27 May EP 022: How to be a better trader tomorrow – sharp insights with SMB co-founder Mike Bellafiore
This week I have great pleasure in saying, my guest on the show is Mike Bellafiore.
Mike is the co-founder of SMB Capital, a proprietary trading firm in New York City, as well as SMB University which is the arm for trader education. He’s also the author of two very popular trading books One Good Trade and ‘The Playbook.
Additionally, Mike is a regular contributor to Yahoo Finance, and his firm has often appeared on CNBC’s Fast Money, CNN Money, Bloomberg, and Fox Business. But even with all of this going on Mike is still a very active, very successful trader.
During our interview, Mike delivers some great insight about traders often confusing psychology for a lack of edge, and an overview for one of his favorite setups which has been labeled ‘The Money Trade”. Plus, he shares the development program new traders go through when joining SMB Capital, and a few top-level pointers on how to achieve a sustainable trading style.
And I just want to point out this interview was recorded on the 20th of May, only reason I say this is because Mike mentions a few market events during this interview.
NOTE: Click here to grab a free copy of ‘The One Thing I Wish Someone Would’ve Told Me Before I Started Trading…”
Lessons learned in this interview:
- The large difference between mentoring, coaching and education, why all are important but vastly different. Mike speaks about a real life example to make things clear.
- Mike discusses the reality of needing a trading edge. Although it is hard to find a true edge, having one will help you to avoid many of the psychological issues traders experience.
- The reason Mike was motivated to start a proprietary trading firm. How he had no idea what he was getting himself into, and the challenges that were in-front of him.
- An overview for one of his favorite setups, The Money Trade. And why Mike views the characteristics of this setup as a fundamentally sound trade.
- A few of the traits that will either reinforce why you are becoming a trader, or make you question if this is something you should even be doing.
- The process and training program new traders to through when entering the firm, and the time expectancy before they reach a level of profitability. Plus, the comparison to prop traders and retail traders.
- Mike talks about the key to a sustainable trading style, knowing the variables, loving your trades, and why you must be able to scale your trading method. Like he says, “We are not here to make $50K a year!”
- And much, much more…
Quotes from this interview:
- “Lots of times people mistake psychology with a lack of edge.” Tweet this
- “Many people say I know it when I see it, or feel it. No you dont.” Tweet this
- “If you cant be scalable then why are you actually in this game?” Tweet this
- “You need to sit down and understand what your best set-ups are.” Tweet this
- “As a trader youre an elite performer and that means taking care of yourself.” Tweet this
- “Great traders can barely be right more than 50% of the time, yet still be legendary traders.” Tweet this
- “You can be better tomorrow, than you are today.” Tweet this
Links and resources mentioned in this interview:
- One Good Trade – Is the first book authored by Mike Bellafiore. This title has become a go-to for prop traders around the globe, as it includes anecdotes of traders who have and have not made it. Plus, the important trading principals you need to grasp. one good trade mike bellafiore the playbook mike bellafiore
- The Playbook – This is the second book written by Mike, and this one is a serious dive into how you should identify your best trades, archive them and build from them, to become a better trader. Essentially this book is a guide to finding the trades that make the most sense to you, finding more of them and then trading them with more size.
- SMBU.com – The home for SMB University, where you can learn more about the trading education Mike and his team provide. You will also discover the blog, where Mike regularly posts interesting articles on how to improve your trading.
- SMBcap.com – The home for SMB Capital, where you can learn more about the proprietary trading firm, trader development programs, careers and more.
- @MikeBellafiore – Also be sure to follow Mike on Twitter.
Did you enjoy this interview?
- Please leave a 5 star review on iTunes to support the show.
- Subscribe to receive an email when new interviews go live, and a free guide.
- Post a comment below, what was your greatest takeaway from this interview?
- Share this interview with your friends and followers.
* no relevant positions