We produced a new video which we have shared below. The video tracks one of our traders for a day. It is called “A Day on the Street,” and produced by Maureen Holohan from “$Game.” On this video you can hear me share, “The market offers you so much data to doubt yourself. And you must believe in yourself.” And that is so true. The market provides you so much data that can convince you that you do not belong. But you must find a way.
There will be good runs and bad. Many traders had a nice run in October and November. And from what I hear December was an awful month on the Street for almost every trader. The good traders make the adjustments necessary and enjoy a long and prosperous career. And these adjustments are often minor. I have seen good traders become great. I have seen poor traders become superstars. And politics aside, if you ever doubt that you are capable of something, in this case improving your trading results, Tuesday’s inauguration ought to wipe away any incertitude. You can get better. And those that don’t find work elsewhere. This is the game.
It always amazes me how difficult new traders make trading. And during times like the above the answers are simple. Go back to the basics. What trades work best for you? Make a list. Just make those trades for the next week. Make these trades with small size. What stocks are best for you? For SMB traders it is the Stocks in Play. So make sure you are in these stocks. JToma, a Senior Trader at SMB, sent me a great quote today on this trading topic: “The cheetah, while the fastest animal on the African plain and can outrun any of the prey it feasts upon, always chooses to go for the young, weak or sick. Once identified, he/she attacks with laser guided focus and effectiveness. It is only then that the kill is most likely. That is the epitome of a professional trader.” Be the Cheetah.
Having a slump is all part of the learning process. I have blogged about this before on the SMB Capital Blog where we share market stories and trading lessons. It is not supposed to be easy. Did you ever wonder why so few get to trade for a living? It is like joining this fancy golf club. They don't let everyone in. And to stay in you must follow all of their rules. Well right now those who are underperforming are not following all of the rules. And the club doesn’t like that. So they have imposed a substantial fine on your membership. And now you need to pay it back. Follow the rules and you will be back in good standing. Ignore some of the rules and they will terminate your membership.
So if you are underperforming do not panic. The best part about this job is that the past is the past. And starting tomorrow you can be positive every single day for the rest of the month. And have a great month. And then you can parlay that positive energy into an excellent quarter. And you are off to a great year. Along the way figure out the skills you need to better develop. Work on them every day. And the next time you underperform and need to return to the basics that list of plays will be longer.
When I first started my account was negative 36k after six months. Eleven years later I am still trading. How? I am the Cheetah.
Mike Bellafiore
Partner
SMB Capital
==================================================================
Michael Bellafiore is a co-founder of SMB Capital, a proprietary trading firm specializing in short term equity trading. Mike has traded professionally for over a decade and is a graduate of the UConn School of Law and former member of UConn’s Board of Trustees. SMB is recognized as having the most extensive and rigorous training program on the Street for new traders. SMB Capital’s training program was recently highlighted in Trader Monthly and the TV documentary, "Wall Street Warriors."
Contact Info:
Email:
mb*********@sm****.com
Phone: 212-918-1220
Websites:
www.smbtraining.com
www.smbtraining.com/blog
