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

So what is your money blueprint set for?

Are you programmed for managing your money well or mismanaging it? Are you a spender or a saver ? Wealth principle: The only way to permanently change the temperature in the room is to reset the thermostat. In the same way, the only way to change your level of financial success "permanently" is to reset your financial thermostat. You can become an expert in real estate or the stock market. All of these are tremendous "tools." But in the end, without an inner "tool-box" that is big enough and strong enough for you to create and hold on to large amounts of money, all the tools in the world will be useless to you. Your income can grow only to the extent that you do. Remember that the first element of all change is awareness.Watch yourself, become conscious, observe your thoughts, your fears, your beliefs, your habits, your actions, and even your inactions. Put yourself under a microscope. Study yourself. Wealth principle: Consciousness is observin...
Post a Comment
Read more

Wealth File #4 Rich people think big. Poor people think small

Wealth principle: The law of Income: You will be paid in direct proportion to the value you deliver according to the marketplace. The keyword is value. It's important to know that four factors determine your value in the marketplace: supply,demand,quality and quantity. The factor that presents the biggest challenge for most people is the quantity. The quantity factor simply means, how much of your value do you actually deliver to the marketplace? Another way of stating this is, how many people do you actually serve or affect? Most people choose to play small. Why? First, because of fear. They're scared to death of failure and they're even more frightened of success. Second, people play small because they feel small. They feel unworthy. They don't feel they're good enough or important enough to make a real difference in people's lives. But hear this: your life is not just about you. It's also about contributing to others. It's about living true...
Post a Comment
Read more