{"id":38874,"date":"2014-09-29T14:27:12","date_gmt":"2014-09-29T18:27:12","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=38874"},"modified":"2023-04-27T07:58:42","modified_gmt":"2023-04-27T11:58:42","slug":"two-trading-mistakes-to-avoid","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid","title":{"rendered":"Two Trading Mistakes to Avoid"},"content":{"rendered":"

Hello Mike –<\/p>\n

I completed reading your book last week and have to say the lessons I’ve learned from it are extremely invaluable to me in my quest to develop into a consistently profitable trader. I have typed up (18) pages of notes from your book that I have been reviewing them regularly in order to pound these concepts into my subconscious.<\/p>\n

However, I don not understand the following (2) phrases from your book and wish for you to explain them to me:<\/p>\n

1. “If you hit the decrementing (reducing?) big bids as a momentum lot, and buyer rebids, you have to get out right away'”.<\/p>\n

2. “Don’t overtrade levels during midday. Algo can easily outplay you with above\/below program.”<\/p>\n

I understand you’re busy, so please get back to me when you can.<\/p><\/blockquote>\n

@MikeBellafiore<\/strong><\/p>\n

Question 1: If you hit the bids when the bids are decrementing and the stock rebids this is a sign of strength from Reading the Tape.\u00a0 As I have written numerous times, the tape is not the only indicator we use to make a trading decision.\u00a0 However if you are making a momentum play based on the bids decrementing and then the bids refresh\/rebid then your trade thesis is disproved.\u00a0 Thus you should exit.<\/p>\n

You hit the bids making a momentum trade.\u00a0 Your thesis is when the bids drop that the stock will fall.\u00a0 If the there is a rebid then your thesis was incorrect and you no reason given the facts above not to exit.<\/p>\n

Question 2: HFTs are a reality for the intraday trader.\u00a0 There are trades we used to make that we cannot.\u00a0 At times it is harder to get stock or sell it.\u00a0 There is more noise around inflection points that you must learn to spot.\u00a0 So we trade on a longer time frame, are more precise about our best setups, and sidestep the HFTs.<\/p>\n

Overtrading during a low volume period may cause HFTs to hunt your positions and stop you out.\u00a0 An above\/below program is one example of how they do so.\u00a0 A stock finds an inflection point, say 15 in JNS.\u00a0 The stocks trades above 15 and below 15.\u00a0 The shorts cover at prices above 15.\u00a0 The longs sell at prices below 15.\u00a0 But JNS is not really moving.\u00a0 It is just above\/below 15 and shaking out the weak-hand shorts and longs.<\/p>\n

I hope that helps.<\/p>\n

“You can be better tomorrow than you are today!”<\/p>\n

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<\/em> and The PlayBook<\/em>. He welcomes your trading questions at mbellafiore@smbcap.com.<\/p>\n

no relevant positions<\/p>\n

\"tradingworkshop\"<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Hello Mike – I completed reading your book last week and have to say the lessons I’ve learned from it are extremely invaluable to me in my quest to develop into a consistently profitable trader. I have typed up (18) pages of notes from your book that I have been reviewing them regularly in order to pound these concepts into … 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":[607,108,38],"class_list":["post-38874","post","type-post","status-publish","format-standard","hentry","category-general-comments-2","tag-avoid","tag-mistakes","tag-trading","no-post-thumbnail"],"yoast_head":"\nTwo Trading Mistakes to Avoid | 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\/two-trading-mistakes-to-avoid\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Two Trading Mistakes to Avoid | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Hello Mike – I completed reading your book last week and have to say the lessons I’ve learned from it are extremely invaluable to me in my quest to develop into a consistently profitable trader. I have typed up (18) pages of notes from your book that I have been reviewing them regularly in order to pound these concepts into ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid\" \/>\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=\"2014-09-29T18:27:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-27T11:58:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2023\/03\/smbwebinarsignup.jpg\" \/>\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=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid\"},\"author\":{\"name\":\"Bella\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161\"},\"headline\":\"Two Trading Mistakes to Avoid\",\"datePublished\":\"2014-09-29T18:27:12+00:00\",\"dateModified\":\"2023-04-27T11:58:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid\"},\"wordCount\":448,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2023\/03\/smbwebinarsignup.jpg\",\"keywords\":[\"avoid\",\"mistakes\",\"trading\"],\"articleSection\":[\"General Comments\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid\",\"name\":\"Two Trading Mistakes to Avoid | SMB Training\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2023\/03\/smbwebinarsignup.jpg\",\"datePublished\":\"2014-09-29T18:27:12+00:00\",\"dateModified\":\"2023-04-27T11:58:42+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid#primaryimage\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2023\/03\/smbwebinarsignup.jpg\",\"contentUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2023\/03\/smbwebinarsignup.jpg\",\"width\":800,\"height\":380},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.smbtraining.com\/blog\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Two Trading Mistakes to Avoid\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/\",\"name\":\"SMB Training Blog\",\"description\":\"Lessons from the trading desk\",\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.smbtraining.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\",\"name\":\"SMB Training\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png\",\"contentUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png\",\"width\":230,\"height\":81,\"caption\":\"SMB Training\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/smbcap\/\",\"https:\/\/x.com\/smbcapital\",\"https:\/\/www.youtube.com\/user\/smbcapital\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161\",\"name\":\"Bella\",\"description\":\"Mike Bellafiore is a co-founder of SMB Capital, a day trading firm which takes great pride in its exceptional training program. SMB Capital is an equity prop trading desk that trades on 5th Avenue in New York City. Mr. Bellafiore is a graduate of the University of Connecticut School of Law. He has traded professionally for more than a decade.\",\"sameAs\":[\"https:\/\/www.smbtraining.com\/blog\/bellas-blog\"],\"url\":\"https:\/\/www.smbtraining.com\/blog\/author\/bella\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Two Trading Mistakes to Avoid | SMB Training","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid","og_locale":"en_US","og_type":"article","og_title":"Two Trading Mistakes to Avoid | SMB Training","og_description":"Hello Mike – I completed reading your book last week and have to say the lessons I’ve learned from it are extremely invaluable to me in my quest to develop into a consistently profitable trader. I have typed up (18) pages of notes from your book that I have been reviewing them regularly in order to pound these concepts into ... Read More","og_url":"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid","og_site_name":"SMB Training Blog","article_publisher":"https:\/\/www.facebook.com\/smbcap\/","article_published_time":"2014-09-29T18:27:12+00:00","article_modified_time":"2023-04-27T11:58:42+00:00","og_image":[{"url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2023\/03\/smbwebinarsignup.jpg","type":"","width":"","height":""}],"author":"Bella","twitter_card":"summary_large_image","twitter_creator":"@smbcapital","twitter_site":"@smbcapital","twitter_misc":{"Written by":"Bella","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid#article","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid"},"author":{"name":"Bella","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161"},"headline":"Two Trading Mistakes to Avoid","datePublished":"2014-09-29T18:27:12+00:00","dateModified":"2023-04-27T11:58:42+00:00","mainEntityOfPage":{"@id":"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid"},"wordCount":448,"commentCount":0,"publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid#primaryimage"},"thumbnailUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2023\/03\/smbwebinarsignup.jpg","keywords":["avoid","mistakes","trading"],"articleSection":["General Comments"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid","url":"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid","name":"Two Trading Mistakes to Avoid | SMB Training","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid#primaryimage"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid#primaryimage"},"thumbnailUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2023\/03\/smbwebinarsignup.jpg","datePublished":"2014-09-29T18:27:12+00:00","dateModified":"2023-04-27T11:58:42+00:00","breadcrumb":{"@id":"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid#primaryimage","url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2023\/03\/smbwebinarsignup.jpg","contentUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2023\/03\/smbwebinarsignup.jpg","width":800,"height":380},{"@type":"BreadcrumbList","@id":"https:\/\/www.smbtraining.com\/blog\/two-trading-mistakes-to-avoid#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.smbtraining.com\/blog"},{"@type":"ListItem","position":2,"name":"Two Trading Mistakes to Avoid"}]},{"@type":"WebSite","@id":"https:\/\/www.smbtraining.com\/blog\/#website","url":"https:\/\/www.smbtraining.com\/blog\/","name":"SMB Training Blog","description":"Lessons from the trading desk","publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.smbtraining.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.smbtraining.com\/blog\/#organization","name":"SMB Training","url":"https:\/\/www.smbtraining.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png","contentUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png","width":230,"height":81,"caption":"SMB Training"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/smbcap\/","https:\/\/x.com\/smbcapital","https:\/\/www.youtube.com\/user\/smbcapital"]},{"@type":"Person","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161","name":"Bella","description":"Mike Bellafiore is a co-founder of SMB Capital, a day trading firm which takes great pride in its exceptional training program. SMB Capital is an equity prop trading desk that trades on 5th Avenue in New York City. Mr. Bellafiore is a graduate of the University of Connecticut School of Law. He has traded professionally for more than a decade.","sameAs":["https:\/\/www.smbtraining.com\/blog\/bellas-blog"],"url":"https:\/\/www.smbtraining.com\/blog\/author\/bella"}]}},"_links":{"self":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/38874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/users\/144"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/comments?post=38874"}],"version-history":[{"count":2,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/38874\/revisions"}],"predecessor-version":[{"id":54655,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/38874\/revisions\/54655"}],"wp:attachment":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/media?parent=38874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/categories?post=38874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/tags?post=38874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}