This is a trader’s fault

BellaMike Bellafiore's (Bella's) Blogs6 Comments

I received this trading recap from an SMB Trader:

I love these types of days where I can keep my tickets really low and keep 95% of what i gross. For some reason when I trade from home, i don’t over trade and am able to keep my tickets really low. maybe because i have other responsibilities when i stay home like taking care of both dogs when my brothers not around.. maybe subconsciously i think that being in the office means i need to be trading all the time. i also don’t get involved with the higher priced/in play stocks as much as i do when im on the desk. i just do my thing trading the small caps.i only wait for the A+ setups in higher priced stocks.  need to figure out how to have these types of days when im in the office, and learn to keep my tickets low and be more selective. definitely sitting next to shark is going to make me more money 90% of the time, but he also is in 15 stocks a day but he’s making so much more in his winners that it works. maybe i get involved in too many of his trades sometimes, but i trust him more than anyone on the desk and we work well as a team and push each other to do better.
Today the theme was low floats. multiple low floaters are up huge like CLNT up 300% and HEAT up 300%. when u see that type of mania in the low floaters they always try to find the next one. i happened to find 1 before everyone else did and I was able to really capitalize on it. and whats interesting is that i traded with very small size in HIHO because the volume was so low(at the time). but i held it for a big move because i was never so big that it becomes uncomfortable to sit in for awhile. bought HIHO at 2.43 and sold some in the 2.70’s, bought it back on dips to 2.55 and sold again in the high 2.60’s and 2.70’s..bought a half tier back at 2.65 and sold in mid 2.70’ i was able to extract alot of money out of this stock on very small size(1000-2000 shares which is not much in a 2$ stock). i think it goes to 3 tomorrrow so im trying to hold a feeler overnight. i made the same trade in znga that i did yesterday at multi day support level. HAUP was another low

I was walking with a new trader the other day who expressed confusion on how to use the “noise” on the desk around him.  Let’s define “noise” as the information shared by other traders on the desk.  He felt these ideas were hurting him.  The bad ideas for his trading certainly will.  I was clear to guide the correct expectation of this “noise” and his responsibility to make sense of it for his trading.

Above you may notice a turn towards “noise” negatively impacting the trader above.  But more importantly notice how this trader takes responsibility quickly for using this information flow.

On those useless, value-taken forums that I no longer visit, the theme of others affecting their trading destiny flows like water in the ocean.   The thought that someone or something outside of you is the reason for your lack of success as a trader is the very reason why you will fail as a trader.

So let me be clear about the information you receive as a trader.

1) You need it.

Why do you think StockTwits is so popular?  Why do you think there are things like trading firms?

2) You must learn which information is most helpful to you.

Not all information is created equal for you.

3) It is on you to use this information to add value to your trading.

Take responsibility for everything that happens in your trading career.  If you use trading information poorly than that is your fault!

4) The act of complaining about information is the reason why you will fail as a trader.

It is not the bad information.  It is you with the mindset that things like that are actually harming you.  It is like those athletes who blame the refs.


no relevant positions

6 Comments on “This is a trader’s fault”

  1. well, It depends on the personality of the individual. Nicolas Darvas would be like the trader above. Darvas was more successful in his trading when He was away on his Dancing tour. When he decided in the Trading floor, He lost focus and lost trades. He wouldn’t read any newspapers as they may influence his trading decision. 

  2.  So then it was up to Darvas to recognize that information flow did not work for him.  It was not the fault of the person sharing the info.  This is a very important distinction for a developing trader to understand.  Thxs for the comments Osman. 

  3. Didn’t Madoff tell everyone he was an expert trader when nobody was looking? “Hey everybody, I’m a kickass trader when I’m not hanging out with you losers”. Come on guy, go be a dog groomer/ trader and make millions.

  4. having the confidence to create your OWN daily trade list will help eliminate the “NEED” to keep tuned in to the “noise” and you may actually be one of the “noise makers” someday.

  5. Noise becomes a valuable opinion once you know the style of trading that the person has that makes the noise.
    Best noise there is to me is call out of a fact not an opinion.

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