Guest Post from SMB Blog Reader Yaniv Hamo One of my favorite thinking exercises is about what it means to be living as opposed to merely exist. The essence of what separates the living from the grey masses. Working 9‐5, family and kids, watching TV and going on trips – does not make the cut. That’s what the masses are doing. … Read More
How to Think About a Loss
We all lose here and there. It’s just part of trading. You can’t avoid it, but that isn’t the issue. Where many traders struggle is how to handle a loss gracefully. Instead if equating a trading loss with personal failure, shift your mentality for what a loss means. Does it mean you’re stupid? Not necessarily. Does it mean you were … Read More
Improving Trader Performance
It can be successfully argued that stock trading is pure gambling. While there are similarities, the successful trader will note the differences and similarities thus enhancing his or her performance by 1) focusing on the process, and 2) understanding the nature of the markets. In the following, I list several opinions about stock market speculation, provide a problem gambling test, … Read More
Are you a virtual trader in isolation?
Below is an email I received from a Romanian intraday trader involuntarily in isolation. 1) Great anecdote about a foreign trader finding their path. Enjoy the story. 2) Any ideas to help this trader escape isolation? 3) Any Romanian traders (or other virtual traders) wish to start a virtual trading group? Leave a comment below. Dear Mr. Bellafiore, I thank … Read More
Where would you have sold?
I received this email last night about an excellent risk/reward opportunity in PM. The SMB Reader below is asking all the right questions. But I ask you for a fun exercise. Where would you have sold? Hello mr. Bellafiore, Thank you very much for sharing your trades and ideas in SMB blog. I am reading it every day and it … Read More
One Good Trade ($PLCM)
I struggled with RVBD. I struggled in LRCX. Same with CREE. And ABT. And BAX. My EBAY trade did not work out as I expected. Nor CRUS. I was sitting in my office a few minutes ago talking to a frustrated mentee saying: “I cannot seem to make money in anything.” “Others around me seem to be making money except … Read More
I Cannot Hit My Losers
Dear Bella, I have been a fan of the work you all do here on the SMB Blog, bringing interesting and informative trading thoughts and ideas to us. You occasionally provide responses to readers’ questions so perhaps you’ll do the same for me. After a few years of part-time study and now seven months of full-time attention, I have reached … Read More
The Hunted
“They’re just hunting for stops!” says a frustrated trader as a position once in the money is now stopped out. I have been hearing this a lot on our trading desk. I heard GMan say it this open. I know I was thinking it last night. Definitely heard some guys who sit near me trumpeting this wall street cliche. We … Read More