What worked well on our trading desk in 2017

2017 was a very strong year for our trading desk in NYC.

After such a strong year it is important to study what went well so we can do more of it in 2018.

So what worked well for our trading desk in 2017?

Team Trading

Senior traders who embraced building Teams made more.  Junior traders who were willing to assist learned more and sped up their learning curve.  This Team is an example.  

The Daily Report Card

The Daily Report Card sparked our biggest improvement in 2017.  You can find more about that here.

Trading Bigger

Responsibly and consistently increasing size, in measured edge and where trader has shown consistency, helped traders increase their trading size and make more. Here is an anecdote of a firm trader successfully trading bigger.  One firm trading manager in Austin says this well to traders by asking them to set risk per trade and the stop and using that to quantify if they are big enough.

Stock selection

Trading the right stocks.  Dr. Steenbarger said it well in this post about key ingredients to success in 2017 that he observed: what you trade is as important as how you trade.

Cryptocurrencies and Blockchain

Open mindedness to bitcoin, other cryptocurrencies, and blockchain opportunities was key.  For example, experienced and stagnant traders started trading these opportunities and seeing solid PnL improvement.    

Sticking to the process

Sticking to the process! Even if trader is not seeing PnL jump immediately.  One senior trader stuck to his process and then experienced new success levels.  

Doing more with technology

Weekly technology meeting for Teams is a best practice to build on in 2018.  Meetings once a week as a Team and discussing what can be built to help the Team make more and play more offensive with their best trades is an excellent best practice.

Improved trader training

New hires are much better versed in technology and modeling because of our revamped Trader Development.  Once a week our head automated trader in NYC held a class on technology and modeling.

2017 was a strong trading year for NYC.  We have challenged traders to develop trading goals for 2018, building from 2017.  And we have started meeting with traders individually to start planning their improvement for 2018.

We are grateful for your feedback/comments/questions- mbellafiore@smbcap.com.

*no relevant positions

 


SMB Training Blog

[Recording] SMB Webinar: What Worked Well on the Trading Desk in 2017

In this webinar, Mike discusses the work he has been doing with SMB traders reviewing what they did well in 2017 and coming up with plans on how to do more of it, figuring out what their weaknesses are and help them with their goals for 2018. He will also share some best practices for you to incorporate into your trading.


SMB Training Blog

SMBU’s Options Tribe Webinar: SMB Options Desk Trader John Locke: The M21 Options Trading System—Playing Chess with the Market

November 14th, 2017

This week, John Locke returns to the Options Tribe to present the M21 options trading System which synthesizes many of his signature trading strategies, technical analysis, and trade planning.

Options Tribe meetings are generally free to the public and are held every Tuesday at 4:30PM ET. If you wish to register to this meeting, please click here.

We look forward to seeing you at the meeting!

Seth Freudberg
Director, SMB Options Training Program

The SMB Options Training Program is an eight-month program designed for novice and intermediate level options traders who are seeking an intensive training process to learn how to trade options spreads for monthly income. For more information on this program contact Seth Freudberg: sfreudberg@smbcap.com.

No relevant positions
Risk Disclaimer
Futures Risk Disclaimer

Options
Learn options spread
strategies for monthly
income from experienced
options pros


SMB Training Blog

SMBU’s Options Tribe Webinar: SMB Options Desk Trader John Locke: Transform Your Trading With The Rock Options Trading Strategy

October 17th, 2017

This week, SMB Options Desk Trader John Locke will be discussing his popular Rock Options Trading Strategy which has provided the best long-term returns of all of John’s rules-based options strategies.

Options Tribe meetings are generally free to the public and are held every Tuesday at 4:30PM ET. If you wish to register to this meeting, please click here.

We look forward to seeing you at the meeting!

Seth Freudberg
Director, SMB Options Training Program

The SMB Options Training Program is an eight-month program designed for novice and intermediate level options traders who are seeking an intensive training process to learn how to trade options spreads for monthly income. For more information on this program contact Seth Freudberg: sfreudberg@smbcap.com.

No relevant positions
Risk Disclaimer
Futures Risk Disclaimer

Options
Learn options spread
strategies for monthly
income from experienced
options pros


SMB Training Blog

SMBU’s Options Tribe Webinar: SMB Options Desk Trader Andrew Falde: The Netzero Options Portfolio

October 10th, 2017

This week, Andrew Falde will present the latest in his Netzero trading strategies which includes shorter terms spreads, momentum trades, commodity options, and the results of a 2008 study. Come learn how Andrew is expanding this powerful trading concept into a diversified portfolio of high-performance options trading strategies.

Options Tribe meetings are generally free to the public and are held every Tuesday at 4:30PM ET. If you wish to register to this meeting, please click here.

We look forward to seeing you at the meeting!

Seth Freudberg
Director, SMB Options Training Program

The SMB Options Training Program is an eight-month program designed for novice and intermediate level options traders who are seeking an intensive training process to learn how to trade options spreads for monthly income. For more information on this program contact Seth Freudberg: sfreudberg@smbcap.com.

No relevant positions
Risk Disclaimer
Futures Risk Disclaimer

Options
Learn options spread
strategies for monthly
income from experienced
options pros


SMB Training Blog

SMB Webinar: How our most recent hire went from Home Depot to desk trader

I wrote about the guest of our next trading webinar this Thursday, 9/28, at 4:15PM EST here.

He was the winner of The Winning Trader, a course we developed to give our trading community a chance to experiment with trading setups with edge from our desk.  His consistent effort, program-leading PlayBook trades, conscientiousness, perfect attendance at daily trading mentoring sessions, passion, active questions, creation of a chat room just for program students separated this student from other outstanding students.

First, he won The Winning Trader and trained for free on our desk.  Now he has been hired on our desk to trade with us and earned a fully funded trading account!

The home run for everything we do at SMB Training is to find serious trading students, train them, and hire them for our desk.  And if they want to continue trading independently, but at a much higher level, that is fantastic as well.

We will shine a light on this former self-directed and independent trader because he is an inspiration for all who want to trade professionally.  He was in a job that was not his true passion.  He wanted to find a path to becoming a professional trader at a prop trading firm.  And he has!

Rob will share his trading and training journey with you.

Merritt and I will ask him questions about his experience from Home Depot manager to prop trading desk.

You will have an opportunity to ask Rob questions about his training and trading.

If your goal is to trade professionally or just better independently, learn from someone who has figured this all out.  Someone like Rob.

We hope to see you this Thursday.

*no relevant positions


SMB Training Blog

An anecdote from a developing trader on the prop desk- sizing

One of our developing traders is consistently profitable.  Undeniably, he trades with edge.

This is a great position to be in.  But for some traders it is not sufficient.  They are making money, but they are not making enough.  And when you are sitting next to and behind 7-figure traders it is not enough.

So this trader sought to trade bigger.  He has edge.  He is not making as much as he should nor wants. So the solution for this trader logically was just to trade bigger.

That did not go well last month.

Why?

This trader made a common mistake of developing traders in how he sought to increase his size.  He was too big in too many trades.  He was not just getting bigger when in his best traders, but all trades. Trading bigger then was not the path to making more.

We had a nice chat about his monthly review and attacking this trading issue.  This trader was armed with answers.  They might provide a blueprint for you to improve your sizing:

  1. Trader will outline his A+ setups.
  2. Trader will focus on adding size in these A+ setups.
  3. Trade will not size up in other traders.
  4. Trader will share a report card with his Team Leader, Dr. Steenbarger and me on sizing daily.

One goal at a time given hyper focus is a best practice for trader improvement.  For this trader, at this time, on this month, that will be sizing, with feedback from market veterans.

As always, your feedback/questions are welcome at mbellafiore@smbcap.com.

*no relevant positions


SMB Training Blog

SMBU’s Options Tribe Webinar: SMB Capital’s Mike Bellafiore: Five Success Stories from SMB Capital’s Trading Desk

September 5th, 2017

This week, noted author and SMB Capital founding partner Mike Bellafiore returns to the Options Tribe to share stories and observations about traders who have achieved sustained success on SMB Capital’s trading desk.

Options Tribe meetings are generally free to the public and are held every Tuesday at 4:30PM ET. If you wish to register to this meeting, please click here.

We look forward to seeing you at the meeting!

Seth Freudberg
Director, SMB Options Training Program

The SMB Options Training Program is an eight-month program designed for novice and intermediate level options traders who are seeking an intensive training process to learn how to trade options spreads for monthly income. For more information on this program contact Seth Freudberg: sfreudberg@smbcap.com.

No relevant positions
Risk Disclaimer
Futures Risk Disclaimer

Options
Learn options spread
strategies for monthly
income from experienced
options pros


SMB Training Blog

SMBU’s Options Tribe Webinar: The Advanced Netzero Options Trade, Presented by SMB Options Desk Trader, Andrew Falde

Andrew will discuss the benefits and challenges of his Advanced Netzero Options strategy. Topics will include: developing skillful execution, understanding risk-based sizing, dealing with imprecise options models, and more. Read more […]
SMB Capital

An anecdote from the trading desk after a trader’s biggest loss

One of our developing traders showed great progress last month. He was trading with real edge.  We were very proud of his work.

We were excited to watch him grow over the summer months. We talked internally with our support team about bumping him up for this month. And we did.  What came next?

Next came the big rip. Friday was his worst day to date. He took an outsized loss in LULU, after a period of illiquidity.

I was thinking about what to say to him this weekend. My sense was Monday, and this week, would be an important week for this young trader. Handled poorly and he would make the same mistakes many make.

I Read more […]
SMB Capital

SMBU’s Options Tribe Webinar: Live From New York: The ten qualities we look for in SMB’s Options Desk traders

This week, Seth Freudberg will share the ten qualities that SMB’s Options Trading Desk is looking for in traders that we are recruiting. Andrew Falde, who will be in New York presenting the Netzero options trading strategy to a live audience of participants, will share his personal journey from retail trader to professional proprietary trader on SMB’s options trading desk. Read more […]
SMB Capital