What this new trader learned on Day 1 (166 lessons)

BellaGeneral Comments

Our new class started part I of their training this week, with the SMB Foundation.

Some say, “The only way to learn how to trade is trade.”

Here is some evidence contrary to that position. One trainee with past trading experience sent me his notes, without solicitation, as to what he learned on Day 1 of our training program.  He participated in live classroom instruction, demo trading, interaction with traders on the desk, the archived Foundation training course, and access to our trading tools.  Here is what he learned:

  1. Get better every day
  2. Respect the markets
  3. Ask questions
  4. Only as good as the stocks I trade
  5. Expect nothing short of the best
  6. Be a better person
  7. Practice being an elite performer
  8. No complaining
  9. Decisions based on three things: reading the tape, intraday fundamentals, technical analysis.
  10. The tape will speak to me!
  11. Find plays that work for me
  12. Building my base + my intuition + my creativity = my best trader
  13. Focus on process
  14. Build filters for spikes
  15. Watch for people aggressively paying the offer when a stock should be going down
  16. Get a good risk to reward setup
  17. Tuesday and Wednesday Fed
  18. 3 things to move market: interest rates, China and oil ( 40-50 range )
  19. Support plays are good
  20. Breakout trades are good
  21. Consolidation trades are good
  22. Range plays are good
  23. Momentum trades are good
  24. Trades2Hold are good
  25. Talent absent hard work and listening skills Not rewarded in this market
  26. Learn the basic plays – they work. (*then make them your own)
  27. Be patient, my time will come
  28. Do not increase tier size until positive 7 out of 10 days
  29. 10 k max shares traded with small max loss
  30. Deliberate practice (top performers spend many hours rigorously practicing their craft)
  31. Concentrated practice is key
  32. Continuous feedback is good
  33. Focus- improve daily.
  34. Phelps didn’t take 1 day off for 5 years when training for Olympics
  35. Develop trading skills. More important than P&L.
  36. Elevate my life by conscious endeavor
  37. Measure success by how much I improve
  38. Ask questions
  39. No skipping steps
  40. What are important intraday prices?
  41. Detail specific trading scenarios
  42. How were my orders treated?
  43. Learn from others
  44. Consistently make trades when I identify a profitable set up
  45. Don’t overvalue hard trades and rips
  46. Don’t be hesitant to execute on easy trades.
  47. Resilience is important
  48. Every rip will make me a better trader
  49. Day doesn’t end until 4 pm
  50. Stay focused, remain calm, stick to the game plan
  51. Can’t be distracted by fear, self doubt or greed
  52. Don’t let past affect present.
  53. Eliminate mistakes- make list of things that don’t work and eliminate them
  54. Don’t start positions with biggest size. Scale in
  55. When I get confirmation load up
  56. Hold biggest position only when indicators are in my favor
  57. Market is my boss
  58. Don’t double down
  59. Don’t ignore price action
  60. Have a plan to exit if a stock trades against me.
  61. Play defense against the unexpected
  62. The unexpected will occur
  63. Live to play another day
  64. Use if/then statements to measure your risk/reward
  65. Need speed- run fast jump high when executing trades
  66. Practice execution skills daily
  67. Focus: tune out distractions, react quickly to new info, don’t miss a trade when alert goes off, place alerts before moving to next stock, place trade as soon as trigger occurs
  68. Control my emotions (*or go for a walk)
  69. 12:30 meeting SPY 212/212.50 make a Plan for under 212
  70. What are characteristics of strong downs and strong ups?
  71. GLD level 125. Think of scenarios and use it as an inflection point
  72. 4 month consolidation 115/122
  73. Oil in 40-50 range. Consolidation above 150?
  74. List of market stocks
  75. 3 categories of traders: experienced, developing and new
  76. Discretionary trader undervalued
  77. We can all do better
  78. Too many don’t understand best setups
  79. Old model – trade one product and get bigger
  80. Help me to be more bionic
  81. There are better ways to think about risk to make us more scaleable
  82. Match product with what is most appropriate for me
  83. Never lack a methodology to build from my strengths
  84. Build from my strengths
  85. Risk 30 percent of my intraday stop on my best setup
  86. Develop all in trades
  87. Playbook template: big picture, intraday fundamentals , tech analysis , reading the tape, intuition , trade management , trade strategy , trade review
  88. I have to internalize my trades
  89. To be scaleable we must take enough risk in our best setups
  90. Trade with more confidence to capture real move!!!!
  91. Need custom filters
  92. Can’t miss A+ setups
  93. ME too small for all products need to express favorable products
  94. To gain trust of mentor must work hard
  95. Ask best questions
  96. So detailed daily trading review
  97. Playbook trades
  98. Teaching is an investment of time on someone. Show me the work!
  99. Define best setups
  100. Pullback setups
  101. Breakouts trades
  102. Bullish consolidation
  103. Discretionary means pushing buttons based on what u see in front of u
  104. Quant traders data driven
  105. South African traders were fighting the trend too much
  106. We can’t make up our own fundamentals. The market dictates
  107. Don’t complain about rules
  108. Don’t base risk on P&L use 30% of intraday stop.   500 bucks is not scaleable
  109. Never a destination for a trader. Improve daily
  110. SMB Scanner makes me more efficient
  111. Gap column is a good start. Click and see news
  112. ATR ( average true range ) is from close to close
  113. SMB Scanner can track stocks with earnings
  114. SMB Scanner can show percent stock moved after earnings
  115. SMB Radar – stock filters with in play rank ( IPR)
  116. Red is hit blue is cool
  117. In play is 1 or more. 1.25 news and 3 is heavy
  118. Price spike filter is good
  119. Over 7 is yellow with breaking news
  120. 3<X<7 news
  121. Price spike is leading indicator and IPR lags
  122. Unusual movers are important
  123. If heavy volume follows then follow through
  124. If light volume follows then reversal likely
  125. Unusual moves with low IPR then reversal candidate
  126. Unusual moves with high IPR then follow through candidate
  127. Strong / weak based on relative to opening price good for opening drive
  128. Uptrend/ downtrend filter
  129. Stocks with low IPR near resistance or support likely to reverse
  130. Stocks with high IPR near resistance or support likely to breakout
  131. Stocks near high intense green
  132. Stocks near low intense orange
  133. Map a key alert above or below level
  134. Range bound stocks should have alert above resistance and below support
  135. We should have 2 options for open focus
  136. Alerts for am ideas
  137. Alerts for intraday high and lows
  138. Alerts for chart levels
  139. Alerts for market levels
  140. Alerts for important levels for stocks
  141. Alerts for yesterday’s highs and lows
  142. Alerts for weekly highs and lows
  143. How good can I be? Keep challenging myself
  144. Set 5 alerts. Trade off levels
  145. Make trades where I have an edge.
  146. Gr8 Trade command post must become known like back of my hand
  147. Linking Windows is good
  148. Need more info about entering orders- best practice
  149. Christian went through SMB Real-time in 4:15 meeting
  150. Need to post PlayBooks in forum
  151. Updated AM idea sheet
  152. Look at SMB Scanner before open
  153. Look at SMB Radar after open and before close
  154. Progression of success from Bella: lose money, break even, make a little, keep working, make more, keep working
  155. Film reading/review the tape is important
  156. Build scripts to solve timing problems with meetings
  157. Talked about SRPT and opportunities it presented
  158. Talked about Wednesday and if/then statements based on Fed action.  (*what if they raise rates? then?)
  159. To be prepared have a list of market stocks
  160. Gold is a $hitty intraday instrument
  162. Pay attention to future guidance
  163. 18 percent chance of FED raising interest rates
  164. 50 percent chance in December
  165. Yellen historically wants market to be unsurprised so she gives signals
  166. Market should be pretty quiet today with the exception of people pretending that they know what fed will do

Now for the next 29 training session of SMB Foundation and then part II and part III of our training program.

Related posts

The SMB Foundation: Proof that prop trading is not dead

Build a trading foundation

Lessons from a trader succeeding

*no relevant positions