{"id":46095,"date":"2017-09-18T16:00:41","date_gmt":"2017-09-18T20:00:41","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=46095"},"modified":"2017-09-20T12:02:13","modified_gmt":"2017-09-20T16:02:13","slug":"the-real-stop","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/the-real-stop","title":{"rendered":"The real stop"},"content":{"rendered":"<p><iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/Tuk7Ilz-UuQ\" frameborder=\"0\" allowfullscreen><\/iframe><\/p>\n<p>A trader on the desk wrote this in his daily review:<\/p>\n<blockquote><p><span style=\"font-weight: 400;\">Took the train home with (redacted, Senior Trader at firm) today, we had a really good chat. Seeing how far he has come and how he views trades. \u00a0Does Not trade price action so much. He focuses more on his overall idea and trades it loosely. \u00a0Shorting rallies covering dips, buying pullbacks and selling pops. \u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Makes me think about some of my main ideas and different ways I can trade them. \u00a0Should I be smaller and let the stock really flex? \u00a0Should I be bigger and risk X amount of my daily stop loss? \u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Something to think about moving forward. \u00a0I get so caught up in price action, and not the overall idea and bigger picture sometimes it messes with me. \u00a0Going to take some of the things he said and try them and see what works best for me. \u00a0<\/span><\/p><\/blockquote>\n<p><strong>@MikeBellafiore<\/strong><\/p>\n<p>This raises two important issues for traders: a) setting the real stop b) trading your PlayBook.<\/p>\n<p><em>The real stop<\/em><\/p>\n<p>When making a swing trade, there is a stop that many successful traders use: &#8220;when I know the trade is wrong&#8221;.<\/p>\n<p>As short-term and intraday traders, we must be careful to set stops that do not afford realistic risk. \u00a0We must also factor how much we are willing to lose with this real stop. \u00a0If we need a larger stop, then we must trade with smaller size. \u00a0Absent this then our trader losers can become outsized.<\/p>\n<p>For example, I am in a swing short right now in UBNT. \u00a0Where do I know I am wrong in this short? \u00a0Above 52. \u00a0Everything else is just noise. \u00a0(I know I am right below 48ish.)<\/p>\n<p>Having said that, I must acknowledge that my win rate will be lower with swing trades than with scalps or momentum trades. \u00a0When I am right, I must make more. \u00a0I must hold for the real move as well, when giving the trade the real stop.<\/p>\n<p><em>Trading your PlayBook<\/em><\/p>\n<p>I do see many developing traders grasp onto the trades of more successful traders, thinking this is their path forward. \u00a0It is important to find a role model, from which to learn. \u00a0It is important to be exposed to trades with edge. \u00a0Starting with trades with edge taken by other traders is a good place to start your live trading. \u00a0But, but, but to become your best trader you must develop your PlayBook.<\/p>\n<p>This means making trades your own.<\/p>\n<p>This means determining your own strategies for your trade theses.<\/p>\n<p>This means building your PlayBook from your unique strengths.<\/p>\n<p>Let me offer an example. \u00a0On our desk there is a team that focuses on a subset of stocks. \u00a0The team leader is an exceptional trader. \u00a0Many of the traders on his team are very strong traders. \u00a0In fact, I cannot think of one that is not profitable.<\/p>\n<p>They all attack trades uniquely.<\/p>\n<p>They all get big in different ways.<\/p>\n<p>They all trade their own PlayBook from the same trading opportunities.<\/p>\n<p>It is terrific to co-opt trades of another. \u00a0But in the end, you have to be your own trader. \u00a0You want to develop a PlayBook based upon the trades that make the most sense to you. \u00a0You want to develop a PlayBook that allows your talents to flourish.<\/p>\n<p>That top trader is different than you. \u00a0If you want to be as good as him, then you need to trade the setups that allow you to express your strengths in the markets.<\/p>\n<p>As always, I welcome your comments\/feedback- mbellafiore@smbcap.com.<\/p>\n<p>*no relevant positions<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A trader on the desk wrote this in his daily review: Took the train home with (redacted, Senior Trader at firm) today, we had a really good chat. Seeing how far he has come and how he views trades. \u00a0Does Not trade price action so much. He focuses more on his overall idea and trades it loosely. \u00a0Shorting rallies covering &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/the-real-stop\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":46096,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[30,18,1837,653,1354,5444,1349],"class_list":["post-46095","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-comments-2","tag-prop-trading","tag-smb-capital","tag-trader-performance","tag-trader-training","tag-trading-coach","tag-trading-coarse","tag-trading-mentor"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The real stop | 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\/the-real-stop\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The real stop | SMB Training\" \/>\n<meta property=\"og:description\" content=\"A trader on the desk wrote this in his daily review: Took the train home with (redacted, Senior Trader at firm) today, we had a really good chat. Seeing how far he has come and how he views trades. \u00a0Does Not trade price action so much. He focuses more on his overall idea and trades it loosely. \u00a0Shorting rallies covering ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/the-real-stop\" \/>\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=\"2017-09-18T20:00:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2017-09-20T16:02:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2017\/09\/shark-hat.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"600\" \/>\n\t<meta property=\"og:image:height\" content=\"443\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\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\/the-real-stop#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-real-stop\"},\"author\":{\"name\":\"Bella\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161\"},\"headline\":\"The real stop\",\"datePublished\":\"2017-09-18T20:00:41+00:00\",\"dateModified\":\"2017-09-20T16:02:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-real-stop\"},\"wordCount\":599,\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-real-stop#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2017\/09\/shark-hat.jpg\",\"keywords\":[\"prop trading\",\"smb capital\",\"trader performance\",\"trader training\",\"trading coach\",\"trading coarse\",\"trading mentor\"],\"articleSection\":[\"General Comments\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-real-stop\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/the-real-stop\",\"name\":\"The real stop | SMB Training\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-real-stop#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-real-stop#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2017\/09\/shark-hat.jpg\",\"datePublished\":\"2017-09-18T20:00:41+00:00\",\"dateModified\":\"2017-09-20T16:02:13+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-real-stop#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.smbtraining.com\/blog\/the-real-stop\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-real-stop#primaryimage\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2017\/09\/shark-hat.jpg\",\"contentUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2017\/09\/shark-hat.jpg\",\"width\":600,\"height\":443},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-real-stop#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.smbtraining.com\/blog\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The real stop\"}]},{\"@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":"The real stop | 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\/the-real-stop","og_locale":"en_US","og_type":"article","og_title":"The real stop | SMB Training","og_description":"A trader on the desk wrote this in his daily review: Took the train home with (redacted, Senior Trader at firm) today, we had a really good chat. Seeing how far he has come and how he views trades. \u00a0Does Not trade price action so much. He focuses more on his overall idea and trades it loosely. \u00a0Shorting rallies covering ... Read More","og_url":"https:\/\/www.smbtraining.com\/blog\/the-real-stop","og_site_name":"SMB Training Blog","article_publisher":"https:\/\/www.facebook.com\/smbcap\/","article_published_time":"2017-09-18T20:00:41+00:00","article_modified_time":"2017-09-20T16:02:13+00:00","og_image":[{"width":600,"height":443,"url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2017\/09\/shark-hat.jpg","type":"image\/jpeg"}],"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\/the-real-stop#article","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/the-real-stop"},"author":{"name":"Bella","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161"},"headline":"The real stop","datePublished":"2017-09-18T20:00:41+00:00","dateModified":"2017-09-20T16:02:13+00:00","mainEntityOfPage":{"@id":"https:\/\/www.smbtraining.com\/blog\/the-real-stop"},"wordCount":599,"publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/the-real-stop#primaryimage"},"thumbnailUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2017\/09\/shark-hat.jpg","keywords":["prop trading","smb capital","trader performance","trader training","trading coach","trading coarse","trading mentor"],"articleSection":["General Comments"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.smbtraining.com\/blog\/the-real-stop","url":"https:\/\/www.smbtraining.com\/blog\/the-real-stop","name":"The real stop | SMB Training","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.smbtraining.com\/blog\/the-real-stop#primaryimage"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/the-real-stop#primaryimage"},"thumbnailUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2017\/09\/shark-hat.jpg","datePublished":"2017-09-18T20:00:41+00:00","dateModified":"2017-09-20T16:02:13+00:00","breadcrumb":{"@id":"https:\/\/www.smbtraining.com\/blog\/the-real-stop#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.smbtraining.com\/blog\/the-real-stop"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.smbtraining.com\/blog\/the-real-stop#primaryimage","url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2017\/09\/shark-hat.jpg","contentUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2017\/09\/shark-hat.jpg","width":600,"height":443},{"@type":"BreadcrumbList","@id":"https:\/\/www.smbtraining.com\/blog\/the-real-stop#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.smbtraining.com\/blog"},{"@type":"ListItem","position":2,"name":"The real stop"}]},{"@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\/46095","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=46095"}],"version-history":[{"count":0,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/46095\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/media\/46096"}],"wp:attachment":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/media?parent=46095"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/categories?post=46095"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/tags?post=46095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}