Hi Mike,
It was a pleasure listening in on your webinar yesterday. Your book has been a great motivation, coming from the US Army I appreciate the clean-cut “straight to the point” approach; I’m looking forward to The PlayBook (March, I believe?). At 28 years old, I’ve been at the markets for only 2 years now; its a big obsession of mine to say the least. Unfortunately, after getting my degree in chemical engineering I realized I loved the markets more and most probably no trading firm would hire me without a finance degree so, I took it upon myself. I took a big rip early 2012 and decided to take myself out of the market, rethink my strategy, and do further research before going back to it. I’ve been reading alot; your book being the latest. After all the different readings and research, I’ve started incorporating price volume profile to identify supp/res and time volume to see where the “big guys” are getting in at into my strategy. Anyway… So, on to two questions I had if you could please answer.
As much as I’d prefer to day trade, my work hours wouldn’t allow it. So, I’ve been trying to incorporate “the tape” into multi-day swing trading. I really agree with your theory on it giving you an even better feel of the market. Do you think it would make a difference? Taking into account I will be holding these positions overnight or at least for the time I’m at work.
Also, what would you think the best strategy would be in my case? Always buying on retrackments? I’m not sure if buying/selling into supp/res would work for multi-day positions; or should I in-fact try this?
I appreciate any other insight you could provide.
Thank you for all your help,
@mikebellafiore
In my next book The PlayBook, in a section subtitled “There is always a market tuition”, I eviscerate the idea of starting a trading career without proper training. You read on trading forums “paying for training is a waste”. Unfortunately, you are yet another example of why that is not accurate. You never see the hundreds of emails written to me, and people like me, like yours. I wonder if one of the biggest advantages to being properly trained is not taking a “huge rip” and all the money saved for so not doing.
Ok so let’s leave the past in the past, but I thought your start could be a lesson for those who might follow.
So I love, just love, your thought process here of finding the proper time frame FOR YOU. The first step in your trading career is to determine whether you love trading. Next you must determine which products and time frame is best for you. Exposure to different types of trading and products is a great idea.
“But Bella that will take me so much time to figure out.”
My response, “Where are you going?” It will take you three years of training and trading to become a pro trader. Trading is not a quick path to riches. It is a game of skill that must be cultivated through purposeful practice, critical feedback and repetitions.
Swing trading is a wonderful pursuit for you. How do you use tape reading to find excellent risk/reward swing trades? Find the Stocks In Play. On Day One find the most important infection points. The place where most of the volume is being done and the big boys are fighting. When the stock moves away from these HUGE inflection points start your swing trade. That is one trade set up worth you trying to make your own.
GMan developed a Pullback Trade on higher time frames for our training program, The SMB Foundation. I will not give away the secret sauce. But GMan looks for outsized moves on heavy volume, waits for the stock to pullback, resume the direction of the outsized move, and then enters. You can trade this set up on any time frame.
I hope that helps.
Thxs for attending our webinar series The PlayBook. Tell your trading friends about this series please.
Mike Bellafiore
