learn the path to becoming profitable directly from our NYC trading desk, along with the exact training technique that our traders use to become consistently profitable traders. And then as a bonus the step by step details of a proven and powerful setup that can help get you there.
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if you want to become a consistently
profitable trader then you don’t want to
miss this video in it you’ll learn the
path to becoming a consistently
profitable trader directly from our New
York City trading desk along with the
exact training technique that our
traders use to become consistently
profitable traders and as a bonus the
step-by-step details of a proven and
powerful setup that can help you get
there
this is not the information the average
retail trader has access to so stick
around there’s a ton for you to learn
[Music]
hi I’m Mike bellifiore co-founder of SME
capital and we’re proprietary trading
firm located in midtown Manhattan and
I’m the author of the trading classic
one good trade and the playbook the path
to consistently profitable trader is one
exposure to trading setups with edge
with training to experiment with trading
setups with edge 3 develop a playbook of
setups best for you the playbook is your
trading business for trade your PlayBook
in real time and not all those other
setups so let’s get into that powerful
training technique and that powerful
trade setup so you guys are armed with a
technique and a trade for you to improve
my second book that I wrote is called
the playbook and in the playbook I map
out an outline how to use this powerful
training technique to help you improve
as a trader how to use this powerful
technique to build your business and
it’s a technique that we use daily on
our trading desk on our P&L; trading desk
as our desk needs to make significant
P&L; to pay for all the stuff here in New
York City and we don’t make money off of
commissions and nobody puts up any
capital the firm fully backs traders and
we split profits with them so we need to
make money too to do well this technique
essentially is something that we teach
all of the people we hire at the desk
and train up to consistently profitable
and and then the best of them into
seven-figure traders and then the best
of those even better and it’s something
that’s carried on as guys are getting
really good so even guys who are
seven-figure traders are still employing
this training technique to build a
trading business so what we do is we
archive a setup that makes the most
sense to us at the end of each trading
day so let’s say you say a see a trade
during the day whether you’re in it or
whether you weren’t in it you figure out
the variables of that trade you
deconstruct it and you put it into this
SMB playbook template form so you’re
getting a pretty clear picture of the
important variables and the best way to
deconstruct it so you can use it going
forward new and developing traders build
a playbook the second part of our
training program in-house we call a
trader development and during that
period of time one of the habits that we
want to make sure it goes into the
routine is for them to do a daily
playbook trade and for that to go into
their playbook
and for them to build this playbook this
playbook then becomes their trading
business you’ll hear on our desk after
guys have built the playbook comments
like particularly from the the better
traders I wanted to stay in my lane I
want to trade my playbook and so when
you’re a developing trader and when
you’re an experienced trader you’re
archiving these really 8 plus setups
that you’re seeing during the day that
make the most sense to you that you like
the best
and you’re putting them into your
playbook it’s a playbook that actually
sits on your trading desk this is your
trading business and when guys VR
outside of the playbook that’s when
they’re over trading that’s when they’re
getting into lesser trades the idea is
to do more of what you do well and
bigger by understanding exactly what
your business is with this playbook
first then you can do that if you want
to learn 3 real-world setups that our
traders use including the simple setup
that we teach all of our new traders
and the setup that turned one of our
traders into a seven-figure big money
earner check out the free webinar that
we’re currently running just go ahead
and click the link that should be
appearing right now at the top right
hand corner of your screen that’s gonna
open up this free registration page in
the new window so don’t worry you’re not
gonna lose this video you’re gonna learn
more in a couple of hours from this
trading workshop than from years of
online education so we talked a little
bit about the path to consistently
profitable trade or exposure to trading
setups with edge with training so you
want to be exposed to different ways
that really great traders are making
money at prop desks and those short term
traders if you’re not exposed to those
trading setups with edge in your
training you might get fooled into
thinking it’s your psychology or it’s
something else you need setups with edge
you need to experiment with trading
setups with edge you can be a pretty
decent trader if your trading setups
without edge you’re not gonna make money
there at the end full stop and we spend
a lot of time on our desk studying
whether or not our setups have edge and
making sure that our setups that we’re
trading have edge you want to develop a
playbook of setups that are best for you
so you get exposed to lots of different
types of setups and then you want to
gravitate towards the ones that are
there best for your personality and your
cognitive strengths this playbook that’s
your trading business you don’t V you’re
outside of your playbook that’s over
trading you don’t take lesser trades
those are trades outside your playbook
trade your PlayBook in real time again
period the end full stop hey and not
those other trades and not those lesser
trades that’s the path to a consistently
profitable trader
so I think what we’ll do here guys is
we’ll just we’ll put this Kurt we’ll
shoot this we’ll shoot this with Kurt
and put this in so let’s talk about a
daily chart consolidation breakout let’s
talk about a trade it’s very powerful
that we use daily on the desk for you to
coop into your trading playbook and for
you to co-op to trade in real time when
I think about a set up I want to
understand the variables that are
important to its succeeding remember we
talked about setups with trading edge
the variables that are important to me
for a breakout trade are hey is this
above an important technical level on
our daily charts in this setup is there
elevated our Vil relative volume during
that trading session when I look at the
breakout am I seeing volume spike into
that breakout am I seeing a sharp move
away from price when we get above that
breakout price is the stock holding
above view op that is an indicator that
is the most effective indicator that we
use as intraday active traders when I
look at the pullback is there decreasing
volume into that pullback so I want to
see a push far away from the breakout
area on high volume and I want to see a
shallow pullin on decreasing volume when
it’s pulling in am I seeing buying on
the tape into that pull in it’s it hard
for it to go down I want to see the
market overall in my favor I want to see
corresponding stocks or that sector in
my favor
I’d love for a particular breakout trade
to also have a news catalyst I’d like
for there to be an announcement out
recently that gives people more
confidence that this company is going to
do well going forward and I want that
news to be unusual and I want it to be
unexpected so I want there to be an
announcement that there they’ve beaten
profits for the full year they’ve beaten
guidance for the full year by a lot and
people didn’t expect that I want to see
maybe they’ve got a new drug I want to
see maybe they’re a new product that
they’re selling is doing better than
they thought I want to see more people
are potentially going to their site and
spending more time on their site the
news should be unusual it should be
unexpected and it should give confidence
in institutional buyers to put on big
size four six eight twelve eighteen
months out I’d love for it to be in a
hot sector I’m show you an example that
I want short interest to be on my side
so I’d like the short interest to be
high if I’m buying a breakout that
causes people to have to buy the stock
and I want to hold until there’s a
reason to sell I don’t want to be
feeling the pressure to have to sell
this and take profits too quickly I want
to be able to capture a decent part of
this move I want to see that there’s now
a reason to get out of it we call that a
reason to sell so those are variables
that go into a really good breakout
trade and what I often see as the
difference between the elite traders
from the underperforming traders is
they’re not crafting their playbook
trades with the variables that are
important to a really good breakout
trade and I’ll give you an example of
that actually with the trader I’m
working with in a bit the advantages of
this trade of learning this trade and
archiving this trade
putting into SMB playbook form and
putting it into your playbook is that
you’re trading in the same direction as
the largest market players something has
a big break out there are big
institutional large hedge fund large
trading Big Money traders behind the
idea that’s what’s that’s where you’re
seeing that’s why the elevated volume is
there that’s why the push away from
price that the big spike to the upside
is there why that’s why that’s there
it’s it’s helping you capture moves that
are relatively stronger than the market
that’s a very key principle for traders
we want an excellent return on
investment we need to be making a lot
more money than the overall market so if
the market is up 10% I mean our traders
aren’t making 10% they’re making many
multiple times that in fact it’s not
even a measure that we use because our
traders are so much more efficient with
capital than the S&P; this active trading
that we do allows us to be able to out
return to outperform of just a regular
performance of market we want to find
tremendous risk reward setups so
downside of one upside of three four
five maybe even ten and the very best
you’re gonna be able to walk into
homerun trade so we’re gonna hit a lot
of singles we’re gonna hit a lot of
doubles but then this is a trade where
you can walk into a home run while also
controlling your risk it’s a very
scalable trade particularly in the large
caps and the high beta names you can
trade it very big you’re gonna see this
trade opportunity every day this
certainly is best in a straw market but
also holds up well and other market
conditions what I really like about this
trade and what we’re doing a lot of on
this desk is that we’re expressing it
both with stocks and options so if
you’re better at options and UART stocks
you can use this setup to express edge
if you don’t like options you only like
stocks
you know have at it with stocks but one
of the things we’re seeing with our best
traders as a path of growth for them is
that they can express this with stocks
and with options and so it allows them
to get bigger because now they have two
different ways to put the trade on and
so they’ll have a bunch of stocks
they’ll have a bunch of calls and both
are working nicely and psychologically
for whatever reason it enables some to
be able to trade these with more risk
and that’s what you want particularly
when you have a trade with edge you want
the odds on your fate you want the odds
in your side I mean that’s what ratings
about is what are the setups where the
odds are in your favor and how do I put
more money to risk when the odds are in
my favor you know very recently on our
desk this very setup one of our traders
made a hundred and seventy thousand plus
in Tesla a daily breakout trade one of
our traders recently made forty thousand
another made twenty thousand with
options in a dbx breakout very recently
so I say that because this is what these
are setups we’re using on their desk
these are setups that we’re using
recently your setups that we’re going to
get in you’re using it works in all
markets it works in all sectors it works
in all regimes and what I mean by that
is you know when I say it works in all
markets it really does and I don’t just
mean like the difference between a
futures market and an equities market I
literally mean US markets versus a
foreign market so one of the traders who
I work with on a daily basis who I love
is a seven-figure trader and he trades
with tremendous size and he actually has
to trade with tremendous size because
his market the Australian market doesn’t
offer as much movement as the US markets
but he also trades with tremendous sizes
very good trader and seven-figure trader
and can and enjoys the challenge of
being bigger and better and so we
exchange well he sends me a daily report
card and he does so with another very
large trader friend of him of his from
Australia as well and so this other
friend of his is on the exchange as well
and myself and this other trader provide
feedback to the seven-figure Australian
equities trader and in one of the report
cards well not in one of them but but
but in a few of the report cards I
noticed something that kept coming up
and I noticed that while he was making a
tremendous amount of money that he
needed some work if he wanted to trade
even bigger and trade more consistently
with his breakout trades and he needed
work very specifically with his
variables that he was considering and I
and I talked about this and this at the
very beginning you need to be
considering the variables that really
matter you need to be putting them into
your PlayBook template trades that
you’re archiving you need to be
developing these breakout trades with
the right variables and you know it
wasn’t that this trader was was was bad
it’s just that he to be better he needed
to be better with his playbook trades
with the variables he was considering
and I noticed that he wasn’t using our
vall enough and I noticed he wasn’t
using the volume into the break into the
breakout enough and I said hey let’s
make a list of the variables that you
want to see for your 8 plus setups and
breakout trades and and I said let’s
start really paying attention to our
bowl and volume on top of the other
variables you were thinking about like a
news catalyst and
technical levels and the tape let’s
that’s let’s really start to do that and
he did he did start focusing more on our
Ville and in volume which he hadn’t in
the past and he started to see better
success in consistency and ability to
size bigger and then profitability
because he was adding two more of these
variables with heightened focus into his
playbook trades so a big takeaway from
that is we’re seeing this this trade
work in different markets than just US
equities the fundamentals of the
particular trade I want to outline for
you guys to to learn how to think
through this trade you guys to walk away
armed with the setup that you can use
you can start using with your trading so
the fundamentals for this trade and we
break down a playbook trade in a very
specific way so we want to take a look
at the news the fundamentals of
particular company alright and so in
this case I’ll go through the other
variables but one of the variables that
we really need to go over our
fundamentals so Dropbox is a recent IPO
I peeled for $21 a share Dropbox is in a
hot sector the cloud storage the cloud
computing space it doesn’t really matter
what space is in what matters is it’s
hot those stocks are doing really well
there’s no recent news catalysts in this
which actually really like because a lot
of the teaching that we do here we talk
a lot about a news catalyst in something
and so we’re gonna get to remove that
from an example and show really good
profitability and to trade absent that
the ATR on this particular stock it’s
about a dollar look at the arvo on this
particular day look at the arbol look
how elevated it is their team +3 are
better is the stock that’s really in
play one of things I like to use our bow
for is to
confirm that I’m trading a stock really
in play three or better is really nice
thing play thirteen as things just
absolutely in play it essentially means
that it’s doing 13 times the volume that
it does on a general day price range
sure float not really on our side in
this particular trade that’s okay you’re
not gonna get all of the variables that
you want and all your trades that’s okay
but if you get a lot of them that’s
that’s that that helps you make trade
decisions average volume is good we can
get in and out of the stock for million
it’s liquid all right the big picture so
the big picture is how is the overall
market doing and how is the overall
sector doing you got to start there you
can’t just trade a stock in a vacuum
without understanding how is it sector
and how it’s is how is the overall
market doing we’re gonna take a top-down
approach to making trade decisions so
you can see the spies in a range between
279 20 and 277 80 the spy opened up
strong but sold off in the afternoon and
consolidates in a range around 270 850
the Q’s rallied strong through
yesterday’s highs and had just recently
made a new important high in Q’s tick on
that day was strong opened up really
strong anything above 800 on tick that’s
an indicator that we really like to use
that studies and tracks how how overall
stocks in NY I see are doing so we’re
getting a high tick a positive tick
staying positive until 10:15 showing
overall market strength off the open and
really I think the most important part
of this big picture for this doc excuse
me is that IQ and hua hu why a recent
China Chinese IPOs and they
had just made new all-time highs on this
day so the IPO sector of the marketplace
was really hot so you’re in a hot sector
but you’re in this segment of stocks
recent IPOs that are really really hot
and that’s bringing positive sentiment
towards tech names and IPOs so the big
picture is hey this is a recent IPO and
others are really running that matters
so we take a look at the spy on the
daily charts you can see it’s in a
channel between 277 50 and 27 279 20 we
want to take a top-down approach this is
where we are with our daily charts with
the spies on the one minute 279 20 acts
as the upper range of that daily range
and we’re hovering near the top of that
range so we’re in a strong up trending
market the Q’s had broke into all-time
highs recently and are very nearly
towards those all-time highs the tech
sector is very strong it’s outperforming
this makes it more likely that a stock
that breaks out as light is gonna go up
the overall sectors strong and and
healthy
that’s evidence for us tick very strong
mostly positive for the day very strong
tick on the open showing us that the
market overall is strong ok and now
let’s take a look at our daily charts
and this is the most meaningful chart
that we’ve looked at to date 32 is a
very significant resistance level fails
once at 32 twice at 32 3 times the 32
coming back for the fourth time couldn’t
get above there another time so 4 times
it couldn’t get above it and now it’s
approaching it for the fifth time it’s
doing a really nice job of holding this
thirtyish area so the pull in from 32 is
not particularly strong that 29 had
acted as significant support 32s
resistance and now we’re holding this
nice bowl-shaped pattern a little bit
higher
starting to slowly creep up towards a
resistance area 32 above is our signal
we get above 32 we’ve got a trade
decision this is a very clear resistance
level on our Delhi charts if we get
above this 32 level that’s really going
to capture our attention we look at our
5 minute chart dbx breaks through 32
daily resistance in the pre-market the
pre market volume was 5 million shares
that’s larger than the average daily
volume for the stock overall so in the
pre market
we’re already getting elevated volume
and now we’re above that price that’s
telling us the stock is really in play
and that there’s lots of interest in
owning the stock on our one-minute you
can see it had a really really solid run
I like to look at our volume when we get
above 32 and you can see elevated volume
let’s talk about that specifically
though so we know that you know we want
to get long this dbx when we get above
32 we get above that daily resistance we
open up we get that strong opening drive
so we talked about this right we want to
move away from price I talked about this
in one of our variables I want a sharp
move away from price that’s one of the
variables that tells us that the daily
breakout is likely to work okay and so
did we get that you’re damn right we got
that excuse me we did get that and then
look the other thing we want to check
for is did we get a let’s go back to our
list of variables all right do we have
elevated or do we have elevated our ball
we do are we above an important
technical level on our daily charts we
are
did we get a volume spike into that
breakout let’s see we did get a we get a
volume spike right there okay and then
now we want to look for decreasing
volume and a shallow pullin we get that
we look down at our volume down here
decreasing volume coming in
we’re holding above you up the Purple
Line is view up so we’re holding above
you up that’s one of our variables again
hold and cleanly above you up and so
when we pull in to that 33 area we have
a trade opportunity to add to our
position so we want to own some when we
get above 32 ideal to Onis in the pre
market as it’s getting above 32 and
volume is elevating ideal to buy some on
the open for an opening drive when it’s
holding above 32 and showing you the
push to the upside with volume and you
want to buy more you want to buy more
this is working this trade is working
it’s holding above you up you’re getting
the variables you want for your breakout
trade it’s time to put on risk and one
of the things that is done very well in
this trade is selling into strength and
buying back into weakness a really good
best practice that experienced traders
employ when they have a thesis and their
right is to take profits into strength
and to find areas to buy back into
Poland’s that way that they may cash
flow in the direction of the breakout
they’re holding their core and they’re
making cash flow along their core by
selling at the spikes and buying in to
pull backs and you can see right here
we’re getting an opportunity to sell
into strength as there’s unusual volume
that’s coming in and that’s signaling a
move could be reaching an end
and so you know again as we look into
this trade a little bit deeper
3650 is our target for our second lot
because it wick through that level and
came back down potentially showing the
uptrend move needs a pull in pull back
so we’re taking off and we pull back
into view op you want to put some more
back on so we’re taking off we’re
putting back on we’re holding our core
dbx show strength and breaks through the
prior high so we’re looking to hold two
Lots for a new high we’re selling the
second lot when a new high is made and
then a pullback and you know right here
this is a good place to sell your
getting out because it’s it’s got a
double top triple top failing to break
back through this 30 8:09 area slowing
up not Mike making new highs really far
away from BU out looking for reasons to
exit it’s not going higher lots of risk
and in terms of a pullback and so this
is a trade that one of our I asked one
of our newer guys to outline for you
guys and this is how he attacked it as
one of our newer guys who traded this
pretty well as you get a little bit more
experienced she’ll trade it even better
but he did a nice job on this did a
really nice job on this and you know it
all emanates from the variables this is
what you want to say for a breakout
trade these are the conversations you
want to be having in your head is it
above an important daily resistance
level am I seeing
elevated are vol intraday am I seeing a
volume spike into a breakout am i seeing
a sharp move away from price I am is it
holding above ewok it is am I seeing
decreasing volume into a pullback I am
is there buying in the tape into the
pole Poland there was is the market
overall my favor
it was are the corresponding stalks
insect and the sector in my favor it was
was there new news catalysts there
wasn’t is there a hot SEC there is this
in a hot sector it is short interest not
on my side
you want a reason to hold so we’re
getting almost all of these variables
and that’s giving us confidence to put a
trade-in in our playbook and so you know
one of the things that I just sort of
see and I’ll go back to this list again
one of the things that I say with
traders who are underperforming from
elite traders are the underperforming
traders are not thorough enough with the
variables they want to see in these
breakouts and maybe they look for two
variables
it gets above the price and it moves
nicely away from price you know or if it
gets above the price and it pulls in has
a shallow pullin that’s not enough
that’s not that is not detailed enough
that’s not that’s not thorough enough
that’s that’s not enough
conscientiousness from you as a trader
to be a consistently profitable trader
but when you start to add these
variables it really does make a
difference and you east look I saw that
with just very recently with one of the
seven-figure traders and I’m working
with who’s already making a lot of money
have made him better this is what we’re
seeing on the desk
it’s the thoroughness it’s the
conscientiousness that really makes it
makes a big difference okay and I always
like to end a playbook trade with a
trade review how I could have traded it
better but the the the trading the
trading the training technique that I
want you guys to take away is building
PlayBook trades give it a title it’s a
daily chart consolidation breakout trade
come up with a trade strategy what are
the variables that I need to look at to
make a trade decision what are the
variables that help me in our
my side that give me confidence this is
gonna work what are the fundamentals of
the trade got to know them that goes in
that goes is one of the slow because
that’s one of the variables of the
template I got a title I got that how am
I going to trade this what’s my trade
strategy what are the fundamentals what
what’s the big picture for the stock
what are my long – what am i you know
what’s my big picture ok what’s my big
picture ok I got my big picture what are
my longer-term charts telling me in this
particular name okay I got that what am
i intraday charts telling me about that
name okay I’m going to put that in
what’s my trade entry okay I’m going to
put that in it’s my trade management
okay I’m gonna put that in how am I
gonna trade this better that’s what goes
into a playbook and what you do is you
leave through this over the weekends of
your A+ setups and you start to
internalize these trades and get better
at them so what you learn from our chat
here today is the path of becoming a
consistently profitable trader a
training technique to help you become a
consistently profitable trader a
powerful trade setup to help you become
consistently profitable trader we say
CBT how to develop a trade like a pro
which is probably the most important
thing with these depth of variables not
a lack of depth not a couple but a depth
of variables how to build your trading
business with a playbook just trade your
PlayBook capture trades that make sense
to you put them in a playbook and stick
to those all right so I just want to
make one more comment about becoming
consistently profitable trader
exposure to trading setups with edge all
right you got to go find experienced
traders for train and learn setups that
measure and and test well you got to
experiment with them in real-time or on
a demo you’ve got to be developing a
playbook of the setups that are best for
you building that playbook and you got
to trade your PlayBook in real time this
is what we work on with our traders on
our desk this is what helps them and in
great measure to be successful and so
this is what we’re sharing with you as
to the work that we recommend you ought
to get to right now after this after
this chat so that you improve
all right great and so hey the stuff the
stuff is really effective but your head
down and do the work it really works
so you know look I get a lot of emails
and I talk to a lot of people who lament
I’m not a cpt how do I become a CPT you
know a CPT yet you’re not a CPT yet it
doesn’t mean you’re not gonna be a CPT
it means you’re not a CPT yet start
training well today train like a pro
build the trading business of setups
with edge and a playbook and then and
then and and and really only then really
only then are you gonna learn just how
good you can be I finish my second book
the playbook with this quote you can be
better tomorrow than you are today okay
now it’s your turn which of the powerful
trading techniques are you going to add
to your trading are you going to build a
playbook best for you or are you going
to eliminate the trades outside of your
PlayBook let us know by leaving a
comment below right now

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