From new trader to great


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From new trader to great

  1. 1. From New to Gr8 Trader! Mike Bellafiore Author, One Good Trade and The PlayBook Co-Founder of SMB Capital, SMBU, SMB Systems
  2. 2. SMB TRAINING is NOT a Broker Dealer. SMB Training engages in trader education and training. SMB TRAINING offers a number of products and services, both electronical (over the internet through and in person. SMB TRAINING also offers web-based, interactive training courses on demand. The seminars given by SMB TRAINING are for educational purposes only. This information neither is, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities. You shall be fully responsible for any investment decision you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs. This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by SMB TRAINING or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs. SMB Training and SMB Capital Management, LLC are separate but affiliated companies. No relevant positions Please note: Hypothetical computer simulated performance results are believed to be accurately presented. However, they are not guaranteed as to accuracy or completeness and are subject to change without any notice. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since, also, the trades have not actually been executed; the results may have been under or over compensated for the impact, if any, of certain market factors such as liquidity, slippage and commissions. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any portfolio will, or is likely to achieve profits or losses similar to those shown. All investments and trades carry risks.”
  3. 3. Goals • Share Best Practices from SMB Traders • Give you role models to emulate • Offer Best Practices for you to co-opt • Very important to study successful traders! • Answer your questions • Your 30 Day Trading Challenge
  4. 4. From New Trader to Gr8 • The Bionic Discretionary Trader • Cognitive Ability • Mindset • Passion • Concentrated Practice Process • Innovation after your build a Foundation • Great Coaching • Edge
  5. 5. Give Me a Break SMB! (The Importance of Cognitive Ability)
  6. 6. Cognitive Ability • Seth, Spencer and JK graduates of Wharton • “I cannot read the tape.” • SWang and a bank on the Street • Link between cognitive ability and trading success • Richard Peterson
  7. 7. Bionic Discretionary Trader
  8. 8. SMB Scanner
  9. 9. SMB Radar
  10. 10. SMB AM Meeting
  11. 11. SMB Real-time
  12. 12. SMBU Performance Center
  13. 13. Custom Filters of Best Setups • +/- 3% • Rvol >2 • Past 10:15AM • Above VWAP • ATR >.8 • ADV >1m
  14. 14. SMB Tools 7 Day Free Trial •
  15. 15. Mindset
  16. 16. Mindset • Judge your trading based on your PnL • Improve everyday • What can you learn from each trade? • Can you accept the mindset to learn from each trade?
  17. 17. Passion for Trading • The Talent Code by Dan Coyle • Domain Knowledge, Passion, Coaching, Concentrated Practice • The ability to sustain your energy- Dr. Steenbarger • TO from The PlayBook 24/7/365
  18. 18. Do What You Do!
  19. 19. Innovation • AFTER YOU HAVE BUILT A FOUNDATION!! • The Franchise and G from One Good Trade
  20. 20. Great Coaching • The PlayBook- GMan • Very few examples of high level competitors becoming elite without gr8 coaching • Why would trading be different? • SMB Culture: invest in our traders
  21. 21. Concentrated Practice • Turning One Trading Day into Ten: – Keep a detailed trading journal – Talk trading with the desk – Think about your trades after the close – Watch video tape your trading – Watch video tape of your trading with critical feedback from the partners – Perform visualization exercises – Talk with their mentor one-on-one about their trades – Practice on our simulator – PlayBook Trade – Rip through charts and rehearse potential trades
  22. 22. Edge
  23. 23. Your 30 Day Trading Challenge • Matt Cutts TED2011 of $GOOG: Try something new for 30 days • What something new can you do each day for the next 30 days to improve your trading? – Spend 30 minutes each day building and refining custom filters of your best setups – Spend 45 minutes each day backtesting trading ideas to automate – Eat a salad everyday for lunch – Walk 10k steps each day – Try a new trading setup with small size live, record your results, and journal your progress – Listen to music before the start of each trading open – Write an email about trading to someone not yet in your trading circle
  24. 24. The PlayBook • “You can be better tomorrow than you are today!”- Bella, The PlayBook
  25. 25. Best Time to be a Market Player! • Global companies without true global markets • Democratization of Quant Trading through innovation • Education, coaching and mentoring online • Multi-product, Multi-market Discretionary Quant Trader
  26. 26. Contact • • @mikebellafiore