Skip to main content

Communication

“No man’s opinions are better than his information.” —J. Paul Getty, Founder, Getty Oil

Not only must a prop trader communicate their best trading ideas but they must review their trades.

REPLAYING IMPORTANT TRADES

“Find the trading plays that make sense to you and make more of them with more size.” —Mike Bellafiore, SMB Blog

Good prop traders constantly strive to improve their performance.

an old school self-improvement technique: Replay important trades in your head. When the market slows, this is the time to think through your important trades. Do this multiple times during the trading day. Ask yourself these questions:

 Was there a spot where you could have added more size?
 Did you sell too early?
 What made the stock go up?
 Was there a catalyst for the move?
 Did you assume too much or too little risk?

Replay the trade and construct improvements for the next similar trade.

Traders who watch video can find setups where they can add more size, plays that are not working for them, patterns that they did not discern initially, gain screen time that improves their skills, and imprint their best setups in their mind.

Also, talk to other traders on your desk who are trading your stocks. Ask for their thoughts. You will get better as you gain experience, but you will get much better if you improve your technique while you are gaining experience.

Print out your trades. Were you disciplined? Did you execute on your stops? Did you do worse in a stock than you thought? Are you trading some stocks better than others? Are there some stocks that you just don’t trade well?

Get into the habit of evaluating your more important trades during the day.

Comments

Post a Comment

Popular posts from this blog

Maximizing Your Profits with Scoring

SETTING YOUR MAXIMUM INTRADAY TRADING LOSS First things first: set a max intraday trading loss. There will be days when you just do not have it. Why do you think coaches pull their players when they are not playing well? They are more harmful on the field than off. When you are underperforming, you are hurting your team and your trading business. You need a system to yank yourself over to the bench. A stop loss is your answer. TRADING BASED UPON THE TIME OF DAY A good trader makes note of what time of day it is, when he trades most profitably, and adjusts his trading to fit such times. Your numbers at the end of the month will not reflect your true trading potential. Make the most trades with the most size during the trading periods that statistically are most profitable for you. Money saved during your weaker trading periods is money earned. Consistency The fact is that most trades you make will start working for you right away. But the new traders also hold stocks that are trading ag...
Post a Comment
Read more

Self-Discipline

One must gain mastery over self the person who is not master of himself can never be master of others. Lack of self-mastery is, of itself, the most destructive form of indefiniteness. By mastering the three appetites responsible for most of one's lack of self discipline. The three appetites are (1) The desire for food, (2) The desire for expression of sex, (3) The desire to express loosely organized opinions. When a man becomes master of these three appetites, he has developed enough self-discipline to conquer easily those of lesser importance. Self mastery contempates sufficient control over the appetites to enable one to feed them what they need and withhold food not needed. Take the desire for physical food, for example. The majority of people are so weak in self discipline they fill their stocmachs with combinations of rich food which please the taste but overwork the organs of digestion and elimination. They pour into their stomachs both quantity and combinations of food which...
Post a Comment
Read more

Blessing In Disguise

I used to hate my enemies. But that was before I learned how well they were serving me by keeping me everlastingly on the alert lest some weak spot in my character provide an opening through which they might damage me. In view of what I have learned of the value of enemies, if I had none I would feel it my duty to create a few. They would discover my defects and point them out to me, whereas my friends, if they saw my weaknesses at all, would say nothing about them. ACCEPT FAILURE AS A NORMAL PART OF LIVING. VIEW IT AS PART OF THE PROCESS OF EXPLORING YOUR WORLD; MAKE A NOTE OF ITS LESSONS AND MOVE ON.  -Tom Hobson  There can be no failure for the person who "still fights on:' No one has ever failed until they accept temporary defeat as failure. I am convinced that failure is Nature's plan through which she hurdle jumps those of destiny and prepares them to do their work. Failure is Nature's great crucible in which she burns the dross from the human hear...
Post a Comment
Read more