{"id":49840,"date":"2020-05-06T14:58:52","date_gmt":"2020-05-06T18:58:52","guid":{"rendered":"https:\/\/www.smbtraining.com\/blog\/?p=49840"},"modified":"2020-05-06T14:58:52","modified_gmt":"2020-05-06T18:58:52","slug":"how-the-best-proprietary-traders-are-reaching-new-levels-surprisingly","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/how-the-best-proprietary-traders-are-reaching-new-levels-surprisingly","title":{"rendered":"How the best proprietary traders are reaching new levels (surprisingly)"},"content":{"rendered":"

In this video renowned trading coach and author Dr. Brett Steenbarger and Mike Bellafiore present to a proprietary trading firm in the Philippines on how the best active proprietary trader are reaching new levels (surprisingly). Learn how top proprietary traders are getting even better.<\/p>\nView Video Transcript<\/strong><\/span>

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in this video renowned trading coach and<\/div>\n<\/div>\n<\/div>\n
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author dr. Brett Steinberger and I<\/div>\n<\/div>\n<\/div>\n
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present live to proprietary trading firm<\/div>\n<\/div>\n<\/div>\n
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in the Philippines how the best active<\/div>\n<\/div>\n<\/div>\n
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proprietary traders are reaching new<\/div>\n<\/div>\n<\/div>\n
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levels surprisingly hi I’m Mike<\/div>\n<\/div>\n<\/div>\n
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bellifiore co-founder of SME capital and<\/div>\n<\/div>\n<\/div>\n
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we’re a proprietary trading firm located<\/div>\n<\/div>\n<\/div>\n
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in midtown Manhattan and I’m also the<\/div>\n<\/div>\n<\/div>\n
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author of the trading classic one good<\/div>\n<\/div>\n<\/div>\n
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trade and the playbook click our<\/div>\n<\/div>\n<\/div>\n
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subscribe button so you don’t miss any<\/div>\n<\/div>\n<\/div>\n
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of the videos they’re producing for you<\/div>\n<\/div>\n<\/div>\n
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in the trading community learn how top<\/div>\n<\/div>\n<\/div>\n
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proprietary traders are getting even<\/div>\n<\/div>\n<\/div>\n
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better so you can grow your trading<\/div>\n<\/div>\n<\/div>\n
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account<\/div>\n<\/div>\n<\/div>\n
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so dr. steamed burger I think we had<\/div>\n<\/div>\n<\/div>\n
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discussed giving some of the students a<\/div>\n<\/div>\n<\/div>\n
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preview of how we do things that has to<\/div>\n<\/div>\n<\/div>\n
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be capital so one of the things that we<\/div>\n<\/div>\n<\/div>\n
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do on a day when dr. Steinberg revisits<\/div>\n<\/div>\n<\/div>\n
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and coaches and mentors our traders is<\/div>\n<\/div>\n<\/div>\n
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we ask him to give an overview of what<\/div>\n<\/div>\n<\/div>\n
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he’s seeing in the markets and so he has<\/div>\n<\/div>\n<\/div>\n
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the pulse of what big money traders are<\/div>\n<\/div>\n<\/div>\n
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doing hedge funds sophisticated traders<\/div>\n<\/div>\n<\/div>\n
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you know some of the biggest traders in<\/div>\n<\/div>\n<\/div>\n
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the world both as discretionary and<\/div>\n<\/div>\n<\/div>\n
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quantitative traders we are price action<\/div>\n<\/div>\n<\/div>\n
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active proprietary traders and have a<\/div>\n<\/div>\n<\/div>\n
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different perspective and so it’s very<\/div>\n<\/div>\n<\/div>\n
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helpful for our traders it’s very<\/div>\n<\/div>\n<\/div>\n
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interesting to me and I’ll be wrench for<\/div>\n<\/div>\n<\/div>\n
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you guys to hear hey hey what are some<\/div>\n<\/div>\n<\/div>\n
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of the more sophisticated people in the<\/div>\n<\/div>\n<\/div>\n
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world world thinking and what is dr.<\/div>\n<\/div>\n<\/div>\n
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Steinberg are seeing in his own work<\/div>\n<\/div>\n<\/div>\n
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with his own trading and the people that<\/div>\n<\/div>\n<\/div>\n
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he’s talking to<\/div>\n<\/div>\n<\/div>\n
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so dr. Steinberg what are some of the<\/div>\n<\/div>\n<\/div>\n
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main themes that you’re looking at in<\/div>\n<\/div>\n<\/div>\n
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the market today<\/div>\n<\/div>\n<\/div>\n
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well thanks Mike you know in the US<\/div>\n<\/div>\n<\/div>\n
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stock market we’re seeing something very<\/div>\n<\/div>\n<\/div>\n
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very interesting we saw a situation<\/div>\n<\/div>\n<\/div>\n
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where obviously we had a big big big<\/div>\n<\/div>\n<\/div>\n
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decline from mid-february to mid-march<\/div>\n<\/div>\n<\/div>\n
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and then we had quite a rally off that<\/div>\n<\/div>\n<\/div>\n
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March bottom particularly in certain<\/div>\n<\/div>\n<\/div>\n
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sectors of the market what the equity<\/div>\n<\/div>\n<\/div>\n
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long-short investors that I work with<\/div>\n<\/div>\n<\/div>\n
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we’re doing was picking the companies<\/div>\n<\/div>\n<\/div>\n
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that they felt would benefit in a kovin<\/div>\n<\/div>\n<\/div>\n
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environment and pick the companies that<\/div>\n<\/div>\n<\/div>\n
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were vulnerable so they were long the<\/div>\n<\/div>\n<\/div>\n
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companies that would be secure like some<\/div>\n<\/div>\n<\/div>\n
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of the technology shares and they’re<\/div>\n<\/div>\n<\/div>\n
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short some of the companies that they<\/div>\n<\/div>\n<\/div>\n
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felt would be vulnerable banks would be<\/div>\n<\/div>\n<\/div>\n
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an example because of the number of<\/div>\n<\/div>\n<\/div>\n
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bankruptcies and economic decline then<\/div>\n<\/div>\n<\/div>\n
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we saw recently<\/div>\n<\/div>\n<\/div>\n
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change in the character of the market<\/div>\n<\/div>\n<\/div>\n
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small cap shares which had been lagging<\/div>\n<\/div>\n<\/div>\n
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suddenly started to outperform some of<\/div>\n<\/div>\n<\/div>\n
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the sectors that were beaten down<\/div>\n<\/div>\n<\/div>\n
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including you know things like Airlines<\/div>\n<\/div>\n<\/div>\n
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and cruise lines and things like that<\/div>\n<\/div>\n<\/div>\n
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suddenly we got a lot of value oriented<\/div>\n<\/div>\n<\/div>\n
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buying in those shares on top of the<\/div>\n<\/div>\n<\/div>\n
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buying in the strong company so we had a<\/div>\n<\/div>\n<\/div>\n
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big increase of breadth and normally<\/div>\n<\/div>\n<\/div>\n
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that leads to momentum upside momentum<\/div>\n<\/div>\n<\/div>\n
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going further what happened<\/div>\n<\/div>\n<\/div>\n
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late last week is a big reversal of that<\/div>\n<\/div>\n<\/div>\n
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the decline that we saw recently is not<\/div>\n<\/div>\n<\/div>\n
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a normal decline the decline we’ve seen<\/div>\n<\/div>\n<\/div>\n
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in the overnight action in the SMP<\/div>\n<\/div>\n<\/div>\n
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futures the es contract this is not<\/div>\n<\/div>\n<\/div>\n
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normal why do I say that because if we<\/div>\n<\/div>\n<\/div>\n
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look at the percentage of stocks<\/div>\n<\/div>\n<\/div>\n
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training above their short term moving<\/div>\n<\/div>\n<\/div>\n
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average so the percentage of S&P 500<\/div>\n<\/div>\n<\/div>\n
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stocks trading above their three-day<\/div>\n<\/div>\n<\/div>\n
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moving average above their 5-day moving<\/div>\n<\/div>\n<\/div>\n
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average it’s under well under 10% in<\/div>\n<\/div>\n<\/div>\n
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other words in the last few days it’s<\/div>\n<\/div>\n<\/div>\n
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not just that the market has gone down<\/div>\n<\/div>\n<\/div>\n
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it’s that everything has gone down that<\/div>\n<\/div>\n<\/div>\n
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is unusual following a period of strong<\/div>\n<\/div>\n<\/div>\n
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breath following a momentum move higher<\/div>\n<\/div>\n<\/div>\n
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now why would that be why would what the<\/div>\n<\/div>\n<\/div>\n
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market suddenly reverse so violently<\/div>\n<\/div>\n<\/div>\n
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across all of the sectors there are two<\/div>\n<\/div>\n<\/div>\n
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things that the money managers I speak<\/div>\n<\/div>\n<\/div>\n
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with are talking about one is the<\/div>\n<\/div>\n<\/div>\n
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decision of the US administration to<\/div>\n<\/div>\n<\/div>\n
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entertain the idea of a punishment for<\/div>\n<\/div>\n<\/div>\n
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China for their handling of the<\/div>\n<\/div>\n<\/div>\n
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coronavirus situation<\/div>\n<\/div>\n<\/div>\n
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including possible tariffs so if you add<\/div>\n<\/div>\n<\/div>\n
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a trade war to an already very<\/div>\n<\/div>\n<\/div>\n
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vulnerable and weak economy well that<\/div>\n<\/div>\n<\/div>\n
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starts to sound a little bit like a<\/div>\n<\/div>\n<\/div>\n
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replay of the 1930s and the tremendous<\/div>\n<\/div>\n<\/div>\n
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depression that we experienced so that’s<\/div>\n<\/div>\n<\/div>\n
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a concern the investors are looking for<\/div>\n<\/div>\n<\/div>\n
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signs of an of a growing economy or a<\/div>\n<\/div>\n<\/div>\n
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possibility of growth and anything that<\/div>\n<\/div>\n<\/div>\n
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we’re threatened that is really a<\/div>\n<\/div>\n<\/div>\n
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problem the other issue that they’re<\/div>\n<\/div>\n<\/div>\n
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pointing to is that if you look at the<\/div>\n<\/div>\n<\/div>\n
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mobility Danita coming from smartphones<\/div>\n<\/div>\n<\/div>\n
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so we can track smartphones and we can<\/div>\n<\/div>\n<\/div>\n
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figure out if people are moving around<\/div>\n<\/div>\n<\/div>\n
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and where they’re moving around – Apple<\/div>\n<\/div>\n<\/div>\n
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has made these data available basically<\/div>\n<\/div>\n<\/div>\n
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in the US the lockdown the sheltering in<\/div>\n<\/div>\n<\/div>\n
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place the social distancing whatever you<\/div>\n<\/div>\n<\/div>\n
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want to call it it’s ended it’s over it<\/div>\n<\/div>\n<\/div>\n
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doesn’t matter what the governor’s say<\/div>\n<\/div>\n<\/div>\n
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it’s over people are congregating people<\/div>\n<\/div>\n<\/div>\n
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are traveling people are shopping my<\/div>\n<\/div>\n<\/div>\n
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wife and I drove around in our car and<\/div>\n<\/div>\n<\/div>\n
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we observe this just in our local area<\/div>\n<\/div>\n<\/div>\n
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and so people are tired of being indoors<\/div>\n<\/div>\n<\/div>\n
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and I certainly understand that<\/div>\n<\/div>\n<\/div>\n
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and that in the eyes of the money<\/div>\n<\/div>\n<\/div>\n
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managers I speak with that is likely to<\/div>\n<\/div>\n<\/div>\n
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lead to a second wave of the virus and<\/div>\n<\/div>\n<\/div>\n
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further problems and markets take that<\/div>\n<\/div>\n<\/div>\n
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very seriously so we have two things<\/div>\n<\/div>\n<\/div>\n
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that have come up that are potentially<\/div>\n<\/div>\n<\/div>\n
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big big issues that I will be tracking<\/div>\n<\/div>\n<\/div>\n
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going forward if you want to learn three<\/div>\n<\/div>\n<\/div>\n
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real-world setups that our traders use<\/div>\n<\/div>\n<\/div>\n
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including this simple setup that we<\/div>\n<\/div>\n<\/div>\n
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teach all of our new traders and the<\/div>\n<\/div>\n<\/div>\n
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setup that turned one of our traders<\/div>\n<\/div>\n<\/div>\n
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into a seven-figure big money earner<\/div>\n<\/div>\n<\/div>\n
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check out the free webinar that were<\/div>\n<\/div>\n<\/div>\n
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they running just go ahead and click the<\/div>\n<\/div>\n<\/div>\n
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link that should be appearing right now<\/div>\n<\/div>\n<\/div>\n
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at the top right hand corner of your<\/div>\n<\/div>\n<\/div>\n
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screen that’s gonna open up this free<\/div>\n<\/div>\n<\/div>\n
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registration page in the new window so<\/div>\n<\/div>\n<\/div>\n
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don’t worry you’re not going to lose<\/div>\n<\/div>\n<\/div>\n
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this video you’re gonna learn more in a<\/div>\n<\/div>\n<\/div>\n
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couple of hours from this trading<\/div>\n<\/div>\n<\/div>\n
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workshop then from years of online<\/div>\n<\/div>\n<\/div>\n
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education after dr. Timbers remarks what<\/div>\n<\/div>\n<\/div>\n
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we’ll do is we will start to drill down<\/div>\n<\/div>\n<\/div>\n
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into specific names we will start to<\/div>\n<\/div>\n<\/div>\n
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talk about the stocks that are gonna be<\/div>\n<\/div>\n<\/div>\n
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most in play that is what we’re going to<\/div>\n<\/div>\n<\/div>\n
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be thinking about so for a day like<\/div>\n<\/div>\n<\/div>\n
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today it’s a little bit early so or late<\/div>\n<\/div>\n<\/div>\n
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and in the sense of sorry like don’t<\/div>\n<\/div>\n<\/div>\n
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worry everyone here is trading the US<\/div>\n<\/div>\n<\/div>\n
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market so we’re going though so for us<\/div>\n<\/div>\n<\/div>\n
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it’s a little bit it’s a little bit<\/div>\n<\/div>\n<\/div>\n
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early but we’re gonna look at you know a<\/div>\n<\/div>\n<\/div>\n
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company like Gilead Gilead is getting up<\/div>\n<\/div>\n<\/div>\n
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a little bit it’s in play it seems like<\/div>\n<\/div>\n<\/div>\n
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their drug will be used by more people<\/div>\n<\/div>\n<\/div>\n
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and the information coming out from them<\/div>\n<\/div>\n<\/div>\n
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is getting a little bit more promising<\/div>\n<\/div>\n<\/div>\n
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based on what people’s perceptions are<\/div>\n<\/div>\n<\/div>\n
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we’re gonna be looking at the airline’s<\/div>\n<\/div>\n<\/div>\n
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Warren Buffett headline across any of<\/div>\n<\/div>\n<\/div>\n
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the major news outlets is that he’s<\/div>\n<\/div>\n<\/div>\n
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turned on his opinion of the airlines<\/div>\n<\/div>\n<\/div>\n
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and thinks that those businesses are<\/div>\n<\/div>\n<\/div>\n
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materially different going forward we’re<\/div>\n<\/div>\n<\/div>\n
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gonna look at a company like CGC that<\/div>\n<\/div>\n<\/div>\n
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just put out news on how their company<\/div>\n<\/div>\n<\/div>\n
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is doing overall we’re gonna be trading<\/div>\n<\/div>\n<\/div>\n
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the overall markets because they<\/div>\n<\/div>\n<\/div>\n
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performed poorly overnight they’re<\/div>\n<\/div>\n<\/div>\n
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certainly they certainly are in play<\/div>\n<\/div>\n<\/div>\n
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we’ll look at volatility to determine<\/div>\n<\/div>\n<\/div>\n
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whether or not we’re going to trade the<\/div>\n<\/div>\n<\/div>\n
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overall markets when volatility is<\/div>\n<\/div>\n<\/div>\n
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elevated we will trade spy and do an IWM<\/div>\n<\/div>\n<\/div>\n
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+ bxx and UV XY we will trade them on a<\/div>\n<\/div>\n<\/div>\n
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momentum basis we will scalp them if we<\/div>\n<\/div>\n<\/div>\n
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start to see direction we will swing<\/div>\n<\/div>\n<\/div>\n
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them we’ll go around the room<\/div>\n<\/div>\n<\/div>\n
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and our junior traders will share their<\/div>\n<\/div>\n<\/div>\n
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best ideas those are gonna be the first<\/div>\n<\/div>\n<\/div>\n
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ones that go on a day like today but<\/div>\n<\/div>\n<\/div>\n
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we’ll also look at second day plays you<\/div>\n<\/div>\n<\/div>\n
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know what what was really working on<\/div>\n<\/div>\n<\/div>\n
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Friday so a company like Ino is<\/div>\n<\/div>\n<\/div>\n
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something we’ve been watching maybe<\/div>\n<\/div>\n<\/div>\n
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something like mRNA has been a<\/div>\n<\/div>\n<\/div>\n
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high-flyer that you’ve really been<\/div>\n<\/div>\n<\/div>\n
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watching and we’ll take we’ll take a<\/div>\n<\/div>\n<\/div>\n
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look at the really significant levels<\/div>\n<\/div>\n<\/div>\n
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that we saw from Friday and some of<\/div>\n<\/div>\n<\/div>\n
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those names Tesla is a company that was<\/div>\n<\/div>\n<\/div>\n
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in the news on Friday after Elon Musk<\/div>\n<\/div>\n<\/div>\n
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put out some of those funny tweets which<\/div>\n<\/div>\n<\/div>\n
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nobody can really understand in the<\/div>\n<\/div>\n<\/div>\n
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middle of the day and cause Tesla to<\/div>\n<\/div>\n<\/div>\n
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drop quite a bit so so that will be<\/div>\n<\/div>\n<\/div>\n
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something we’re looking for is what we<\/div>\n<\/div>\n<\/div>\n
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call a second day play something that<\/div>\n<\/div>\n<\/div>\n
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may follow through but you had asked<\/div>\n<\/div>\n<\/div>\n
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previously you know hey what are some of<\/div>\n<\/div>\n<\/div>\n
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the things that you know we’re doing you<\/div>\n<\/div>\n<\/div>\n
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know before the open and we are the way<\/div>\n<\/div>\n<\/div>\n
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that we start oh is my partner Steve<\/div>\n<\/div>\n<\/div>\n
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Spencer will hold his a meeting so he is<\/div>\n<\/div>\n<\/div>\n
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the experienced 20-plus year trader and<\/div>\n<\/div>\n<\/div>\n
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he will share levels technical levels of<\/div>\n<\/div>\n<\/div>\n
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importance in the stocks that are in<\/div>\n<\/div>\n<\/div>\n
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play where you might find buying and<\/div>\n<\/div>\n<\/div>\n
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selling that is a 15-minute meeting that<\/div>\n<\/div>\n<\/div>\n
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he broadcast to all of the new traders<\/div>\n<\/div>\n<\/div>\n
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and actually even people in our<\/div>\n<\/div>\n<\/div>\n
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education community at us and be<\/div>\n<\/div>\n<\/div>\n
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training then our form manager has an AM<\/div>\n<\/div>\n<\/div>\n
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meeting as well this is for the newer<\/div>\n<\/div>\n<\/div>\n
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traders this is where we go around the<\/div>\n<\/div>\n<\/div>\n
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room and each of the junior traders<\/div>\n<\/div>\n<\/div>\n
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gives their best idea and will comment<\/div>\n<\/div>\n<\/div>\n
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hey that’s a good idea hey that isn’t a<\/div>\n<\/div>\n<\/div>\n
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good idea why don’t you take a look at<\/div>\n<\/div>\n<\/div>\n
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this you didn’t think about this when<\/div>\n<\/div>\n<\/div>\n
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preparing that idea but we’re looking<\/div>\n<\/div>\n<\/div>\n
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for stocks that in play and I cover this<\/div>\n<\/div>\n<\/div>\n
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in our first training program SMB DNA<\/div>\n<\/div>\n<\/div>\n
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we’re looking for stocks that have a<\/div>\n<\/div>\n<\/div>\n
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catalyst whether that’s a news catalyst<\/div>\n<\/div>\n<\/div>\n
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or technical catalyst the technical<\/div>\n<\/div>\n<\/div>\n
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analysis catalyst we want something<\/div>\n<\/div>\n<\/div>\n
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that’s going to be moving today<\/div>\n<\/div>\n<\/div>\n
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there’s something behind it so the<\/div>\n<\/div>\n<\/div>\n
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airlines have a news catalyst behind it<\/div>\n<\/div>\n<\/div>\n
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today Warren Buffett is telling the<\/div>\n<\/div>\n<\/div>\n
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world that he is not as confident in the<\/div>\n<\/div>\n<\/div>\n
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airline stocks as yesterday that’s new<\/div>\n<\/div>\n<\/div>\n
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unusual news that is going to be in play<\/div>\n<\/div>\n<\/div>\n
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Gilead has a news catalyst behind it<\/div>\n<\/div>\n<\/div>\n
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that is going to be in play CGC has a<\/div>\n<\/div>\n<\/div>\n
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news catalyst behind it that’s going to<\/div>\n<\/div>\n<\/div>\n
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be in play Tesla will have technical<\/div>\n<\/div>\n<\/div>\n
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catalysts behind it<\/div>\n<\/div>\n<\/div>\n
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from day one yesterday that will be in<\/div>\n<\/div>\n<\/div>\n
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play we’re looking for oversold and<\/div>\n<\/div>\n<\/div>\n
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overbought conditions to tee up<\/div>\n<\/div>\n<\/div>\n
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technical trades that we may look for<\/div>\n<\/div>\n<\/div>\n
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going forward we will spend a lot of<\/div>\n<\/div>\n<\/div>\n
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time looking to short things that have<\/div>\n<\/div>\n<\/div>\n
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been overbought we’re looking for ways<\/div>\n<\/div>\n<\/div>\n
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to buy things that have been oversold<\/div>\n<\/div>\n<\/div>\n
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we’ll have an audio and a chat intraday<\/div>\n<\/div>\n<\/div>\n
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to communicate with each other and so<\/div>\n<\/div>\n<\/div>\n
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you had asked hey what gets us<\/div>\n<\/div>\n<\/div>\n
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interested right on the open for<\/div>\n<\/div>\n<\/div>\n
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particular trades Eleanor you’d sent<\/div>\n<\/div>\n<\/div>\n
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over a question for dr. Steinberg and<\/div>\n<\/div>\n<\/div>\n
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myself and dr. Steinberg er maybe you’ll<\/div>\n<\/div>\n<\/div>\n
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talk a little bit about the volume right<\/div>\n<\/div>\n<\/div>\n
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on the open that you teach us and our<\/div>\n<\/div>\n<\/div>\n
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newer traders so much about that tips<\/div>\n<\/div>\n<\/div>\n
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the hands of big orders from the big<\/div>\n<\/div>\n<\/div>\n
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money traders<\/div>\n<\/div>\n<\/div>\n
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how they’re leaving footprints for the<\/div>\n<\/div>\n<\/div>\n
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rest of us to follow yeah I would be<\/div>\n<\/div>\n<\/div>\n
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delighted like if I could just back up<\/div>\n<\/div>\n<\/div>\n
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here because I think you’re saying<\/div>\n<\/div>\n<\/div>\n
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something very important when when I<\/div>\n<\/div>\n<\/div>\n
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first started working with the SMB<\/div>\n<\/div>\n<\/div>\n
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traders the one lesson that I came away<\/div>\n<\/div>\n<\/div>\n
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with that I hadn’t appreciated in my<\/div>\n<\/div>\n<\/div>\n
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prior work is what you trade is just as<\/div>\n<\/div>\n<\/div>\n
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important as how you trade I think what<\/div>\n<\/div>\n<\/div>\n
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the morning meeting accomplishes is<\/div>\n<\/div>\n<\/div>\n
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focusing traders on space<\/div>\n<\/div>\n<\/div>\n
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pick stocks specific areas of<\/div>\n<\/div>\n<\/div>\n
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opportunity that morning right here<\/div>\n<\/div>\n<\/div>\n
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right now and the opportunity set is so<\/div>\n<\/div>\n<\/div>\n
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much greater in those areas than if they<\/div>\n<\/div>\n<\/div>\n
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were just generically trading an overall<\/div>\n<\/div>\n<\/div>\n
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index that it accounts for a large part<\/div>\n<\/div>\n<\/div>\n
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of their success one great way to figure<\/div>\n<\/div>\n<\/div>\n
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out what’s in play and where the<\/div>\n<\/div>\n<\/div>\n
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opportunity is is to work as a team and<\/div>\n<\/div>\n<\/div>\n
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share ideas and that’s what the morning<\/div>\n<\/div>\n<\/div>\n
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\n
meeting accomplishes okay so early<\/div>\n<\/div>\n<\/div>\n
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morning volume you know who who’s<\/div>\n<\/div>\n<\/div>\n
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involved in the market during early<\/div>\n<\/div>\n<\/div>\n
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hours the large institutions that I work<\/div>\n<\/div>\n<\/div>\n
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with they have to participate when there<\/div>\n<\/div>\n<\/div>\n
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\n
is greatest liquidity and in the US<\/div>\n<\/div>\n<\/div>\n
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\n
stock market that’s early in the day and<\/div>\n<\/div>\n<\/div>\n
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late in the day and so early in the day<\/div>\n<\/div>\n<\/div>\n
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you will see the buying and selling<\/div>\n<\/div>\n<\/div>\n
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activity of large institutional<\/div>\n<\/div>\n<\/div>\n
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participants that move markets<\/div>\n<\/div>\n<\/div>\n
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these are portfolio managers trading<\/div>\n<\/div>\n<\/div>\n
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hundreds of millions of dollars in their<\/div>\n<\/div>\n<\/div>\n
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portfolio and sometimes north of 1<\/div>\n<\/div>\n<\/div>\n
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billion dollars and it also includes<\/div>\n<\/div>\n<\/div>\n
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very large participants like like the<\/div>\n<\/div>\n<\/div>\n
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one I was talking with this morning<\/div>\n<\/div>\n<\/div>\n
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where they’re really not even doing<\/div>\n<\/div>\n<\/div>\n
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trading they’re an asset manager and<\/div>\n<\/div>\n<\/div>\n
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they’re moving very large flows from<\/div>\n<\/div>\n<\/div>\n
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pension funds and sovereign wealth<\/div>\n<\/div>\n<\/div>\n
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organizations much larger than hedge<\/div>\n<\/div>\n<\/div>\n
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funds so they’re all inste they’re all<\/div>\n<\/div>\n<\/div>\n
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active in those early hours and we can<\/div>\n<\/div>\n<\/div>\n
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use tools to figure out are they leaning<\/div>\n<\/div>\n<\/div>\n
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toward the upside or downside do they<\/div>\n<\/div>\n<\/div>\n
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have a directional bias for the day’s<\/div>\n<\/div>\n<\/div>\n
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trade so when we look at Friday’s trade<\/div>\n<\/div>\n<\/div>\n
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for instance we could see that<\/div>\n<\/div>\n<\/div>\n
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there was persistent hitting of bids we<\/div>\n<\/div>\n<\/div>\n
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saw that when orders came in I I should<\/div>\n<\/div>\n<\/div>\n
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say transactions came in that were<\/div>\n<\/div>\n<\/div>\n
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occurring at the market offer price the<\/div>\n<\/div>\n<\/div>\n
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market was not able to go up instead<\/div>\n<\/div>\n<\/div>\n
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those orders were absorbed and we saw<\/div>\n<\/div>\n<\/div>\n
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subsequent hitting of bids transaction<\/div>\n<\/div>\n<\/div>\n
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transactions occurring at the bid price<\/div>\n<\/div>\n<\/div>\n
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this is called a delta indicator which<\/div>\n<\/div>\n<\/div>\n
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meant that sellers were more aggressive<\/div>\n<\/div>\n<\/div>\n
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the same information was coming across<\/div>\n<\/div>\n<\/div>\n
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in the NY IC tip TI ck which tells us<\/div>\n<\/div>\n<\/div>\n
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how many stocks are trading on up ticks<\/div>\n<\/div>\n<\/div>\n
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– the number trading on down ticks and<\/div>\n<\/div>\n<\/div>\n
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that number started negative and stayed<\/div>\n<\/div>\n<\/div>\n
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\n
negative through much of the session so<\/div>\n<\/div>\n<\/div>\n
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we saw institutions aggressively selling<\/div>\n<\/div>\n<\/div>\n
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and when there was buying when we saw<\/div>\n<\/div>\n<\/div>\n
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positive up ticks when we saw<\/div>\n<\/div>\n<\/div>\n
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transactions occurring at the market<\/div>\n<\/div>\n<\/div>\n
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offer price the market was barely able<\/div>\n<\/div>\n<\/div>\n
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to budge higher the buyers were trapped<\/div>\n<\/div>\n<\/div>\n
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\n
and that led to subsequent selling so by<\/div>\n<\/div>\n<\/div>\n
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seeing what the big players are doing we<\/div>\n<\/div>\n<\/div>\n
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\n
you and me are able to be more nimble<\/div>\n<\/div>\n<\/div>\n
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than they are and we can jump in front<\/div>\n<\/div>\n<\/div>\n
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of their orders and take advantage of<\/div>\n<\/div>\n<\/div>\n
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what they’re doing so Alan are you asked<\/div>\n<\/div>\n<\/div>\n
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\n
us dr. steam burger myself to answer a<\/div>\n<\/div>\n<\/div>\n
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couple of questions I’m gonna start with<\/div>\n<\/div>\n<\/div>\n
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one of them if that’s okay yeah please<\/div>\n<\/div>\n<\/div>\n
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go ahead<\/div>\n<\/div>\n<\/div>\n
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what are the most important processes<\/div>\n<\/div>\n<\/div>\n
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that you go through with your traders to<\/div>\n<\/div>\n<\/div>\n
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keep them motivated especially in these<\/div>\n<\/div>\n<\/div>\n
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times or do you expect your traders to<\/div>\n<\/div>\n<\/div>\n
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self-regulate themselves based on your<\/div>\n<\/div>\n<\/div>\n
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screening criteria before hiring one of<\/div>\n<\/div>\n<\/div>\n
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the traders on our desk that dr.<\/div>\n<\/div>\n<\/div>\n
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\n
Steinberg and I are very fortunate to<\/div>\n<\/div>\n<\/div>\n
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work with is shark so when you become a<\/div>\n<\/div>\n<\/div>\n
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great<\/div>\n<\/div>\n<\/div>\n
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traitor on our desk you earned a<\/div>\n<\/div>\n<\/div>\n
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nickname<\/div>\n<\/div>\n<\/div>\n
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\n
and so Kenny’s nickname is shark and he<\/div>\n<\/div>\n<\/div>\n
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\n
certainly is a great trader has become a<\/div>\n<\/div>\n<\/div>\n
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great trader started out of college<\/div>\n<\/div>\n<\/div>\n
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didn’t know very much about trading if<\/div>\n<\/div>\n<\/div>\n
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anything at all<\/div>\n<\/div>\n<\/div>\n
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and grew with our firm<\/div>\n<\/div>\n<\/div>\n
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I grew as a trader from the beginning to<\/div>\n<\/div>\n<\/div>\n
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now a really terrific trader so the one<\/div>\n<\/div>\n<\/div>\n
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\n
of the really tremendous milestones that<\/div>\n<\/div>\n<\/div>\n
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\n
you can hit at our firm is to be able to<\/div>\n<\/div>\n<\/div>\n
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\n
make two million dollars at in P&L for<\/div>\n<\/div>\n<\/div>\n
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the year and if you earn more than two<\/div>\n<\/div>\n<\/div>\n
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\n
million dollars net and trading profits<\/div>\n<\/div>\n<\/div>\n
\n
\n
for the year you earn a black shirt and<\/div>\n<\/div>\n<\/div>\n
\n
\n
this is shark receiving his black shirt<\/div>\n<\/div>\n<\/div>\n
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\n
I remember and it’s such a great<\/div>\n<\/div>\n<\/div>\n
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\n
question that you’ve posed for us I<\/div>\n<\/div>\n<\/div>\n
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remember the first time that shark had<\/div>\n<\/div>\n<\/div>\n
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\n
one of those really really big gears he<\/div>\n<\/div>\n<\/div>\n
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did a yearly review and set goals for<\/div>\n<\/div>\n<\/div>\n
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\n
the next year we do this with all of our<\/div>\n<\/div>\n<\/div>\n
\n
\n
traders and in his goals for the year he<\/div>\n<\/div>\n<\/div>\n
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\n
set out future goals which when I read<\/div>\n<\/div>\n<\/div>\n
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\n
it’s just gave me pause I was taken<\/div>\n<\/div>\n<\/div>\n
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\n
aback I had my jaw dropped I I was<\/div>\n<\/div>\n<\/div>\n
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\n
stunned and he had laid out what he<\/div>\n<\/div>\n<\/div>\n
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\n
wanted to accomplish going forward as a<\/div>\n<\/div>\n<\/div>\n
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\n
trader after just having this monster<\/div>\n<\/div>\n<\/div>\n
\n
\n
year and you know when I started a firm<\/div>\n<\/div>\n<\/div>\n
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\n
I always want to think that our traders<\/div>\n<\/div>\n<\/div>\n
\n
\n
are gonna grow and do really well and<\/div>\n<\/div>\n<\/div>\n
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\n
the firm that I started at and learned<\/div>\n<\/div>\n<\/div>\n
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\n
that had had great traders and an<\/div>\n<\/div>\n<\/div>\n
\n
\n
tremendous success but he wrote in his<\/div>\n<\/div>\n<\/div>\n
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\n
yearly reviews his next goal was<\/div>\n<\/div>\n<\/div>\n
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\n
to mate eight to meet to make eight<\/div>\n<\/div>\n<\/div>\n
\n
\n
figures as a traitor and so the the best<\/div>\n<\/div>\n<\/div>\n
\n
\n
traders the elite traders don’t need to<\/div>\n<\/div>\n<\/div>\n
\n
\n
be motivated they’re self-motivated in<\/div>\n<\/div>\n<\/div>\n
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\n
fact I would I would look at it a little<\/div>\n<\/div>\n<\/div>\n
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bit differently it’s our job to make<\/div>\n<\/div>\n<\/div>\n
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sure that they are in an environment<\/div>\n<\/div>\n<\/div>\n
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\n
where they can keep learning it’s our<\/div>\n<\/div>\n<\/div>\n
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job to make sure that we have the<\/div>\n<\/div>\n<\/div>\n
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resources that they can do more that we<\/div>\n<\/div>\n<\/div>\n
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have the infrastructure where they can<\/div>\n<\/div>\n<\/div>\n
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trade more products they can trade<\/div>\n<\/div>\n<\/div>\n
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\n
bigger they can trade with more<\/div>\n<\/div>\n<\/div>\n
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sophistication they can be around newer<\/div>\n<\/div>\n<\/div>\n
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traders that will inspire them to keep<\/div>\n<\/div>\n<\/div>\n
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\n
getting better experienced traders from<\/div>\n<\/div>\n<\/div>\n
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whom they can learn technology that will<\/div>\n<\/div>\n<\/div>\n
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\n
help them trade better and bigger that’s<\/div>\n<\/div>\n<\/div>\n
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\n
what that’s what we see with with with<\/div>\n<\/div>\n<\/div>\n
\n
\n
our guys and I I’ll mention one more<\/div>\n<\/div>\n<\/div>\n
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\n
thing which is so recently I was in<\/div>\n<\/div>\n<\/div>\n
\n
\n
London and mr. Lee you mentioned how<\/div>\n<\/div>\n<\/div>\n
\n
\n
this is a period of time where you have<\/div>\n<\/div>\n<\/div>\n
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\n
been as busy as ever we’ve been we’ve<\/div>\n<\/div>\n<\/div>\n
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\n
been busy as well and one of the trips I<\/div>\n<\/div>\n<\/div>\n
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\n
took recently was to a futures firm in<\/div>\n<\/div>\n<\/div>\n
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\n
London and their traders asked me a very<\/div>\n<\/div>\n<\/div>\n
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\n
similar question these were these were<\/div>\n<\/div>\n<\/div>\n
\n
\n
guys who were making a lot of money as<\/div>\n<\/div>\n<\/div>\n
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\n
well and interested in you know how do<\/div>\n<\/div>\n<\/div>\n
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\n
they keep the momentum going how do they<\/div>\n<\/div>\n<\/div>\n
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\n
keep their motivation to keep doing<\/div>\n<\/div>\n<\/div>\n
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\n
better when after they’ve made so much<\/div>\n<\/div>\n<\/div>\n
\n
\n
money and dr. Steinberger has had one of<\/div>\n<\/div>\n<\/div>\n
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\n
the great talks that I’ve actually ever<\/div>\n<\/div>\n<\/div>\n
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\n
heard in our training room which maybe<\/div>\n<\/div>\n<\/div>\n
\n
\n
he can talk a little bit about later but<\/div>\n<\/div>\n<\/div>\n
\n
\n
but I but what I shared with the traders<\/div>\n<\/div>\n<\/div>\n
\n
\n
at this Futures firm and what dr.<\/div>\n<\/div>\n<\/div>\n
\n
\n
Steinberg will share with our traders<\/div>\n<\/div>\n<\/div>\n
\n
\n
and what I’ll share with you guys is<\/div>\n<\/div>\n<\/div>\n
\n
\n
good is not good enough<\/div>\n<\/div>\n<\/div>\n
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\n
and the great traders don’t accept good<\/div>\n<\/div>\n<\/div>\n
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\n
in anything they do they don’t accept it<\/div>\n<\/div>\n<\/div>\n
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\n
in their daily reviews they don’t accept<\/div>\n<\/div>\n<\/div>\n
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\n
it with their work on technology they<\/div>\n<\/div>\n<\/div>\n
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\n
don’t work they don’t accept it with<\/div>\n<\/div>\n<\/div>\n
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their individual workouts with their<\/div>\n<\/div>\n<\/div>\n
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\n
diet with their sleep patterns they<\/div>\n<\/div>\n<\/div>\n
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\n
don’t accept it in any form of their<\/div>\n<\/div>\n<\/div>\n
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\n
life and their it’s across the board<\/div>\n<\/div>\n<\/div>\n
\n
\n
and so it’s it’s not it’s it’s not about<\/div>\n<\/div>\n<\/div>\n
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\n
for them money or getting to a place in<\/div>\n<\/div>\n<\/div>\n
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their career where they’ve achieved<\/div>\n<\/div>\n<\/div>\n
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things it what what they’re interested<\/div>\n<\/div>\n<\/div>\n
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\n
in doing is continually trying to get<\/div>\n<\/div>\n<\/div>\n
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\n
better<\/div>\n<\/div>\n<\/div>\n
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\n
might I give an analogy yeah yeah if I<\/div>\n<\/div>\n<\/div>\n
\n
\n
could give it an analogy okay so I’m a<\/div>\n<\/div>\n<\/div>\n
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\n
psychologist right and I’ve been<\/div>\n<\/div>\n<\/div>\n
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\n
reasonably successful from a financial<\/div>\n<\/div>\n<\/div>\n
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\n
vantage point as a psychologist both<\/div>\n<\/div>\n<\/div>\n
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\n
working with financial firms teaching at<\/div>\n<\/div>\n<\/div>\n
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\n
medical school etc also through my<\/div>\n<\/div>\n<\/div>\n
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\n
investments okay so I’ve made a good<\/div>\n<\/div>\n<\/div>\n
\n
\n
amount of money as a psychologist so the<\/div>\n<\/div>\n<\/div>\n
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\n
question could come up you’ve made so<\/div>\n<\/div>\n<\/div>\n
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\n
much money how do you find the<\/div>\n<\/div>\n<\/div>\n
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\n
motivation to want to keep helping<\/div>\n<\/div>\n<\/div>\n
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\n
people like you’ve already made your<\/div>\n<\/div>\n<\/div>\n
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\n
money why should you want to go help<\/div>\n<\/div>\n<\/div>\n
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\n
people it has nothing to do with money<\/div>\n<\/div>\n<\/div>\n
\n
\n
when you are invested in the process<\/div>\n<\/div>\n<\/div>\n
\n
\n
what you do when what you do is<\/div>\n<\/div>\n<\/div>\n
\n
\n
meaningful to you then the P&L is not<\/div>\n<\/div>\n<\/div>\n
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\n
your primary motivator and I think that<\/div>\n<\/div>\n<\/div>\n
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\n
happens with great trainers I think that<\/div>\n<\/div>\n<\/div>\n
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\n
happens with great folks in any<\/div>\n<\/div>\n<\/div>\n
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\n
profession traders ask how long do you<\/div>\n<\/div>\n<\/div>\n
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\n
sitting for a trader to develop<\/div>\n<\/div>\n<\/div>\n
\n
\n
especially after seeing their potential<\/div>\n<\/div>\n<\/div>\n
\n
\n
do you believe there are natural-born<\/div>\n<\/div>\n<\/div>\n
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\n
traders those that only need a little<\/div>\n<\/div>\n<\/div>\n
\n
\n
guidance to become successful one of the<\/div>\n<\/div>\n<\/div>\n
\n
\n
resources that SMB shares with the<\/div>\n<\/div>\n<\/div>\n
\n
\n
trading community is our YouTube channel<\/div>\n<\/div>\n<\/div>\n
\n
\n
go to youtube and type in SMB capital<\/div>\n<\/div>\n<\/div>\n
\n
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and we share a bunch of free videos to<\/div>\n<\/div>\n<\/div>\n
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help traders improve on our channel so<\/div>\n<\/div>\n<\/div>\n
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recently we had one of our junior<\/div>\n<\/div>\n<\/div>\n
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traders present and in the back<\/div>\n<\/div>\n<\/div>\n
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story – one of our junior traders<\/div>\n<\/div>\n<\/div>\n
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presenting his in March we had the best<\/div>\n<\/div>\n<\/div>\n
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trading month that we’ve ever had it was<\/div>\n<\/div>\n<\/div>\n
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a historic month for our traders and dr.<\/div>\n<\/div>\n<\/div>\n
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Steinberg and I were discussing how do<\/div>\n<\/div>\n<\/div>\n
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we leverage the success of all of our<\/div>\n<\/div>\n<\/div>\n
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traders in perpetuity so that everybody<\/div>\n<\/div>\n<\/div>\n
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can learn from the success of our star<\/div>\n<\/div>\n<\/div>\n
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trader there’s a junior traders that did<\/div>\n<\/div>\n<\/div>\n
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really well our middle-class traders who<\/div>\n<\/div>\n<\/div>\n
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reach new levels and so one of the<\/div>\n<\/div>\n<\/div>\n
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junior traders who had done particularly<\/div>\n<\/div>\n<\/div>\n
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well you know was moving into a second<\/div>\n<\/div>\n<\/div>\n
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year and it wasn’t really until the<\/div>\n<\/div>\n<\/div>\n
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second year and this this was a trader<\/div>\n<\/div>\n<\/div>\n
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who was a very top recruit by our firm<\/div>\n<\/div>\n<\/div>\n
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showed experience that was promising<\/div>\n<\/div>\n<\/div>\n
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showed bandwidth that was promising<\/div>\n<\/div>\n<\/div>\n
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really a strong passion for trading<\/div>\n<\/div>\n<\/div>\n
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which was really exciting but you know<\/div>\n<\/div>\n<\/div>\n
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in his first year you know not much P&L<\/div>\n<\/div>\n<\/div>\n
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but now is really endear to really<\/div>\n<\/div>\n<\/div>\n
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starting to do pretty well and he did a<\/div>\n<\/div>\n<\/div>\n
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video about four changes he’s made that<\/div>\n<\/div>\n<\/div>\n
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have helped him do much better and for<\/div>\n<\/div>\n<\/div>\n
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him it was rigidity and routine<\/div>\n<\/div>\n<\/div>\n
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his size and risk management being more<\/div>\n<\/div>\n<\/div>\n
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methodical trading his psychological<\/div>\n<\/div>\n<\/div>\n
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strengths selectivity and capitalization<\/div>\n<\/div>\n<\/div>\n
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through confirmation but but and you<\/div>\n<\/div>\n<\/div>\n
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know he’s trading probably as well<\/div>\n<\/div>\n<\/div>\n
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pound-for-pound experience for<\/div>\n<\/div>\n<\/div>\n
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experiences anyone at our firm but it’s<\/div>\n<\/div>\n<\/div>\n
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it’s taken some time uh Mike I jump in<\/div>\n<\/div>\n<\/div>\n
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yeah yeah so that traitor that you’re<\/div>\n<\/div>\n<\/div>\n
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referring to you know he had a style of<\/div>\n<\/div>\n<\/div>\n
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trading that was working for him and he<\/div>\n<\/div>\n<\/div>\n
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had gotten away from it and so being<\/div>\n<\/div>\n<\/div>\n
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able to accept who he is<\/div>\n<\/div>\n<\/div>\n
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what he does well what he sees well in<\/div>\n<\/div>\n<\/div>\n
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markets being able to accept that and<\/div>\n<\/div>\n<\/div>\n
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build upon that I think was an important<\/div>\n<\/div>\n<\/div>\n
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element of his success when he tried and<\/div>\n<\/div>\n<\/div>\n
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I see that this I’ve seen this to my own<\/div>\n<\/div>\n<\/div>\n
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trading over the years if I try to be<\/div>\n<\/div>\n<\/div>\n
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someone different from Who I am if I get<\/div>\n<\/div>\n<\/div>\n
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away from my strengths I don’t make<\/div>\n<\/div>\n<\/div>\n
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money and that’s what was happening with<\/div>\n<\/div>\n<\/div>\n
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this trader<\/div>\n<\/div>\n<\/div>\n
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and so acceptance of who he is and what<\/div>\n<\/div>\n<\/div>\n
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he does well really helped him turn<\/div>\n<\/div>\n<\/div>\n
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things around so there’s a traitor in<\/div>\n<\/div>\n<\/div>\n
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this picture I’m not gonna point out<\/div>\n<\/div>\n<\/div>\n
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which one who in March made over two and<\/div>\n<\/div>\n<\/div>\n
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a half million dollars and for the month<\/div>\n<\/div>\n<\/div>\n
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it wasn’t the top trader at our firm but<\/div>\n<\/div>\n<\/div>\n
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but monster monster month and last year<\/div>\n<\/div>\n<\/div>\n
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actually was the highest P&L trader at a<\/div>\n<\/div>\n<\/div>\n
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firm when when I met at we met him in<\/div>\n<\/div>\n<\/div>\n
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college he actually trained with us as a<\/div>\n<\/div>\n<\/div>\n
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trader in college he went through a<\/div>\n<\/div>\n<\/div>\n
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training program when he was in college<\/div>\n<\/div>\n<\/div>\n
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and I ended up hiring him after that<\/div>\n<\/div>\n<\/div>\n
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he in his first year he traded through<\/div>\n<\/div>\n<\/div>\n
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college and his first year he made about<\/div>\n<\/div>\n<\/div>\n
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$60,000 us his first full year trading<\/div>\n<\/div>\n<\/div>\n
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the second year he made about $180,000<\/div>\n<\/div>\n<\/div>\n
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but it wasn’t until the very last month<\/div>\n<\/div>\n<\/div>\n
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of his second year that he made almost<\/div>\n<\/div>\n<\/div>\n
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all of that and so you know his first<\/div>\n<\/div>\n<\/div>\n
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month he’s kind of scuttling his first<\/div>\n<\/div>\n<\/div>\n
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year’s kind of scuttling his second year<\/div>\n<\/div>\n<\/div>\n
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he’s really doing almost nothing until<\/div>\n<\/div>\n<\/div>\n
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the very end of his second year and he’s<\/div>\n<\/div>\n<\/div>\n
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gone on to be you know one of the best<\/div>\n<\/div>\n<\/div>\n
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traders at our firm<\/div>\n<\/div>\n<\/div>\n
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last year the number one performer at<\/div>\n<\/div>\n<\/div>\n
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our firm and remember we have some<\/div>\n<\/div>\n<\/div>\n
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really great traders and you know the<\/div>\n<\/div>\n<\/div>\n
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thing about him is that he just has<\/div>\n<\/div>\n<\/div>\n
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extraordin extraordinary ability to<\/div>\n<\/div>\n<\/div>\n
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select stocks<\/div>\n<\/div>\n<\/div>\n
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I’m extraordinary I never don’t have a<\/div>\n<\/div>\n<\/div>\n
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trader as good as him at just<\/div>\n<\/div>\n<\/div>\n
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understanding when there’s just gonna be<\/div>\n<\/div>\n<\/div>\n
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a big order that comes into the<\/div>\n<\/div>\n<\/div>\n
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marketplace and he just gets in without<\/div>\n<\/div>\n<\/div>\n
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taking any heat on the trade he gets in<\/div>\n<\/div>\n<\/div>\n
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with tremendous size it’s almost like he<\/div>\n<\/div>\n<\/div>\n
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gets in and it’s like everybody else can<\/div>\n<\/div>\n<\/div>\n
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start buying now and it’s like how did<\/div>\n<\/div>\n<\/div>\n
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every time like how did he know that<\/div>\n<\/div>\n<\/div>\n
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that thing was really gonna go right now<\/div>\n<\/div>\n<\/div>\n
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I’ll see it when it starts to get going<\/div>\n<\/div>\n<\/div>\n
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but he’ll start getting in before it<\/div>\n<\/div>\n<\/div>\n
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even even gets going<\/div>\n<\/div>\n<\/div>\n
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he’s just extraordinary with the stock<\/div>\n<\/div>\n<\/div>\n
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selection and you know so you might say<\/div>\n<\/div>\n<\/div>\n
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oh he has this immense talent to find<\/div>\n<\/div>\n<\/div>\n
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stocks and and I think he probably does<\/div>\n<\/div>\n<\/div>\n
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have some talent but the truth is when<\/div>\n<\/div>\n<\/div>\n
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you break that down he has a he has a<\/div>\n<\/div>\n<\/div>\n
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vast network of people he’s talking to<\/div>\n<\/div>\n<\/div>\n
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he has a unique way that he develops a<\/div>\n<\/div>\n<\/div>\n
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stock selection<\/div>\n<\/div>\n<\/div>\n
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he has insight into what some big retail<\/div>\n<\/div>\n<\/div>\n
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traders are doing what some<\/div>\n<\/div>\n<\/div>\n
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sophisticated bigger institutional<\/div>\n<\/div>\n<\/div>\n
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traders might be thinking about he’s got<\/div>\n<\/div>\n<\/div>\n
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this really cool network that he’s<\/div>\n<\/div>\n<\/div>\n
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developed even though he’s kind of quiet<\/div>\n<\/div>\n<\/div>\n
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but he’s just reached out made<\/div>\n<\/div>\n<\/div>\n
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connections with people he’s chatting<\/div>\n<\/div>\n<\/div>\n
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with people he’s emailing with people<\/div>\n<\/div>\n<\/div>\n
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and he’s just put together is really<\/div>\n<\/div>\n<\/div>\n
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neat Network and it’s enabled him after<\/div>\n<\/div>\n<\/div>\n
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time to build this incredible skill of<\/div>\n<\/div>\n<\/div>\n
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stock selection and put it to use his<\/div>\n<\/div>\n<\/div>\n
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traders asked do you still allow your<\/div>\n<\/div>\n<\/div>\n
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traders to practice solely discretionary<\/div>\n<\/div>\n<\/div>\n
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trading given the onset of automation<\/div>\n<\/div>\n<\/div>\n
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yes we do<\/div>\n<\/div>\n<\/div>\n
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so when you come into our firm we train<\/div>\n<\/div>\n<\/div>\n
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you to be a discretionary trader you<\/div>\n<\/div>\n<\/div>\n
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take S&B DNA and then you take the<\/div>\n<\/div>\n<\/div>\n
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winning trader but then you’re also<\/div>\n<\/div>\n<\/div>\n
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taught how to use technology so there<\/div>\n<\/div>\n<\/div>\n
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are classes where you learn how to build<\/div>\n<\/div>\n<\/div>\n
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alerts we learn how to build filters<\/div>\n<\/div>\n<\/div>\n
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where you learn how to build automated<\/div>\n<\/div>\n<\/div>\n
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models you’re expected to be able to do<\/div>\n<\/div>\n<\/div>\n
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all three of them the last trader to<\/div>\n<\/div>\n<\/div>\n
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earn a green shirt at our firm you earn<\/div>\n<\/div>\n<\/div>\n
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a green shirt if you make $1,000,000 net<\/div>\n<\/div>\n<\/div>\n
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and trading P&L for the year that’s sort<\/div>\n<\/div>\n<\/div>\n
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of the big first milestone that you get<\/div>\n<\/div>\n<\/div>\n
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at our careers to earn a green shirt a<\/div>\n<\/div>\n<\/div>\n
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green shirt hang actually on our trading<\/div>\n<\/div>\n<\/div>\n
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floor for something for people to aspire<\/div>\n<\/div>\n<\/div>\n
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to and so the last guy<\/div>\n<\/div>\n<\/div>\n
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firstly hit green shirt status is<\/div>\n<\/div>\n<\/div>\n
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somebody who had called hybrid trader<\/div>\n<\/div>\n<\/div>\n
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somebody who trades with discretion but<\/div>\n<\/div>\n<\/div>\n
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also uses technology to express ideas to<\/div>\n<\/div>\n<\/div>\n
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define the best trades for him to trade<\/div>\n<\/div>\n<\/div>\n
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so on our desk we have alerts that<\/div>\n<\/div>\n<\/div>\n
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alerts you to your favorite setups we<\/div>\n<\/div>\n<\/div>\n
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have scripts where you can automatically<\/div>\n<\/div>\n<\/div>\n
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get into certain setups that hit the<\/div>\n<\/div>\n<\/div>\n
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market place we have automated models<\/div>\n<\/div>\n<\/div>\n
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rules n rules out to be able to trade<\/div>\n<\/div>\n<\/div>\n
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particular market opportunities that you<\/div>\n<\/div>\n<\/div>\n
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define and so I’ve seen and and I think<\/div>\n<\/div>\n<\/div>\n
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this is a really important question<\/div>\n<\/div>\n<\/div>\n
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because I’ve seen traders who were not<\/div>\n<\/div>\n<\/div>\n
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gonna make it<\/div>\n<\/div>\n<\/div>\n
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as solely discretionary traders become<\/div>\n<\/div>\n<\/div>\n
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seven-figure trader they were not gonna<\/div>\n<\/div>\n<\/div>\n
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make it as solely discretionary traders<\/div>\n<\/div>\n<\/div>\n
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and there are certainly traders do if<\/div>\n<\/div>\n<\/div>\n
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you made them be quants or automated<\/div>\n<\/div>\n<\/div>\n
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traders would make it as well but I’ve<\/div>\n<\/div>\n<\/div>\n
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but I’ve also seen traders who were just<\/div>\n<\/div>\n<\/div>\n
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gonna be okay as traders they were going<\/div>\n<\/div>\n<\/div>\n
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to be middle-class traders but with when<\/div>\n<\/div>\n<\/div>\n
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armed with technology have gone on to<\/div>\n<\/div>\n<\/div>\n
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become seven-figure traders and so one<\/div>\n<\/div>\n<\/div>\n
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of the things we do encourage our<\/div>\n<\/div>\n<\/div>\n
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traders at our desk is to have a weekly<\/div>\n<\/div>\n<\/div>\n
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meeting with their teams to discuss the<\/div>\n<\/div>\n<\/div>\n
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technology they can be building to find<\/div>\n<\/div>\n<\/div>\n
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better trading opportunities what alerts<\/div>\n<\/div>\n<\/div>\n
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what scripts and what automated models<\/div>\n<\/div>\n<\/div>\n
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they can be building together to<\/div>\n<\/div>\n<\/div>\n
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increase their P&L our traders ask how<\/div>\n<\/div>\n<\/div>\n
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have you adjusted your trading style and<\/div>\n<\/div>\n<\/div>\n
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dr. steam Berger if I can ask you to<\/div>\n<\/div>\n<\/div>\n
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answer this and strategies given all the<\/div>\n<\/div>\n<\/div>\n
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events that have happened leading up to<\/div>\n<\/div>\n<\/div>\n
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what the crisis has evolved to today yes<\/div>\n<\/div>\n<\/div>\n
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what yeah what you’ve talked about with<\/div>\n<\/div>\n<\/div>\n
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the SME traders is the idea of plain<\/div>\n<\/div>\n<\/div>\n
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booking the idea of studying the ways in<\/div>\n<\/div>\n<\/div>\n
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which the market sets up and the ways in<\/div>\n<\/div>\n<\/div>\n
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which you best try<\/div>\n<\/div>\n<\/div>\n
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those setups the challenge is that<\/div>\n<\/div>\n<\/div>\n
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opportunities set up differently in<\/div>\n<\/div>\n<\/div>\n
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different market environments when we<\/div>\n<\/div>\n<\/div>\n
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get a very volatile market where the VIX<\/div>\n<\/div>\n<\/div>\n
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\n
was around 60 as opposed to January when<\/div>\n<\/div>\n<\/div>\n
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we had a VIX more like 12 markets move<\/div>\n<\/div>\n<\/div>\n
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differently they extend for example<\/div>\n<\/div>\n<\/div>\n
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during the volatile period when we had<\/div>\n<\/div>\n<\/div>\n
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the big decline breakout trades worked<\/div>\n<\/div>\n<\/div>\n
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really really well a stock or the index<\/div>\n<\/div>\n<\/div>\n
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would trade in a range and breakout from<\/div>\n<\/div>\n<\/div>\n
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that range on good volume and you could<\/div>\n<\/div>\n<\/div>\n
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\n
count on that breakout move extending<\/div>\n<\/div>\n<\/div>\n
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you could as they say nail-and-bail you<\/div>\n<\/div>\n<\/div>\n
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\n
could get in on the breakout it goes<\/div>\n<\/div>\n<\/div>\n
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your way quickly take some profits if<\/div>\n<\/div>\n<\/div>\n
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you try doing that in the low volatility<\/div>\n<\/div>\n<\/div>\n
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environment you wait for the breakout<\/div>\n<\/div>\n<\/div>\n
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it’s already moved and it’s ready to<\/div>\n<\/div>\n<\/div>\n
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reverse and so that same breakout trade<\/div>\n<\/div>\n<\/div>\n
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doesn’t work so well you have to trade<\/div>\n<\/div>\n<\/div>\n
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it differently and so the really good<\/div>\n<\/div>\n<\/div>\n
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traders not only study their best trades<\/div>\n<\/div>\n<\/div>\n
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and playbook them they study the new<\/div>\n<\/div>\n<\/div>\n
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best ways of trading in the changed<\/div>\n<\/div>\n<\/div>\n
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market environment so that they’re<\/div>\n<\/div>\n<\/div>\n
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\n
always able to adapt what that means in<\/div>\n<\/div>\n<\/div>\n
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practice is that the traders are even<\/div>\n<\/div>\n<\/div>\n
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the experienced traders are always<\/div>\n<\/div>\n<\/div>\n
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learning they’re always adapting and in<\/div>\n<\/div>\n<\/div>\n
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the team structure they’re learning with<\/div>\n<\/div>\n<\/div>\n
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each other and they’re learning from<\/div>\n<\/div>\n<\/div>\n
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each other so remember how we talked<\/div>\n<\/div>\n<\/div>\n
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about shark hitting that career<\/div>\n<\/div>\n<\/div>\n
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\n
milestone of earning a black shirt well<\/div>\n<\/div>\n<\/div>\n
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\n
that at the time seems like a lot of PL<\/div>\n<\/div>\n<\/div>\n
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\n
for him in March we’ll we’ll slip that<\/div>\n<\/div>\n<\/div>\n
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\n
in a little bit but at March you know he<\/div>\n<\/div>\n<\/div>\n
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\n
made over three and a half million<\/div>\n<\/div>\n<\/div>\n
\n
\n
dollars and one month and and earning<\/div>\n<\/div>\n<\/div>\n
\n
\n
that black shirt for the entire year and<\/div>\n<\/div>\n<\/div>\n
\n
\n
it really wasn’t as big of an<\/div>\n<\/div>\n<\/div>\n
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\n
accomplishment as we thought at the time<\/div>\n<\/div>\n<\/div>\n
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\n
but the reason for that and the reason<\/div>\n<\/div>\n<\/div>\n
\n
\n
for that is a couple of years before<\/div>\n<\/div>\n<\/div>\n
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\n
that we had a recognition that we just<\/div>\n<\/div>\n<\/div>\n
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weren’t that good at marketplace we were<\/div>\n<\/div>\n<\/div>\n
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\n
really good at trading individual names<\/div>\n<\/div>\n<\/div>\n
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\n
we just weren’t good at trading the<\/div>\n<\/div>\n<\/div>\n
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\n
overall market we weren’t good at<\/div>\n<\/div>\n<\/div>\n
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\n
trading spy we weren’t good at trading<\/div>\n<\/div>\n<\/div>\n
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\n
volatility products and we needed to get<\/div>\n<\/div>\n<\/div>\n
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\n
better we were leaving too much money on<\/div>\n<\/div>\n<\/div>\n
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\n
the table as a prop firm and ends needed<\/div>\n<\/div>\n<\/div>\n
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\n
to improve we need to take ownership of<\/div>\n<\/div>\n<\/div>\n
\n
\n
that and so I asked dr. Stein Barger if<\/div>\n<\/div>\n<\/div>\n
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\n
he would work with some of our guys on<\/div>\n<\/div>\n<\/div>\n
\n
\n
marketplace his background as a futures<\/div>\n<\/div>\n<\/div>\n
\n
\n
trader and he came in and emphasized<\/div>\n<\/div>\n<\/div>\n
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some indicators that the guys could look<\/div>\n<\/div>\n<\/div>\n
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at that can be particularly helpful and<\/div>\n<\/div>\n<\/div>\n
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\n
you know one of the one of the ideas<\/div>\n<\/div>\n<\/div>\n
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\n
that came out of this bootcamp on on<\/div>\n<\/div>\n<\/div>\n
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\n
trading marketplace was you have to<\/div>\n<\/div>\n<\/div>\n
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\n
trade differently when the VIX is below<\/div>\n<\/div>\n<\/div>\n
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fifteen then when it’s above fifteen<\/div>\n<\/div>\n<\/div>\n
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when the VIX is twelve<\/div>\n<\/div>\n<\/div>\n
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stick with your stocks in play and the<\/div>\n<\/div>\n<\/div>\n
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\n
way you’ve been going up about your<\/div>\n<\/div>\n<\/div>\n
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\n
business the VIX is fifteen think about<\/div>\n<\/div>\n<\/div>\n
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potentially trading spike use volatility<\/div>\n<\/div>\n<\/div>\n
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products when this when this when the<\/div>\n<\/div>\n<\/div>\n
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\n
VIX is above twenty hey now you should<\/div>\n<\/div>\n<\/div>\n
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\n
move to trading spies cues the<\/div>\n<\/div>\n<\/div>\n
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\n
marketplace stocks maybe the high beta<\/div>\n<\/div>\n<\/div>\n
\n
\n
stocks that follow along with the<\/div>\n<\/div>\n<\/div>\n
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\n
marketplace don’t do what you’re doing<\/div>\n<\/div>\n<\/div>\n
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\n
when the VIX was 12 that makes no sense<\/div>\n<\/div>\n<\/div>\n
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but because we had been working<\/div>\n<\/div>\n<\/div>\n
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\n
preceding this period of time in March<\/div>\n<\/div>\n<\/div>\n
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on our marketplace stocks and because we<\/div>\n<\/div>\n<\/div>\n
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\n
had built<\/div>\n<\/div>\n<\/div>\n
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the playbooks to be able to trade the<\/div>\n<\/div>\n<\/div>\n
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\n
spies and the volatility products when<\/div>\n<\/div>\n<\/div>\n
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\n
VIX was 60 and above guys who two years<\/div>\n<\/div>\n<\/div>\n
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\n
ago weren’t really that good at it<\/div>\n<\/div>\n<\/div>\n
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really capitalized and they had months<\/div>\n<\/div>\n<\/div>\n
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\n
many multiples of their previous high<\/div>\n<\/div>\n<\/div>\n
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\n
months it’s that that that desire you<\/div>\n<\/div>\n<\/div>\n
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\n
know it really is that desire to look in<\/div>\n<\/div>\n<\/div>\n
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the mirror and just sort of say I’m just<\/div>\n<\/div>\n<\/div>\n
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\n
not good enough at certain things I<\/div>\n<\/div>\n<\/div>\n
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\n
really do need to get better we’re not<\/div>\n<\/div>\n<\/div>\n
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\n
good enough and I remember saying this<\/div>\n<\/div>\n<\/div>\n
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\n
is a doctor seen burger we’re just not<\/div>\n<\/div>\n<\/div>\n
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\n
good enough at marketplace right now and<\/div>\n<\/div>\n<\/div>\n
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\n
this is going to this is going to be an<\/div>\n<\/div>\n<\/div>\n
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\n
issue for us going forward we need to<\/div>\n<\/div>\n<\/div>\n
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\n
solve this and and this is from we were<\/div>\n<\/div>\n<\/div>\n
\n
\n
doing fine at the time and those traders<\/div>\n<\/div>\n<\/div>\n
\n
\n
were doing well at the time but they<\/div>\n<\/div>\n<\/div>\n
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\n
wanted to get better and and they did<\/div>\n<\/div>\n<\/div>\n
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\n
and Mike if I could just jump in you<\/div>\n<\/div>\n<\/div>\n
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\n
know one issue that sometimes comes up<\/div>\n<\/div>\n<\/div>\n
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\n
with traders well we get a more volatile<\/div>\n<\/div>\n<\/div>\n
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\n
environment there’s more opportunity<\/div>\n<\/div>\n<\/div>\n
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\n
size up but they’re sizing up in a more<\/div>\n<\/div>\n<\/div>\n
\n
\n
volatile environment so they end up<\/div>\n<\/div>\n<\/div>\n
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\n
taking way more risk than they realize<\/div>\n<\/div>\n<\/div>\n
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\n
and that can blow them out so you want<\/div>\n<\/div>\n<\/div>\n
\n
\n
to be careful about sizing of positions<\/div>\n<\/div>\n<\/div>\n
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\n
and risk taking when a market becomes<\/div>\n<\/div>\n<\/div>\n
\n
\n
increasingly volatile it’s very easy to<\/div>\n<\/div>\n<\/div>\n
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\n
lose more than you anticipated that<\/div>\n<\/div>\n<\/div>\n
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\n
affects us emotionally and affects our<\/div>\n<\/div>\n<\/div>\n
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\n
subsequent rainy day traders ask what<\/div>\n<\/div>\n<\/div>\n
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\n
advice can you give to proprietary<\/div>\n<\/div>\n<\/div>\n
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\n
traders who are making money but are<\/div>\n<\/div>\n<\/div>\n
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\n
still look for higher greater and better<\/div>\n<\/div>\n<\/div>\n
\n
\n
profits so this is swang this is swank<\/div>\n<\/div>\n<\/div>\n
\n
\n
getting his Blackshirt<\/div>\n<\/div>\n<\/div>\n
\n
\n
for the first time and he – in March<\/div>\n<\/div>\n<\/div>\n
\n
\n
made those numbers look quite small but<\/div>\n<\/div>\n<\/div>\n
\n
\n
one of the things that swang has done<\/div>\n<\/div>\n<\/div>\n
\n
\n
over the course of the last two three<\/div>\n<\/div>\n<\/div>\n
\n
\n
years is learn to express his best<\/div>\n<\/div>\n<\/div>\n
\n
\n
trades with options as well<\/div>\n<\/div>\n<\/div>\n
\n
\n
so he is a terrific equities trader and<\/div>\n<\/div>\n<\/div>\n
\n
\n
he has grown the way he can express his<\/div>\n<\/div>\n<\/div>\n
\n
\n
trades with options as well<\/div>\n<\/div>\n<\/div>\n
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\n
we noticed after one particular year<\/div>\n<\/div>\n<\/div>\n
\n
\n
that he had made some decent money<\/div>\n<\/div>\n<\/div>\n
\n
\n
trading options our floor manager<\/div>\n<\/div>\n<\/div>\n
\n
\n
challenged him let’s do more of that to<\/div>\n<\/div>\n<\/div>\n
\n
\n
trade with a little bit bigger size to<\/div>\n<\/div>\n<\/div>\n
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\n
more of it it was working keep doing it<\/div>\n<\/div>\n<\/div>\n
\n
\n
and so what we encourage our traders to<\/div>\n<\/div>\n<\/div>\n
\n
\n
do is to express their ideas in<\/div>\n<\/div>\n<\/div>\n
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\n
different ways to add different products<\/div>\n<\/div>\n<\/div>\n
\n
\n
interestingly enough Shuang had a pretty<\/div>\n<\/div>\n<\/div>\n
\n
\n
good month of March trading futures he<\/div>\n<\/div>\n<\/div>\n
\n
\n
started trading for us the night<\/div>\n<\/div>\n<\/div>\n
\n
\n
sessions for you guys the early session<\/div>\n<\/div>\n<\/div>\n
\n
\n
but he started jumping in when the Asian<\/div>\n<\/div>\n<\/div>\n
\n
\n
markets started to open and trading us<\/div>\n<\/div>\n<\/div>\n
\n
\n
futures and having some success with<\/div>\n<\/div>\n<\/div>\n
\n
\n
that because volatility was so high and<\/div>\n<\/div>\n<\/div>\n
\n
\n
dr. Stein Barger wrote a interesting<\/div>\n<\/div>\n<\/div>\n
\n
\n
tweet a while back which I think speaks<\/div>\n<\/div>\n<\/div>\n
\n
\n
to this and and and we spoke to this a<\/div>\n<\/div>\n<\/div>\n
\n
\n
little bit before and so you know the<\/div>\n<\/div>\n<\/div>\n
\n
\n
question is how do you get better how do<\/div>\n<\/div>\n<\/div>\n
\n
\n
you make more money and the answer tends<\/div>\n<\/div>\n<\/div>\n
\n
\n
to be and I don’t want to put words in<\/div>\n<\/div>\n<\/div>\n
\n
\n
your mouth although you did tweet this<\/div>\n<\/div>\n<\/div>\n
\n
\n
so I don’t know if I’m doing that it<\/div>\n<\/div>\n<\/div>\n
\n
\n
sits on the public record the answer<\/div>\n<\/div>\n<\/div>\n
\n
\n
tends to be what dr. Steinberg is saying<\/div>\n<\/div>\n<\/div>\n
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\n
here what trading do you do that is<\/div>\n<\/div>\n<\/div>\n
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\n
truly gifted or do your true gifts lie<\/div>\n<\/div>\n<\/div>\n
\n
\n
outside of financial markets so much of<\/div>\n<\/div>\n<\/div>\n
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\n
success is figuring out what you’re<\/div>\n<\/div>\n<\/div>\n
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\n
meant to be doing<\/div>\n<\/div>\n<\/div>\n
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\n
and so dr. Stein burgers to humble to<\/div>\n<\/div>\n<\/div>\n
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\n
bring this up but swang is a model of<\/div>\n<\/div>\n<\/div>\n
\n
\n
consistency throughout the years is P&L<\/div>\n<\/div>\n<\/div>\n
\n
\n
has been very high and also had very<\/div>\n<\/div>\n<\/div>\n
\n
\n
little drawdown the very few losing days<\/div>\n<\/div>\n<\/div>\n
\n
\n
very few losing weeks but prior to his<\/div>\n<\/div>\n<\/div>\n
\n
\n
historic March he got off-track he<\/div>\n<\/div>\n<\/div>\n
\n
\n
started to see drawdown and he started<\/div>\n<\/div>\n<\/div>\n
\n
\n
to see drawdown because he started to<\/div>\n<\/div>\n<\/div>\n
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\n
get away from what he is truly gifted at<\/div>\n<\/div>\n<\/div>\n
\n
\n
he started to do more swing trading they<\/div>\n<\/div>\n<\/div>\n
\n
\n
got in the way of what dr. Steve Buerger<\/div>\n<\/div>\n<\/div>\n
\n
\n
says is his swank trading don’t let your<\/div>\n<\/div>\n<\/div>\n
\n
\n
swing trading get in the way of your<\/div>\n<\/div>\n<\/div>\n
\n
\n
Swank trading and we looked at his<\/div>\n<\/div>\n<\/div>\n
\n
\n
trading results from trader view and dr.<\/div>\n<\/div>\n<\/div>\n
\n
\n
Stein Berger saw what he was doing and<\/div>\n<\/div>\n<\/div>\n
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\n
said hey get back to what you’re doing<\/div>\n<\/div>\n<\/div>\n
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\n
well get get back to more of that active<\/div>\n<\/div>\n<\/div>\n
\n
\n
quick thinking short-term trading that<\/div>\n<\/div>\n<\/div>\n
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\n
has built your career and what you’re<\/div>\n<\/div>\n<\/div>\n
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\n
special at and move away from more of<\/div>\n<\/div>\n<\/div>\n
\n
\n
the p.m. work that I’m seeing you do<\/div>\n<\/div>\n<\/div>\n
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\n
I wrote this weekend some of the best<\/div>\n<\/div>\n<\/div>\n
\n
\n
active traders are reaching new levels<\/div>\n<\/div>\n<\/div>\n
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\n
by taking less risk reducing stress<\/div>\n<\/div>\n<\/div>\n
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lowering drawdown better consistency<\/div>\n<\/div>\n<\/div>\n
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collaborating and not holding through<\/div>\n<\/div>\n<\/div>\n
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pain<\/div>\n<\/div>\n<\/div>\n
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\n
fighting price action increasing their<\/div>\n<\/div>\n<\/div>\n
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\n
holding time or predicting now look I<\/div>\n<\/div>\n<\/div>\n
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\n
want to say that there’s lots of<\/div>\n<\/div>\n<\/div>\n
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\n
different ways to trade I am talking<\/div>\n<\/div>\n<\/div>\n
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\n
about active traders and these are the<\/div>\n<\/div>\n<\/div>\n
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\n
active traders that I’m coaching and<\/div>\n<\/div>\n<\/div>\n
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\n
mentoring and are working at our firm so<\/div>\n<\/div>\n<\/div>\n
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\n
I’m not suggesting that this encompasses<\/div>\n<\/div>\n<\/div>\n
\n
\n
all traders but there’s a commonality<\/div>\n<\/div>\n<\/div>\n
\n
\n
as to how the best active traders are<\/div>\n<\/div>\n<\/div>\n
\n
\n
reaching new levels there’s a a there’s<\/div>\n<\/div>\n<\/div>\n
\n
\n
a through path through their best<\/div>\n<\/div>\n<\/div>\n
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\n
trading it’s not what you hear people<\/div>\n<\/div>\n<\/div>\n
\n
\n
talk about on cable TV it’s not what you<\/div>\n<\/div>\n<\/div>\n
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\n
hear out there on cable TV or the<\/div>\n<\/div>\n<\/div>\n
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\n
mythology out there about what great<\/div>\n<\/div>\n<\/div>\n
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\n
trading is all about is you know I’ve<\/div>\n<\/div>\n<\/div>\n
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got to have really I got to have a<\/div>\n<\/div>\n<\/div>\n
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\n
really strong stomach I’ve got to really<\/div>\n<\/div>\n<\/div>\n
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\n
be able to take a lot of pain that’s how<\/div>\n<\/div>\n<\/div>\n
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\n
you become a really good trader I got a<\/div>\n<\/div>\n<\/div>\n
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\n
man up I’m not seeing that with the best<\/div>\n<\/div>\n<\/div>\n
\n
\n
traders you know there’s this thought<\/div>\n<\/div>\n<\/div>\n
\n
\n
process that they got to be the ones<\/div>\n<\/div>\n<\/div>\n
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\n
that predict the markets gonna go down<\/div>\n<\/div>\n<\/div>\n
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\n
today and really catch that right I’m<\/div>\n<\/div>\n<\/div>\n
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\n
not seeing that with the best active<\/div>\n<\/div>\n<\/div>\n
\n
\n
traders and this is mythologized and you<\/div>\n<\/div>\n<\/div>\n
\n
\n
know movies like the big short where you<\/div>\n<\/div>\n<\/div>\n
\n
\n
know we we we marvel at the people that<\/div>\n<\/div>\n<\/div>\n
\n
\n
can just call the turn I’m not seeing<\/div>\n<\/div>\n<\/div>\n
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\n
that with the best traders I’m seeing<\/div>\n<\/div>\n<\/div>\n
\n
\n
the exact opposite with these<\/div>\n<\/div>\n<\/div>\n
\n
\n
proprietary traders reaching new levels<\/div>\n<\/div>\n<\/div>\n
\n
\n
and and they’re purposely structuring<\/div>\n<\/div>\n<\/div>\n
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\n
their days and their trading to take on<\/div>\n<\/div>\n<\/div>\n
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\n
less risk to take on less stress to draw<\/div>\n<\/div>\n<\/div>\n
\n
\n
down less to be more consistent and<\/div>\n<\/div>\n<\/div>\n
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\n
they’re making more in Mike if I could<\/div>\n<\/div>\n<\/div>\n
\n
\n
jump in you know psychologically what<\/div>\n<\/div>\n<\/div>\n
\n
\n
those best traders are doing is they’re<\/div>\n<\/div>\n<\/div>\n
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\n
quick to accept when an idea is not work<\/div>\n<\/div>\n<\/div>\n
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\n
out or what a train is not working out<\/div>\n<\/div>\n<\/div>\n
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\n
they don’t view it as a defeat they<\/div>\n<\/div>\n<\/div>\n
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\n
don’t view it as a failure<\/div>\n<\/div>\n<\/div>\n
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\n
they are quick to accept it’s not<\/div>\n<\/div>\n<\/div>\n
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\n
working out and move on and learn from<\/div>\n<\/div>\n<\/div>\n
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\n
it and that allows them to be flexible<\/div>\n<\/div>\n<\/div>\n
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\n
it allows them to go after the next<\/div>\n<\/div>\n<\/div>\n
\n
\n
opportunity great traders are great at<\/div>\n<\/div>\n<\/div>\n
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\n
taking losses<\/div>\n<\/div>\n<\/div>\n
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\n
they’re also quick at taking losses<\/div>\n<\/div>\n<\/div>\n
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\n
titters ask how do you know when it’s<\/div>\n<\/div>\n<\/div>\n
\n
\n
time to give up as a trader or on a<\/div>\n<\/div>\n<\/div>\n
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\n
trader so I received this email from a<\/div>\n<\/div>\n<\/div>\n
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\n
trader who was 10 months into his<\/div>\n<\/div>\n<\/div>\n
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\n
trading career and ensure he was<\/div>\n<\/div>\n<\/div>\n
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\n
struggling he was at the bottom of his<\/div>\n<\/div>\n<\/div>\n
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\n
trading class and he asked me the<\/div>\n<\/div>\n<\/div>\n
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question at what point should have<\/div>\n<\/div>\n<\/div>\n
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\n
trader give up he was at a tier 1 prop<\/div>\n<\/div>\n<\/div>\n
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\n
firm had a great mentor really bright<\/div>\n<\/div>\n<\/div>\n
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person loved trading called them up how<\/div>\n<\/div>\n<\/div>\n
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\n
to talk with them and he really still<\/div>\n<\/div>\n<\/div>\n
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\n
loved trading he had a great mentor<\/div>\n<\/div>\n<\/div>\n
\n
\n
mentor was one of the great day traders<\/div>\n<\/div>\n<\/div>\n
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of all time<\/div>\n<\/div>\n<\/div>\n
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he had a firm where they had tremendous<\/div>\n<\/div>\n<\/div>\n
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resources<\/div>\n<\/div>\n<\/div>\n
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he had a firm where they were still<\/div>\n<\/div>\n<\/div>\n
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backing him and believed in him and he<\/div>\n<\/div>\n<\/div>\n
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had the cognitive skills to succeed as a<\/div>\n<\/div>\n<\/div>\n
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\n
trader based on on my experience and so<\/div>\n<\/div>\n<\/div>\n
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\n
I said hey let’s give this a little bit<\/div>\n<\/div>\n<\/div>\n
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\n
more time why don’t we re up let’s give<\/div>\n<\/div>\n<\/div>\n
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\n
this a year and a half let’s read up and<\/div>\n<\/div>\n<\/div>\n
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\n
see how you’re at this trader was really<\/div>\n<\/div>\n<\/div>\n
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\n
thinking about moving on it was you can<\/div>\n<\/div>\n<\/div>\n
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\n
see from his his email he was in pain as<\/div>\n<\/div>\n<\/div>\n
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\n
to him not succeeding at this point he<\/div>\n<\/div>\n<\/div>\n
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\n
wasn’t he was in pain it was it was<\/div>\n<\/div>\n<\/div>\n
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\n
crushing him first time in his life he<\/div>\n<\/div>\n<\/div>\n
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\n
had really experienced such a consistent<\/div>\n<\/div>\n<\/div>\n
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\n
period of underperformance that’s<\/div>\n<\/div>\n<\/div>\n
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\n
something that was important to him and<\/div>\n<\/div>\n<\/div>\n
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\n
a I kept at it and you know I think what<\/div>\n<\/div>\n<\/div>\n
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\n
I’ll tell you about this trader might<\/div>\n<\/div>\n<\/div>\n
\n
\n
surprise some of you look at that email<\/div>\n<\/div>\n<\/div>\n
\n
\n
that’s how we felt 10 months into his<\/div>\n<\/div>\n<\/div>\n
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\n
trading career should I give up<\/div>\n<\/div>\n<\/div>\n
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\n
that traitor today is really one of the<\/div>\n<\/div>\n<\/div>\n
\n
\n
best active proprietary traders in the<\/div>\n<\/div>\n<\/div>\n
\n
\n
u.s. today<\/div>\n<\/div>\n<\/div>\n
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\n
hands now north of five million dollars<\/div>\n<\/div>\n<\/div>\n
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\n
in profits is going to make eight<\/div>\n<\/div>\n<\/div>\n
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\n
figures one one day it’s just a matter<\/div>\n<\/div>\n<\/div>\n
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\n
of time one of the truly great success<\/div>\n<\/div>\n<\/div>\n
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\n
stories<\/div>\n<\/div>\n<\/div>\n
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\n
ten months into his career seriously<\/div>\n<\/div>\n<\/div>\n
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\n
considered giving up and so you know for<\/div>\n<\/div>\n<\/div>\n
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\n
for a firm you know we think about is<\/div>\n<\/div>\n<\/div>\n
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\n
the trader improving we think about does<\/div>\n<\/div>\n<\/div>\n
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\n
the trader do the work that shows he’s<\/div>\n<\/div>\n<\/div>\n
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\n
passionate about trading we think about<\/div>\n<\/div>\n<\/div>\n
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\n
does the trader have some ability we<\/div>\n<\/div>\n<\/div>\n
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think about is the trader progressing<\/div>\n<\/div>\n<\/div>\n
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\n
are we seeing that in the numbers we<\/div>\n<\/div>\n<\/div>\n
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\n
think about how is the trader doing<\/div>\n<\/div>\n<\/div>\n
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\n
relative to other people in this class<\/div>\n<\/div>\n<\/div>\n
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because there are markets that are<\/div>\n<\/div>\n<\/div>\n
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\n
better than others and if you’re falling<\/div>\n<\/div>\n<\/div>\n
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\n
behind in a market like this that does<\/div>\n<\/div>\n<\/div>\n
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\n
that does say something I think the<\/div>\n<\/div>\n<\/div>\n
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biggest gift that my firm gives to<\/div>\n<\/div>\n<\/div>\n
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traders that very few people talk about<\/div>\n<\/div>\n<\/div>\n
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is time we give you time pay your bills<\/div>\n<\/div>\n<\/div>\n
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you don’t have to worry about the rents<\/div>\n<\/div>\n<\/div>\n
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have to worry about you know eatin and<\/div>\n<\/div>\n<\/div>\n
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hitting the gym we take care of that<\/div>\n<\/div>\n<\/div>\n
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it’s time we give you time to grow you<\/div>\n<\/div>\n<\/div>\n
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need time to grow even at a firm like<\/div>\n<\/div>\n<\/div>\n
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ours where you have all the resources<\/div>\n<\/div>\n<\/div>\n
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that you need in the world to succeed<\/div>\n<\/div>\n<\/div>\n
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all the capital all the coaching get to<\/div>\n<\/div>\n<\/div>\n
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work with the best trading coach in the<\/div>\n<\/div>\n<\/div>\n
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world like dr. Steen Barger all the<\/div>\n<\/div>\n<\/div>\n
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other great traders around you who are<\/div>\n<\/div>\n<\/div>\n
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succeeding who strategies you can see<\/div>\n<\/div>\n<\/div>\n
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all the mentoring and coaching meetings<\/div>\n<\/div>\n<\/div>\n
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we give every day<\/div>\n<\/div>\n<\/div>\n
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the a.m. meetings from Spencer the<\/div>\n<\/div>\n<\/div>\n
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training people go through the<\/div>\n<\/div>\n<\/div>\n
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technology that people get their hands<\/div>\n<\/div>\n<\/div>\n
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on it’s time so but if you’re not<\/div>\n<\/div>\n<\/div>\n
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improving and it’s something you’re you<\/div>\n<\/div>\n<\/div>\n
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don’t enjoy you do have a real decision<\/div>\n<\/div>\n<\/div>\n
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and I would say that the niche you trade<\/div>\n<\/div>\n<\/div>\n
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is important get this note from a former<\/div>\n<\/div>\n<\/div>\n
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SMB intern recently which I think<\/div>\n<\/div>\n<\/div>\n
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teaches a really important lesson<\/div>\n<\/div>\n<\/div>\n
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and he wrote hope your family’s doing<\/div>\n<\/div>\n<\/div>\n
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well some backstory and myself since we<\/div>\n<\/div>\n<\/div>\n
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last spoke<\/div>\n<\/div>\n<\/div>\n
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after my summer with SMB I realized I<\/div>\n<\/div>\n<\/div>\n
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didn’t fit in with day trading<\/div>\n<\/div>\n<\/div>\n
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personality-wise trading stake size at<\/div>\n<\/div>\n<\/div>\n
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the time etc absolutely loved that<\/div>\n<\/div>\n<\/div>\n
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summer in New York and continued to<\/div>\n<\/div>\n<\/div>\n
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cherish it being in an environment where<\/div>\n<\/div>\n<\/div>\n
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people constantly wanted to get better<\/div>\n<\/div>\n<\/div>\n
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and getting to interact with people<\/div>\n<\/div>\n<\/div>\n
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awesome at their sport getting to go to<\/div>\n<\/div>\n<\/div>\n
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your Saturday morning breakfast<\/div>\n<\/div>\n<\/div>\n
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invitations spending the weekends in<\/div>\n<\/div>\n<\/div>\n
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Central Park<\/div>\n<\/div>\n<\/div>\n
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writing in my journal on what happened<\/div>\n<\/div>\n<\/div>\n
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that week I feel like it puts the spark<\/div>\n<\/div>\n<\/div>\n
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back in my eyes when I think back to it<\/div>\n<\/div>\n<\/div>\n
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it was a tough blow at the end of the<\/div>\n<\/div>\n<\/div>\n
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summer though when I realized I was not<\/div>\n<\/div>\n<\/div>\n
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a total fit for trading at the time<\/div>\n<\/div>\n<\/div>\n
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after grad graduation I spent some time<\/div>\n<\/div>\n<\/div>\n
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with a firm redacted in the prime<\/div>\n<\/div>\n<\/div>\n
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brokerage Group in Florida and<\/div>\n<\/div>\n<\/div>\n
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eventually moved to perm redacted to<\/div>\n<\/div>\n<\/div>\n
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work on the research publishing side at<\/div>\n<\/div>\n<\/div>\n
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her and redacted not a total equity<\/div>\n<\/div>\n<\/div>\n
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analyst monkey that you see on CNBC but<\/div>\n<\/div>\n<\/div>\n
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sometimes feels close to it I’m now in<\/div>\n<\/div>\n<\/div>\n
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London doing the same thing I got I’ve<\/div>\n<\/div>\n<\/div>\n
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done a ton of traveling prior to the<\/div>\n<\/div>\n<\/div>\n
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shutdown and I’m moving up the ranks<\/div>\n<\/div>\n<\/div>\n
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making decent money but I missed that<\/div>\n<\/div>\n<\/div>\n
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environment of where people want to be<\/div>\n<\/div>\n<\/div>\n
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peak performers in my job I imagine most<\/div>\n<\/div>\n<\/div>\n
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of corporate jobs you get paid to grind<\/div>\n<\/div>\n<\/div>\n
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it out and not screw up too much there’s<\/div>\n<\/div>\n<\/div>\n
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not much upside in being a peak<\/div>\n<\/div>\n<\/div>\n
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performer unless you’re some kind of<\/div>\n<\/div>\n<\/div>\n
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Rainmaker that doesn’t stop me from<\/div>\n<\/div>\n<\/div>\n
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finding other areas investing and<\/div>\n<\/div>\n<\/div>\n
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trading I focused on building my<\/div>\n<\/div>\n<\/div>\n
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playbook now for these opportunities and<\/div>\n<\/div>\n<\/div>\n
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I find the longer term trading focus<\/div>\n<\/div>\n<\/div>\n
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while having a full-time job gives me<\/div>\n<\/div>\n<\/div>\n
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psychological comfort I have a job with<\/div>\n<\/div>\n<\/div>\n
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monthly income so I don’t have to trade<\/div>\n<\/div>\n<\/div>\n
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at the set up isn’t there I wanted to<\/div>\n<\/div>\n<\/div>\n
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pass along this message one to reconnect<\/div>\n<\/div>\n<\/div>\n
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and say thank you again but that<\/div>\n<\/div>\n<\/div>\n
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learning experience that summer and the<\/div>\n<\/div>\n<\/div>\n
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great content your team continues to<\/div>\n<\/div>\n<\/div>\n
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produce – maybe my message can provide<\/div>\n<\/div>\n<\/div>\n
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some hope and belief for the young<\/div>\n<\/div>\n<\/div>\n
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traders that reach out but maybe aren’t<\/div>\n<\/div>\n<\/div>\n
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cut out for day trading or find that<\/div>\n<\/div>\n<\/div>\n
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doesn’t fit who they are I feel like we<\/div>\n<\/div>\n<\/div>\n
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each have our own paths to take and<\/div>\n<\/div>\n<\/div>\n
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learn from<\/div>\n<\/div>\n<\/div>\n
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so it just may be that the niche that<\/div>\n<\/div>\n<\/div>\n
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you starred in is not the right niche<\/div>\n<\/div>\n<\/div>\n
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and it’s okay to say that it so it’s<\/div>\n<\/div>\n<\/div>\n
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okay to say that to yourself it may be<\/div>\n<\/div>\n<\/div>\n
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it may not be the trading is the right<\/div>\n<\/div>\n<\/div>\n
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thing for you but you can see there are<\/div>\n<\/div>\n<\/div>\n
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plenty of people who I’ve worked with<\/div>\n<\/div>\n<\/div>\n
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who have taken their operative taken<\/div>\n<\/div>\n<\/div>\n
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their experience as traders and parlayed<\/div>\n<\/div>\n<\/div>\n
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that into really incredible other<\/div>\n<\/div>\n<\/div>\n
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experiences in finance trading is the<\/div>\n<\/div>\n<\/div>\n
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top of the food chain it’s the hardest<\/div>\n<\/div>\n<\/div>\n
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thing to do and all of Finance it’s the<\/div>\n<\/div>\n<\/div>\n
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hardest thing to do in all finance it’s<\/div>\n<\/div>\n<\/div>\n
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the very top of the chain there isn’t<\/div>\n<\/div>\n<\/div>\n
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anybody above traders and you know they<\/div>\n<\/div>\n<\/div>\n
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say in baseball the hardest thing to do<\/div>\n<\/div>\n<\/div>\n
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is hit a baseball the hardest thing to<\/div>\n<\/div>\n<\/div>\n
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do in finance is to be a discretionary<\/div>\n<\/div>\n<\/div>\n
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rater or to be a trader P&L trader of<\/div>\n<\/div>\n<\/div>\n
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any kind<\/div>\n<\/div>\n<\/div>\n
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it’s the hardest thing I’ve ever had to<\/div>\n<\/div>\n<\/div>\n
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do in my life and so it’s okay sometimes<\/div>\n<\/div>\n<\/div>\n
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to say hey maybe not this type of<\/div>\n<\/div>\n<\/div>\n
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trading or or maybe I’m gonna do a<\/div>\n<\/div>\n<\/div>\n
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different type of work in finance our<\/div>\n<\/div>\n<\/div>\n
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traders asked how do you know how much<\/div>\n<\/div>\n<\/div>\n
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you should allocate funds to a certain<\/div>\n<\/div>\n<\/div>\n
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trader versus another trader current<\/div>\n<\/div>\n<\/div>\n
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setup in our firm here is that we range<\/div>\n<\/div>\n<\/div>\n
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allocation from fifty thousand to a<\/div>\n<\/div>\n<\/div>\n
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million depending on the trader but that<\/div>\n<\/div>\n<\/div>\n
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criteria for deciding who gets more<\/div>\n<\/div>\n<\/div>\n
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funds is often questioned so I’m gonna<\/div>\n<\/div>\n<\/div>\n
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let you guys handle that amongst<\/div>\n<\/div>\n<\/div>\n
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yourselves I’m not gonna pretend I wish<\/div>\n<\/div>\n<\/div>\n
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I could but I can tell you we did have<\/div>\n<\/div>\n<\/div>\n
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an issue like this at our firm and so we<\/div>\n<\/div>\n<\/div>\n
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have a team that wanted more capital for<\/div>\n<\/div>\n<\/div>\n
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a particular strategy and the strategy<\/div>\n<\/div>\n<\/div>\n
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was being traded by other traders at the<\/div>\n<\/div>\n<\/div>\n
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firm and we were starting to run out of<\/div>\n<\/div>\n<\/div>\n
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capital for this particular strategy and<\/div>\n<\/div>\n<\/div>\n
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not only were we starting to run out of<\/div>\n<\/div>\n<\/div>\n
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capital but we didn’t really even want<\/div>\n<\/div>\n<\/div>\n
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to put more capital into one particular<\/div>\n<\/div>\n<\/div>\n
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strategy is that creates too much risk<\/div>\n<\/div>\n<\/div>\n
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for the firm for everybody to be piled<\/div>\n<\/div>\n<\/div>\n
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into the same idea and so but it was a<\/div>\n<\/div>\n<\/div>\n
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strategy where it was really working<\/div>\n<\/div>\n<\/div>\n
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everybody at the firm saw it and<\/div>\n<\/div>\n<\/div>\n
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everybody wanted to do it<\/div>\n<\/div>\n<\/div>\n
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and we had this question of how do we<\/div>\n<\/div>\n<\/div>\n
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decide who gets what<\/div>\n<\/div>\n<\/div>\n
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there’s one team came forward and said<\/div>\n<\/div>\n<\/div>\n
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hey I want a lot more I want a lot more<\/div>\n<\/div>\n<\/div>\n
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capital and they said here’s why they<\/div>\n<\/div>\n<\/div>\n
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were here’s why we deserve it they had<\/div>\n<\/div>\n<\/div>\n
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developed a unique data set that gave<\/div>\n<\/div>\n<\/div>\n
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signals that allowed them to perform<\/div>\n<\/div>\n<\/div>\n
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better than anybody else at the firm of<\/div>\n<\/div>\n<\/div>\n
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the strategy they had collaborated to<\/div>\n<\/div>\n<\/div>\n
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[Music]<\/div>\n<\/div>\n<\/div>\n
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improve the strategy so that its<\/div>\n<\/div>\n<\/div>\n
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profitability was better per dollar than<\/div>\n<\/div>\n<\/div>\n
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anybody else’s at the firm and they were<\/div>\n<\/div>\n<\/div>\n
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actively doing the work to show that<\/div>\n<\/div>\n<\/div>\n
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they were they were doing better and<\/div>\n<\/div>\n<\/div>\n
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they had the stats to back it up and so<\/div>\n<\/div>\n<\/div>\n
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we had to think about it and we said<\/div>\n<\/div>\n<\/div>\n
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yeah I mean they they deserve to have<\/div>\n<\/div>\n<\/div>\n
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capacity capital for that particular<\/div>\n<\/div>\n<\/div>\n
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strategy and we went and and decrease<\/div>\n<\/div>\n<\/div>\n
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some of the capital for some of the<\/div>\n<\/div>\n<\/div>\n
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other guys but I think overall one of<\/div>\n<\/div>\n<\/div>\n
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the things that we do on our firm is we<\/div>\n<\/div>\n<\/div>\n
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tag and measure all of our traits we<\/div>\n<\/div>\n<\/div>\n
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keep statistics on all of our setups<\/div>\n<\/div>\n<\/div>\n
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they have names they have stats behind<\/div>\n<\/div>\n<\/div>\n
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them and if traders show that certain<\/div>\n<\/div>\n<\/div>\n
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strategies are doing well then they’ve<\/div>\n<\/div>\n<\/div>\n
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earned the right to be given more<\/div>\n<\/div>\n<\/div>\n
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capital but remember they’ve earned that<\/div>\n<\/div>\n<\/div>\n
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right they’ve shown it in real-time they<\/div>\n<\/div>\n<\/div>\n
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haven’t just come in and said I really<\/div>\n<\/div>\n<\/div>\n
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think this would be a great strategy I<\/div>\n<\/div>\n<\/div>\n
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really think I would be great at running<\/div>\n<\/div>\n<\/div>\n
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it I really think I deserve more capital<\/div>\n<\/div>\n<\/div>\n
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I really think if you gave me more<\/div>\n<\/div>\n<\/div>\n
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capital I would do well they baron it<\/div>\n<\/div>\n<\/div>\n
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they show it Mike I jump in yes okay so<\/div>\n<\/div>\n<\/div>\n
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a hedge funds where I’ve worked I’ve<\/div>\n<\/div>\n<\/div>\n
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been part of the capital allocation<\/div>\n<\/div>\n<\/div>\n
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process oh the way it works is first you<\/div>\n<\/div>\n<\/div>\n
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have to show positive results then you<\/div>\n<\/div>\n<\/div>\n
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have to show that you have positive<\/div>\n<\/div>\n<\/div>\n
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risk-adjusted results which means that<\/div>\n<\/div>\n<\/div>\n
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you make a good amount of money relative<\/div>\n<\/div>\n<\/div>\n
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to the amount<\/div>\n<\/div>\n<\/div>\n
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that can be captured by a Sharpe ratio<\/div>\n<\/div>\n<\/div>\n
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or other statistics so it’s not just how<\/div>\n<\/div>\n<\/div>\n
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much total how many total dollars you<\/div>\n<\/div>\n<\/div>\n
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make it’s how much do you make per unit<\/div>\n<\/div>\n<\/div>\n
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of risk that you take they want to see<\/div>\n<\/div>\n<\/div>\n
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good risk adjusted returns then once you<\/div>\n<\/div>\n<\/div>\n
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show good returns a good risk adjusted<\/div>\n<\/div>\n<\/div>\n
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returns they want to see unique returns<\/div>\n<\/div>\n<\/div>\n
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are you doing something differently from<\/div>\n<\/div>\n<\/div>\n
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other traders if you have a big trader<\/div>\n<\/div>\n<\/div>\n
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who is successful and then a junior<\/div>\n<\/div>\n<\/div>\n
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trader who wants more capital but who is<\/div>\n<\/div>\n<\/div>\n
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\n
very very highly correlated with the pit<\/div>\n<\/div>\n<\/div>\n
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Raider why should you give money to the<\/div>\n<\/div>\n<\/div>\n
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junior trader just give the big trader<\/div>\n<\/div>\n<\/div>\n
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more money so it’s portfolio<\/div>\n<\/div>\n<\/div>\n
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construction problem the firm has a<\/div>\n<\/div>\n<\/div>\n
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portfolio the portfolio consists of the<\/div>\n<\/div>\n<\/div>\n
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returns of the different traders any<\/div>\n<\/div>\n<\/div>\n
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portfolio needs to be diversified in<\/div>\n<\/div>\n<\/div>\n
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order to give consistent returns so you<\/div>\n<\/div>\n<\/div>\n
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\n
need traders doing different things not<\/div>\n<\/div>\n<\/div>\n
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\n
simply copying each other hi Brett can I<\/div>\n<\/div>\n<\/div>\n
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\n
can I jump in oh yeah what other ratios<\/div>\n<\/div>\n<\/div>\n
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do you guys look up primarily when<\/div>\n<\/div>\n<\/div>\n
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you’re evaluating traders it varies for<\/div>\n<\/div>\n<\/div>\n
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\n
my firm but the it’s not so much ratios<\/div>\n<\/div>\n<\/div>\n
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what they look at our factor exposures<\/div>\n<\/div>\n<\/div>\n
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so for instance they will look at<\/div>\n<\/div>\n<\/div>\n
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different periods of time is the trader<\/div>\n<\/div>\n<\/div>\n
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correlated with overall markets is the<\/div>\n<\/div>\n<\/div>\n
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trader making money more on the upside<\/div>\n<\/div>\n<\/div>\n
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than the downside he<\/div>\n<\/div>\n<\/div>\n
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the trainer of making money<\/div>\n<\/div>\n<\/div>\n
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momentum fashion they’re looking at<\/div>\n<\/div>\n<\/div>\n
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different factors to see how this<\/div>\n<\/div>\n<\/div>\n
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trainer makes their money and they’re<\/div>\n<\/div>\n<\/div>\n
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looking for diversification of those<\/div>\n<\/div>\n<\/div>\n
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factor exposures that’s really one of<\/div>\n<\/div>\n<\/div>\n
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the most important things that they look<\/div>\n<\/div>\n<\/div>\n
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at<\/div>\n<\/div>\n<\/div>\n
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so are they making money immediately<\/div>\n<\/div>\n<\/div>\n
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look at correlations but they’ll also<\/div>\n<\/div>\n<\/div>\n
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\n
look at how the money was made are they<\/div>\n<\/div>\n<\/div>\n
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doing positive investing their money<\/div>\n<\/div>\n<\/div>\n
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\n
short term longer term in different<\/div>\n<\/div>\n<\/div>\n
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\n
markets etc etc etc thank you<\/div>\n<\/div>\n<\/div>\n
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\n
oh absolutely absolutely I did a webinar<\/div>\n<\/div>\n<\/div>\n
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\n
recently and someone talked about how<\/div>\n<\/div>\n<\/div>\n
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\n
they their style of training that they<\/div>\n<\/div>\n<\/div>\n
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were making money by sticking to their<\/div>\n<\/div>\n<\/div>\n
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style and their health was to be sharp<\/div>\n<\/div>\n<\/div>\n
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\n
as a market that’s not a style that’s<\/div>\n<\/div>\n<\/div>\n
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\n
called a bias yeah that’s not called<\/div>\n<\/div>\n<\/div>\n
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good trainee that’s called being an<\/div>\n<\/div>\n<\/div>\n
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\n
idiot I said be like a baseball player<\/div>\n<\/div>\n<\/div>\n
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\n
who said well I only hit fast balls<\/div>\n<\/div>\n<\/div>\n
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that’s my style<\/div>\n<\/div>\n<\/div>\n
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that makes balls going to get a lot of<\/div>\n<\/div>\n<\/div>\n
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\n
curve balls and off-speed stuff so we<\/div>\n<\/div>\n<\/div>\n
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\n
wanted to stick to us that style has to<\/div>\n<\/div>\n<\/div>\n
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\n
be adapted to various market conditions<\/div>\n<\/div>\n<\/div>\n
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\n
ones that are not trending bottle less<\/div>\n<\/div>\n<\/div>\n
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fall on so forth I will take one more<\/div>\n<\/div>\n<\/div>\n
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and I’m gonna ask dr. steamer to answer<\/div>\n<\/div>\n<\/div>\n
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this we’re running up against our market<\/div>\n<\/div>\n<\/div>\n
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preparation yeah you are I gotta god<\/div>\n<\/div>\n<\/div>\n
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what are the best techniques to handle<\/div>\n<\/div>\n<\/div>\n
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draw downs and losing money dr.<\/div>\n<\/div>\n<\/div>\n
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Steinberger best techniques to handle<\/div>\n<\/div>\n<\/div>\n
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draw down<\/div>\n<\/div>\n<\/div>\n
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draw down and lose body the right way in<\/div>\n<\/div>\n<\/div>\n
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other words we have lost let daily loss<\/div>\n<\/div>\n<\/div>\n
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limits the SMB traders have that we have<\/div>\n<\/div>\n<\/div>\n
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lost limits per trade those will be<\/div>\n<\/div>\n<\/div>\n
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stopped out levels and so we’re losing<\/div>\n<\/div>\n<\/div>\n
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money in a planned fashion now that<\/div>\n<\/div>\n<\/div>\n
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sounds a little bit funny that we<\/div>\n<\/div>\n<\/div>\n
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actually planned all this money but you<\/div>\n<\/div>\n<\/div>\n
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have to you have to anticipate that this<\/div>\n<\/div>\n<\/div>\n
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is a probabilistic game sometimes the<\/div>\n<\/div>\n<\/div>\n
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probabilities don’t work out sometimes<\/div>\n<\/div>\n<\/div>\n
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ideas will be wrong and trades will go<\/div>\n<\/div>\n<\/div>\n
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wrong and you want to lose the right<\/div>\n<\/div>\n<\/div>\n
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amount of money and so anticipating<\/div>\n<\/div>\n<\/div>\n
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losses and making sure that you can<\/div>\n<\/div>\n<\/div>\n
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always come back from those losses is<\/div>\n<\/div>\n<\/div>\n
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the right way to drawdown okay go ahead<\/div>\n<\/div>\n<\/div>\n
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and click our subscribe button so you<\/div>\n<\/div>\n<\/div>\n
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don’t miss any of the videos they were<\/div>\n<\/div>\n<\/div>\n
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producing for you in the trading<\/div>\n<\/div>\n<\/div>\n
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community and please take the time to<\/div>\n<\/div>\n<\/div>\n
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add your feedback in the comment section<\/div>\n<\/div>\n<\/div>\n
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for what videos you’d like for us to<\/div>\n<\/div>\n<\/div>\n
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produce next and what you found helpful<\/div>\n<\/div>\n<\/div>\n
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from this video from all of us at SMB<\/div>\n<\/div>\n<\/div>\n
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train and trade well<\/div>\n<\/div>\n<\/div>\n
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\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

\"\"<\/a><\/p>\n

* no relevant positions<\/p>\n","protected":false},"excerpt":{"rendered":"

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