THE STATE OF TRADING

BellaMike Bellafiore's (Bella's) Blogs11 Comments

I received this email from Reader Eric:

Hello Mike,

I wanted to share with you an interesting paper I found on the T3 website.

http://www.knight.com/newsroom/pdfs/EquityTradinginthe21stCentury.pdf

It addresses the state of trading in today’s environment.  Over my year of trading I have seen successful groups on my floor completely wiped out by the changes in the trading environment.  Yes, they were products of leaning on big bids/offers and rebate trading.  Yes, they haven’t adapted to the changing environment.  You once wrote on the blog, if your trading environment is not doing well then be the one to change it.  I have tried to mold myself into a winning player and yet the state of the market is making trading look impossible.  I’m interested to hear your insight, maybe even blog about it.  Looking forward to hearing from you.

Eric

Bella Responds:

Great job by T3 sharing this paper with the trading community!  Eric thanks for the question.  I have said privately and now I will publicly that 09 might have been too difficult a year for most new traders to start, especially those in “an environment of no value”.  My best friend from law school, who finished 2nd in his class, started in 02 and never had a chance.  The shift from a downtrending momentum market to an uptrending market perhaps was just too difficult for most new traders in 09.

1) Well done on finding a way to live to play another day!

2) I feel like this question is five months two late.  The market has changed again.  There is so much opportunity again! This is not a difficult trading market.  With our Trades2Hold there is exciting trading opportunity everyday.  Just from recent trading check out: FDX, NKE, TIF, LVS, MGM, TIVO, FUQI……. (you get my point).  After the close my thoughts are consumed with how I could have made more and not even remotely thinking 2010 is a tough market.

3) I just don’t see the difficult market anymore!  It’s not there right now.  Good traders should be making plenty of money.

4) Great line about making your trading environment better.  No firm will ever stop you from implementing an excellent idea or trading strategy to help the firm, forbid money making or disallow crushing the market.  It takes one person to carry a row, which can carry a desk, which can carry a firm.  Why can’t you be the one whose trading desk everyone huddles around after the close?  “How did you do that?”  “How did you make your money?”  Why can’t that be you?

5) I will leave you with this quote from Lincoln, ” I am not bound to win, but I am bound to be true.  I am not bound to succeed, but I am bound to live by the light that I have.”

Thanks for the question.  And best of luck with your trading!

11 Comments on “THE STATE OF TRADING”

  1. Hi Mike,

    Is this a good market for new traders? “The shift from a downtrending momentum market to an uptrending market perhaps was just too difficult for most new traders in 09.” Since the market is currently in an uptrend, if say in Sept, the market turns back to a downtrend again, would that no longer be a good new traders market?
    Thanks

  2. Hi Mike,

    Is this a good market for new traders? “The shift from a downtrending momentum market to an uptrending market perhaps was just too difficult for most new traders in 09.” Since the market is currently in an uptrend, if say in Sept, the market turns back to a downtrend again, would that no longer be a good new traders market?
    Thanks

  3. 2009 has been a difficult year, but wow i must say i have learned so much from it. I am blessed to have experienced it because it has given me exposure to many trading regimes in just one years time, and as a result it made me more confident as a trader.

  4. 2009 has been a difficult year, but wow i must say i have learned so much from it. I am blessed to have experienced it because it has given me exposure to many trading regimes in just one years time, and as a result it made me more confident as a trader.

  5. 2009 has been a difficult year, but wow i must say i have learned so much from it. I am blessed to have experienced it because it has given me exposure to many trading regimes in just one years time, and as a result it made me more confident as a trader.

  6. Thx for the shout out Mike. It was quite a difficult year but I am willing to make the transition into this new market.

    I think I’ve let the difference in style and 20 cent shakes get to me too much. One good trade, one good trade, one good trade…..

  7. Thx for the shout out Mike. It was quite a difficult year but I am willing to make the transition into this new market.

    I think I’ve let the difference in style and 20 cent shakes get to me too much. One good trade, one good trade, one good trade…..

  8. Thx for the shout out Mike. It was quite a difficult year but I am willing to make the transition into this new market.

    I think I’ve let the difference in style and 20 cent shakes get to me too much. One good trade, one good trade, one good trade…..

  9. Hi Bella,

    I started trading in June 09 and did not do well. About a month ago, I signed up for SMB foundation development remote training program.
    Looking through the lens of SMB training, I see opportunities every day and was very stressed out that I did not do well in 2009.
    Your public acknowledgemnt that 09 was a tough year for a new trader ( let alone a trader without any training) has given me HOPE and relived some of the stress.

    Thanks,

  10. Hi Bella,

    I started trading in June 09 and did not do well. About a month ago, I signed up for SMB foundation development remote training program.
    Looking through the lens of SMB training, I see opportunities every day and was very stressed out that I did not do well in 2009.
    Your public acknowledgemnt that 09 was a tough year for a new trader ( let alone a trader without any training) has given me HOPE and relived some of the stress.

    Thanks,

  11. Hi Bella,

    I started trading in June 09 and did not do well. About a month ago, I signed up for SMB foundation development remote training program.
    Looking through the lens of SMB training, I see opportunities every day and was very stressed out that I did not do well in 2009.
    Your public acknowledgemnt that 09 was a tough year for a new trader ( let alone a trader without any training) has given me HOPE and relived some of the stress.

    Thanks,

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