{"id":38554,"date":"2014-08-08T12:20:11","date_gmt":"2014-08-08T16:20:11","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=38554"},"modified":"2021-05-07T09:42:35","modified_gmt":"2021-05-07T13:42:35","slug":"slow-down-the-challenge-of-newness-to-trading","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/slow-down-the-challenge-of-newness-to-trading","title":{"rendered":"Slow Down! The Challenge of Newness to Trading"},"content":{"rendered":"<p>Traders want to become <a href=\"http:\/\/www.forbes.com\/profile\/steve-cohen\/\">Steve Cohen <\/a>TODAY!<\/p>\n<p>This can lead to starting too fast for all levels of traders at all different stages of their careers.<\/p>\n<p>My advise based on experience working with pro traders in NYC?\u00a0 Slow down!<\/p>\n<p>At our firm we hire experienced discretionary and quant traders with a track record.\u00a0 We fully back the traders taking all of the downside risk.\u00a0 Before a trader starts we give him\/her loss limits for the day and a &#8220;number&#8221;.<\/p>\n<p>The &#8220;number&#8221; is when we will fire them.\u00a0 Everyone understands upfront what we are willing to risk on their trading.\u00a0 We hired an experienced trader a few months ago with an outstanding track record and he hit his number in one month.\u00a0 Was this an issue of him being a poor trader or did he under-appreciate the adjustment challenge of newness?<\/p>\n<p>Think of all the new things for this experienced trader:<\/p>\n<ul>\n<li>a new platform<\/li>\n<li>new traders around him<\/li>\n<li>different sounds and visuals<\/li>\n<li>a new commute to work<\/li>\n<li>new places to find to eat lunch and breakfast and snacks<\/li>\n<li>new loss limits<\/li>\n<li>different book to trade<\/li>\n<li>firm culture<\/li>\n<\/ul>\n<p>This experienced trader, heck former star trader, had all of this newness to overcome.\u00a0 This was too much for him.<\/p>\n<p>A former SMB trader, who started a hedge fund, folded it (not for failure but for other reasons), and returned to trade recently.\u00a0 He lost way too much in his first two weeks.\u00a0 We slowed him down and asked him to focus on consistency.\u00a0 He has.\u00a0 But if we left him alone he could have hit his number in a month as well just adapting to the newness.<\/p>\n<p>Our recent training class has just went live.\u00a0 We have them trade one trade at a time.\u00a0 I caught one trader making a trade that he was not permissioned to make and ordered him to exit the position.\u00a0 We want him starting slowly because adapting to newness is a challenge.<\/p>\n<p>There are countless examples of arcade traders blowing up their accounts in week one.<\/p>\n<p>There are too many tales of retail traders blowing up their savings in one quarter.<\/p>\n<p>Respect the challenge of newness.\u00a0 Slowly, slowly, slowly build trading success.<\/p>\n<p><strong>Related Posts:<\/strong><\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/start-slow-start-fast\">Start Slow?\u00a0 Start Fast?<\/a><\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/slowing-down-your-game\">Slowing Down Your Game<\/a><\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/let-me-help-you-save-50k\">Let Me Help Save You 50k<\/a><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><em>&#8220;You can be better tomorrow than you are today!&#8221;<\/em><\/p>\n<p>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 <em><a href=\"http:\/\/www.amazon.com\/One-Good-Trade-Competitive-Proprietary-ebook\/dp\/B003VIWRJA\/ref=sr_1_1?s=books&amp;ie=UTF8&amp;qid=1396299609&amp;sr=1-1&amp;keywords=The+PlayBook+one+good+trade\">One Good Trade<\/a><\/em> and <em><a href=\"http:\/\/www.amazon.com\/Playbook-Inside-Think-Professional-Trader\/dp\/0132937646\/ref=sr_1_1?s=books&amp;ie=UTF8&amp;qid=1358899059&amp;sr=1-1&amp;keywords=The+PlayBook+mike+bellafiore\">The PlayBook<\/a><\/em>. He welcomes your trading questions at mbellafiore@smbcap.com.<\/p>\n<p>no relevant positions<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Traders want to become Steve Cohen TODAY! This can lead to starting too fast for all levels of traders at all different stages of their careers. My advise based on experience working with pro traders in NYC?\u00a0 Slow down! At our firm we hire experienced discretionary and quant traders with a track record.\u00a0 We fully back the traders taking all &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/slow-down-the-challenge-of-newness-to-trading\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[3690,4068,486,38],"class_list":["post-38554","post","type-post","status-publish","format-standard","hentry","category-general-comments-2","tag-challenge","tag-newness","tag-slow","tag-trading","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Slow Down! The Challenge of Newness to Trading | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/slow-down-the-challenge-of-newness-to-trading\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Slow Down! The Challenge of Newness to Trading | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Traders want to become Steve Cohen TODAY! This can lead to starting too fast for all levels of traders at all different stages of their careers. My advise based on experience working with pro traders in NYC?\u00a0 Slow down! At our firm we hire experienced discretionary and quant traders with a track record.\u00a0 We fully back the traders taking all ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/slow-down-the-challenge-of-newness-to-trading\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2014-08-08T16:20:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-05-07T13:42:35+00:00\" \/>\n<meta name=\"author\" content=\"Bella\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bella\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/slow-down-the-challenge-of-newness-to-trading#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/slow-down-the-challenge-of-newness-to-trading\"},\"author\":{\"name\":\"Bella\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161\"},\"headline\":\"Slow Down! 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