This Options Trader is Succeeding

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I try to offer examples of best practices from succeeding traders and share them with the trading community. It is my hopesuccess.1 developing traders will co-opt some of these best practices and improve their trading. I have another one to share- this one from our options trading desk.

One of the options traders on our desk just had his best month and I wrote him a congratulatory e-mail. This trader was taught from scratch by Seth Freudberg, Director of SMB Options, earned his respect from his hard work while training with Seth, and then was invited to trade on our Options Desk. Options traders are fully-backed by the firm- we take all down-side risk.

This trader’s response offers best practices for us to highlight:
Hi Mike,
Thanks very much for the email.   I have been working hard at my trading. It feel great to be improving.   When I say improving I am not referring to P&L.   What I mean is I am beginning to overcome some fears I had when I started the desk.  For example, I had the fear of letting Seth down.   I want to do a great job for Seth. Seth is my friend, and has supported me every step of the way.   What I found myself doing is taking on smaller risk and over adjusting my position to avoid any kind of loss.
The second change I have made is the time frame for the trade initiation.   With the low volatility I have found it beneficial to start my positions a little earlier to get favorable prices.
Lastly, over the past 5 months I have been eating healthy, exercising daily and sleeping better.  I have lost almost 50 lbs and feel great.  While I can’t figure out how that ties into my trading, I am sure it can’t hurt.
Everyone at SMB and Kershner trading have been fantastic.  I appreciate you and Seth taking a chance on me.  I will continue working hard everyday to improve my trading and life.
Best Practices:
1) Notice the personal relationship Seth built with his student.  Gr8 teachers care about their students helping them perform better.
2) The trader is open to a personal relationship with his coach propelling higher performance.
3) The trader truly cares about his work and uses this as fuel to succeed.
4) The trader understands the connection between physical health and making better trade decisions in real-time.
5) The trader is grateful.  I find some of the best traders are also some of the best people.  Also, they are able to appreciate the good in their life.
6) The trader is tweaking his edge to produce greater performance.  Trading is not a static game.  There is nothing to get, just a life of perpetual journey to perform and be better.
I hope you are doing some of the above during your trading journey and having a blast along the way.
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“You can be better tomorrow than you are today!”

Mike Bellafiore is the Co-Founder of SMB Capital and SMBU, which provides trading education in stocks, options, forex and futures. Bella is the author of One Good Trade and The PlayBook. He invites your questions at [email protected].

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