This week SMB Capital is moving its offices to Midtown Manhattan. Lots of changes, lots of things to do, but we are super excited because making changes is necessary! And while we\u2019re on this subject of change, let\u2019s talk for a moment about the possible need for you to make changes in your trading.<\/p>\n
SMB once had in its ranks a very fine trader. Let\u2019s say his initials were AG. AG was a one-trick pony and it worked well for him for many years: low-volume, slow-moving stocks. He was a master at reading the tape and was consistent in his trades. However, the market began to change in late 2007, where volatility ruled the day. AG couldn\u2019t handle it. He got beat up for so many weeks that he eventually quit trading. Moral of the story: it\u2019s great to have a technique that\u2019s working for you, but when the market changes, you have to be read to change and make the necessary adjustments in order to survive.<\/p>\n
As Bella notes in a blog post below, \u201cWhen you are getting beaten up consistently it is human nature to viscerally conclude that the market is just too hard for you. But a good trader does not succumb to this human initial reaction. A good trader assumes the mentality that there is always an escape.\u201d Exactly. \u201cThe good trader moves forward. The good trader finds an escape. The good trader through positive self-talk reminds himself of his past successes. The good trader competes.\u201d<\/p>\n
It\u2019s true that changing isn\u2019t always comfortable but if you want to become great, you need to compete with yourself, you need to work on getting better (for you, not for anyone else), and the only way to improve your results is by reviewing your trading, eliminating mistakes, and adjusting to the current market conditions. For more on all this, check out the helpful blog posts below.<\/p>\n
So what changes do you need to make to be a great trader? Tell us what you need to work on and we will give you some tips!<\/p>\n
Mike Bellafiore
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