How to Become a Consistently Profitable Trader (like you deserve to be)

in this video learn how to become a consistently profitable trader like you deserve to be hi I'm Mike bellifiore co-founder of SME capital and we're a proprietary trading firm located in midtown Manhattan and I'm also the author of the trading classic one good trade and the playbook click our subscribe button so you don't miss any of the videos they're producing for you in the trading community in this video I share in detail the path our traders take to become consistently profitable and then star traders we're sitting in our trading room in New York City our floor managers there our trading coach dr. Steve augers they're um they're team leader for the particular team is they're the senior trader and his junior traders on his team are also there we meet monthly to over the progress of all the traders on each team one particular team is set to go over their month so the senior trader goes and he talks about his month and he is killing it he's crushing it having a grade had a great month and doing as well as he's done in a really long period of time the next trader goes junior trader on his team doing really well taking that next step forward in his progress next trader goes also doing really well trading particularly well finding things that he really likes to trade so I'm sitting there listening to all this and this all captures my attention because it's unusual for everybody across the board to be doing this well and so I asked why are you guys all doing so well senior trader chimes in well it's the market there's tremendous amount of opportunity that's why we're killing it another junior trader steps forward and says well you know I'm doing so well because I stopped doing all the stupid stuff and once I stopped doing all the stupid stuff I really started to trade better another trader steps forward and says I think we're really doing a great job together collectively as a team sharing information dr. Steinberg are in the room hearing all of this who is the very best trading coach in the u.s. says there's an old saying in Kentucky you're either a show horse or you're a work horse and what I'm seeing in this room are a bunch of workhorses if you want to be a consistently profitable trader a successful trader you need to be a workhorse it takes time legend this is an email that I received from a trader who was nine months into his trading career hi Mike how you doing and now been trading about ten months at the firm different firm than ours and learning from one of the best traders for our style of trading the firm as a whole finds this to be one of the most difficult markets and decades yet some of the veteran traders are still putting up great numbers and even some of the new guys are able to scrape together a decent month as for me I've really been struggling and I'm probably towards the bottom of my class my whole life I've succeeded and become the best at whatever I've put my mind to whether through intelligence or sheer determination yet for the first time ever I find myself at a total loss every month I put in more effort a while I learned so much each month it never translates into results I feel as if I'm always one month behind this market where whenever I push my trading to the next level the market gets harder and some of my best plays stop working and the market finds new weaknesses in my trading after putting so much heart and effort into something and getting no positive feedback the emotional aspect is really taking a toll on me well this has been my dream job and I don't know what else I would do I'm starting to get pretty disenchanted with the whole thing at what point should a trader give up again this was written to me by a trader nine ten months into their trading career what I'm gonna say to you right now after reading that email may be pretty shocking that was written by a trader who's now one of the top I mean star traders in the US this trader is gonna do north five million dollars in trading profits this year and prior to that he had many years where he made multiple millions of dollars a year his nickname from his colleagues based on his trading prowess his legend he's truly one of the great active traders that I know and that is out there it takes time it takes time we read what he just wrote and so after he actually sent me this email I had a conversation with them we talked in depth about his decision and I said look you've got a great mentor you've got a lot of resources behind you you've got ability this is something you really love to do give it another 12 months let's see we're at he did the rest is history if you want to learn three real world setups that our traders use including the simple setup that we teach all of our new traders and the setup that turned one of our traders into a seven-figure big money earner check out the free webinar that we're currently running just go ahead and click the link that should be appearing right now at the top right hand corner of your screen that's going to open up this free registration page in the new window so don't worry you're not going to lose this video you're gonna learn more in a couple of hours from this trading workshop then from years of online education not yet not yet not yet and so we used to run something called a college training program and so college students would come in and they could take our training and we'd get a little bit of a look at them and they'd get up a really great education at trading and so at the end of one of our college training programs I took all of the trainees at the lunch and looked around the room and said hey are any of you making money yet as a trader and they all kind of looked away almost all of them looked away turn their head sheepishly didn't want to answer except one and the one trader on college student chimed in and said well I am now and we got back to the office and pulled recruiting aside human resources pull decided to make sure that young man applies to the firm he did and he's got on to become really one of the great traders at our firm one of the one of the really top traders at our firm somebody who has made well north of a couple million dollars a year multiple years now over the course of his short career and you know I remember him being just a young man in college and I even though he was one of the guys who was getting it a little bit in college and his first year his trading profits with us were $60,000 in his second year his trading profits overall were $180,000 and most of that was towards the end of year two he didn't make seven figures over a million dollars in P&L until his third year and so if you're not doing as well as you want right now not yet if you don't think the results that you're showing right now are not conducive to your ability not yet if you think you should be making a lot more than you are right now not yet not yet not yet not yet we have only trained one trader in the course of our firm's business we started in 2005 so in 15 years there's only been one trader that we've trained that made a million dollars in his first year only one not yet not yet not yet the path to consistently profitable trader patience we talked about that not yet not yet not yet remember legend a foundation sample daily routine a playbook in your niche technology the good fail consistently profitable trader sizing breath notice that sizing comes after being consistently profitable trader notice how many things come before becoming consistently profitable trader at our desk at SMB we're proprietary trading desk located in New York City we fund traders we hire them from zero we hire them as new traders and give them all the resources they need to become seven-figure traders they start with building a strong foundation they need to learn everything they need to know about trading we don't expect them to be able to make money unless they first learn everything they need to learn about trading so the first step is SME DNA they don't actually even come into our doors to train with us in-house you can't even actually be an intern and walk through our doors unless you take SMB DNA can't walk in the door and so that's the beginning of us teaching traders their foundation and then the next step is to take the winning trader that's where they sample Sam sample they are exposed to different setups that our best traders are taking on a daily basis we break those trades down into variables and we teach all of those setups to our new traders there's break out trays mundum trade scalp trades breaking news trades market play trades arm trades across the boards backside trades all the trades that active traders take who were elite and consistently profitable we break down and share with our traders and then let them experiment with all of that's supplemented with daily mentoring sessions so we have an AM meeting we have a meeting after the close senior traders come in and talk about what they're doing well and how they're doing it well how they're finding stocks and what their best processes are for trading at their best we have a meeting after right after the open at 11:00 o'clock talk about the best setups from the open that guys can be taking from that day so the learning in real time we have a playbook session we have a reading the tape session where they learn order flow and and how to read the tape you know one of the skills that prop traders have that retail independent traders sometimes lack but the key is they're sampling they're sampling we and and we let after we expose our traders to all these different types of setups we let them choose the niche that they're going to focus on we let them choose the business that they're going to build with inside of the prop firm and everyone's different everyone trades different setups they all make them their own from these setups that we teach them and they all have a daily routine I'm going to talk about 20 habits you might pick up add to your trading to help you trade better having a consistent routine helps people perform better they have a playbook in their niche they develop that by doing a playbook exercise each day archiving setups and make the most sense to them breaking down to coding the setups that worked that made the most sense to them each day and then that becomes the that's the genesis of their trading business technology we have weekly classes where we're teaching people how to use technology to build filters and scripts and and automation and then consistently profitable a trader we don't expect and so we're hiring really terrific people they're interning with us we're hiring the best of the interns we don't expect them to really make money until a little bit later in their trading career we give them plenty of time we don't expect somebody who we've hired to kill it month three so if we as what people consider to be the most successful prop firm in the u.s. at building traders from the beginning into consistently profitable and then seven-figure traders that's what we're known for if we are and traders have all these resources they've you know millions of dollars of capital and the best coaching the best technology experienced traders around them who do really really well everything you need if we don't expect them to make money right away and maybe you shouldn't find your talent with the power of sample so to many who take one or two training courses fail and then they conclude one of two things either I'm a bad trader or the training is is a scam so let me put this in context so I'm a former Division one athlete and when I grew up I played three sports I played soccer I played basketball and I played baseball I played the most soccer spent most of my time playing soccer I practiced the most at basketball and I played the least and practiced I did practice baseball but practice the least of any of the sports playing baseball and you know as I grew older it turned out that you know I could have practiced as many hours in the day as they possibly could for soccer and if I did that I was never going to be a division 1 soccer player I could have practiced hours upon hours and upon hours more playing basketball and I was not going to be a division 1 athlete but for whatever reason I can throw a baseball really fast and that's part of you know abilities that that I had and then that were developed but we need to recognize that as traders we have unique personality and cognitive strengths and we need to build on them and if we go into the wrong niche learning as a trader we're not going to succeed we have traders on our desk who if we made them scalp would not be successful but if we let them do the things they're good at can be seven figures that are seven-figure traders we have traders on our desk okay who if we made them to be swing traders would not be seven-figure traders find your talent after sampling you got to try a bunch of different types of trading different types of products you got to give it some time and then from there see where your talent lies for trading and gravitate towards that daily routine drives your improvement James clear wrote one of the great books last year that I recommended to all the traders on our desk and in our community called atomic habits must read find some time to pick it up he also writes a great newsletter and in a recent one he wrote you do not rise to the level of your goals you fall to the level of your systems your goal is your desired outcome your system is the collection of your daily habits that will get you there this year spend less time focusing on the outcomes and more time focusing on the habits that precede the results our job is to develop a routine of best practices that are effective that we turn into habit that's what allows us to improve as a trader for example here are 20 habits for traders unless you want to fail that we recommend to our traders and that they put on their calendar and implement into their trading day a daily playbook tape reading watching back recorded film from the trading session that's most that that's most interesting to them where big moves came after mindfulness 10 minutes a day of mindfulness practice learning daily so one of the things I do each day is I walk to and from work well I used to walk to and from work but now that we have the coronavirus fears we actually moved out of the city into a shore house this big shore house and that's where sort of all hold up but what I used to do was walk to and from work and I would listen to audiobooks I listen to audiobooks I listen to podcasts and I built into my day time for me to learn sleep properly I wear this or a ring it measures my sleep I don't get a certain amount of sleep i ordering gives me a really bad score I know that I'm not gonna perform as well there are traitors on our desk who risk down when they don't get a good night's sleep traitor view this is a great tool which you can use that helps you to crunch your stats a book of charts every time you see a really great chart that preceded a really big move that you want to capture you take a snapshot of that chart you mark up the chart and then you put it into a book over the weekend you go through your book of charts so you internalize the really great charting setups that you're gonna build your career out of exercise so one of the great things that I did last year is hired a personal trainer even though we're secluded right now actually we have these virtual sessions with my trainer who is in New York City right now and you know over my iPad how we do a bunch of workouts I got a bunch of bands I got a TRX and we get some good workouts in no excuses a diet what are the things are gonna lead to thinking well it's a big part of your life as a trader mentoring sessions technology what technology you're gonna build to find your best trades and prep a daily report card I'll talk a little bit about that rip through charts at night rip through a bunch of daily charts to find technical setups that may visit the next trading session talk to traders when you're in a trade you're going to have a perspect that may not be complete go talk to other traders about theirs put that together gives you more complete picture of what really happened to the trade gameplan your big trade so what's gonna be the big trade right around the corner that you want to be involved in game plan before your a.m. meeting what are the stocks you want to trade on that particular session what are the levels that are most important to you what's your top idea what alerts you're gonna put into your system for your third fourth fifth six ideas daily gratitude this is an exercise I do with my kids before we go to bed I say to them what are the three things that you're grateful for from the day admittedly sometimes I'm met with blank stares and I sort of coax them into oh you got a new basketball hoop from your aunt today oh yeah dad we got a new basketball hoop but that's a great that's a great exercise to go through before you go to sleep train your brain so brain HQ is a great site to visit where you can work on your mental acuity and relationships do you have strong relationships that ground you and make trading so that you can put trading into its proper perspective you want to be happy outside of trading so that when you are trading you're trading better so this is a snapshot of one of our really one of the traders who I just think the world of I don't know that there's a trader that I root harder for and that I'm really more proud of his success then then than anyone and so and I have to sort of share this anecdote which is for I think about the last 18 months I've been coaxing him every time I see him pass me every time we have a private meeting that he's going to be the next green shirt trader at the firm you earn a green shirt if you make a and trading profits in the year he's been very consistent but has never gotten up to that level and so I've been on him and on him and on him for him to think about him being the next green shirt trader at the firm that he can be somebody who makes those kind of profits but before I even really started to get after him about stuff like that he came in to meet with our risk manager and myself about getting a risk bomb with a particular strategy and I was a little bit lacs to give the risk bump prior to the meeting but he sat down and he plopped his trader view stats in front of our floor manager and myself and the stats were gorgeous 10 out of 10 just just supermodel ish looking equity curve for the particular strategy which he wanted more capital for and I'm really glad I didn't say anything I'm glad the floor manager didn't say anything because we looked at that equity curve and did the only thing that anyone would possibly do when they looked at an equity curve like that which is we gave him more by power and but you know he earned it because he kept the stats he used technology to show him that he deserved more risk and us that he deserved more risk but you should do that too is at home you shouldn't be giving yourself more risk unless you can sit down with trading stats and show to yourself that you trade a particular strategy really well we tagged all of our trades we measure all of our trades at our firm so we know which trades we trade the best we know what our stats are for break out trades we know what our stats are for fade trades we know what our stats are for market play trades we know what our stats are for breaking news trades and on and on and on you should know that as well this is what professional traders do to ask for and receive more capital so let's picture shark and this is a picture shark getting his first black shirt at the firm get a black shirt if you make 2 million and trading profits in a year and so shark is probably it's probably our best overall trader at the firm and it couldn't be happier for shark and you know shark is just remarkable I I still to this day to remember when after he earned his green shirt his first green shirt at a million dollars in trading PNL writing that you know his his ultimate goal was to be able to make 10 million dollars in a trading year and specifically how he was going to go about doing that and when I read that it just inspired me to be a better coach it inspired me to be a better mentor a better you know managing partner of a firm to make sure he had all the things that he needed to be able to hit that level and nobody epitomizes the importance of a growth mindset better than shark always trying to get better the fact over the last two years he's gotten much better with marketplace as volatilities expanded volatility has been above 60 for a long period of time we haven't seen that in a really long period of time he's been able to take advantage of this recent market and and really crush it you know and and and so I remember having a bootcamp with dr. Steinberger reteaching shark marketplace him working on them month by month getting a little bit better month by month because he started and became really good in a low-volatility environment there are certain setups that work really well when vixx is 15 or 12 that you need to go to to be able to be an elite trader like he was it's actually really hard to be an elite trader when vixx is 15 and below even 12 below at certain times and he did that he figured that out and then and I sort of chuckle looking at this picture of us with shark earning his first buck shirt because and this is this is a career achievement at our firm you kind of come up the curve wanting one day to be in a picture like this and earning a black shirt it's like the top of the mountain but because he has such a growth mindset because he keeps learning you know this month and you know volatility and opportunity was there but this month he earned more than that in one month he earned more than a black shirt in one month he made over three and a half million dollars in in March and one month because he was working on his market play trades and walked into a market where that really paid and I chuckle because this used to be you know a great day at this point this was his new high day three hundred seventy thousand dollars in one day but one of the best practices that we recommend for our guys is to do a daily report card he sends this to dr. Steen Barger and myself each day after the close and we give him feedback on what he's doing he usually focuses on one thing that he's working on intensively to improve his trading so we can get to the next level and then again we provide feedback look what he writes in this even with a new high score I don't leave absolutely gung-ho how can I get better how can I get better how can I get better how do I find my trading identity alright so I talk about hey find your niche find your niche after doing some sampling but what does that really all look like so here's some thoughts that I shared recently on our blog on finding your trading identity foundation train so you have a solid foundation in trading that's got to come first that sample gained exposure to different setups with edge to see which ones make the most sense to you consider how you've been successful in the past and find setups that accentuate those strengths so if you're a really quick thinker and you've noticed you've been faster at thinking than other people in the in the past you just sort of get things really quickly may be really good at math think about scalping if you are a really great analytical thinker all right well you're gonna you're gonna gravitate towards trades that work for your cognitive strengths all right then build the playbook this is your business I wrote a book called the playbook the second book that I wrote I hear it's pretty good I might want to go check it out if you don't know how to actually build the playbook or you go to our YouTube channel where we have lots of examples of playbook trades for you guys to learn about I'll also show you a tray a little bit later in PlayBook form that you can co-op for your trading sit with your trend trading identity before the open so there's a video that I've I did with Austin Mitchum there's a great Australian equities trader take who took the principles that I taught at an SMB DNA and applied them to the Australian equities marketplace but one of the things that he does to make sure that he is at his best and takes the trade that highlight his personality and cognitive strengths is that he literally sits before the open with his trading identity and reminds himself what he's good at before each open tag and measure your trades keep score so did a video outlining how to keep trading stats to find your niche which you can find on YouTube crease your risk on setups that measure well in real time and doing what we do best makes us the best version of who we are so think about that how were you successful in the past what did that look like how can you apply that to trading you know and a great example of that is and I chuckle looking at this this is swang this is swine getting his first black shirt and like shark in March he earned enough just in that month to earn a black shirt you know he did over three and a half million dollars in trading P&L for the month of March and one month and it wasn't that long ago actually where he so I had been a incredibly consistent trader for a long period of time and just his numbers were just incredibly consistent able to make a lot of P&L but day in and day out week in week out month in a month just always pretty consistent very little draw downs but there was one period of time where he did have a drawdown and I remember him bringing in his statistics for the month to a monthly review session with his team dr. Steinberg or myself and our floor manager and he had experienced the period of drawdown I think the first one that I remember since he started eight nine years ago and we looked at his stats and you know dr. Stein Barger type of stats and said I'm seeing the problem and he said don't let your swing trading get in the way of your swang trading and what this great active trader was doing was he was taking too many trades on longer time frames that were not his niche there outside what he does best and this elite Raider having him do something that he wasn't best at not only diminished his results but turned his results incredibly positive results to a drawdown to losing money by just by making too many swing trades for somebody that's that's more of a very active trader that's how important trading to your niche is that's so important I mean if it's that important for swang somebody who made three and a half million dollars in trading profits in march somebody to prior that is on multiple years earned a black shirt for his trading profits if it's that important to him one of the best active traders in the US and by the way one of the most polite traders you'll ever meet what does that mean for you if you're trading you're the wrong niche you're not trading a niche that's best for you what do you think that means for you look what it means for him the good fail and look I think this is important in your journey to be a consistently profitable trader it's not just gonna be all winds and smelling the roses shark at one point before becoming a green shirt trader lost three hundred fifty thousand plus dollars and one after-hours trading KBI oh okay he remembers that as three hundred fifty thousand dollars I remember it is four hundred thousand dollars will let him well we'll go with his results and you know that's that's that's an opportunity to get better but that's a big hit and so that's going to happen and a great lesson that I could teach to you guys relates to me working out and so I go to the gym twice a week I used to before the coronavirus fears but I would go twice a week to the gym after work and work out with my trainer and we do a lot of deadlifts I sit a lot he wants me to be flexible and strong in my hips and so we do a lot of tons and tons of deadlifts and I'd never done a deadlift before working out with my trainer ever I've never done one I've been a former athlete had no idea how to do on it so I had to learn from scratch and I love learning things and adding stuff to my repertoire and so I had to learn proper form I had to learn how to get over the bar hold the bar get in the right position do it the right way so that I could be able to one day lift heavy weights and so I was uncomfortable at the beginning getting over the bar the right way and getting in the right position and yeah but but but slowly I started learning slowly my form started getting better and I would add weight trainer would add weight felt good about myself kept increasing the weight kept getting better until at one point I had a ceiling I just couldn't get past this one particular barrier and so you know I I said to myself let me let me sort of think about this and I trainer and I the way that we work after every lift we talk about each left and so I do the left and he'll give me some feedback I'll give him some feedback were like a golfer and a caddie working with each other and you know so I really had in my head I gotta figure out how to get through this one particular weight and my trainer and I came up with a plan and we said look get over the bar get in apposition get in a safe position and pull as hard as you can and if it comes up it comes up and so I'm like all right and I kept working on my firm my form building my confidence so one day I really think I'm gonna do it I get over the bar you know we're at my max weight get in a safe position and I pull and I pull I pull with all my might and get it off the floor a little bit and I'm pulling it up I drop it to the floor it was just too heavy my trainers looking at me waiting for me to give my feedback I'm collecting my thoughts I looked at him and I said that was a good fail that Sal gave me the confidence that I knew was going to help me to break through this barrier because when I dropped that way to the floor nothing hurt my back didn't hurt my knees didn't hurt I was safe I was at full exertion and nothing bad happened and I relate this to having a strong foundation being a good risk/reward trader and pushing your size when you can get to the point where you see a trade you really love you know what's one of your a plus setups and you put on your max risk for it the the risk that you know that you can you can take on a particular trade which should be a percentage of your overall bank so if you're a swing trader you never really want to lose two to five percent more than two to five percent of your bank of your buying power of the money you've got up at a firm or your trading personally if you're an intraday trader you always have a intraday stop-loss so let's say I'm not going to lose more than $5,000 I'm let's say I'm not gonna lose more than $1,000 in a particular trade if you find one your A+ trades you might say I'm gonna risk 50% of that thousand dollars on an A+ trade and you put on the risk and if that trade doesn't work out you've only lost 500 bucks your accounts fine no worries okay you can still go from there that's an important thing and and so you know fast-forward a little bit a couple weeks later kept working at it forms getting better got over that bar got in a safe position and I pulled and I pulled and I pulled and I got that wait up I succeeded getting that lift I broke that barrier I dropped the way to the ground I gave my trainer a fist bump this was of course before social distancing where we could actually do fist bumps and give each other high-fives got a drink of water came back and my trainer of course is waiting for me doing what he should be doing as a trainer which is asking the question heavier you got more I looked at him and I said I do and we put more weight on the bar I got in a safe position I got over the bar I pulled I pulled and I pulled with everything I had and the veins in my neck were popping out and I got that weight up again for a second personal best in one session dropped the way to the floor gave my trainer a fist bump and and had a new record but that's what you can do when you have good form in place and you want to size up as you can exert yourself as long as you have your risk guidelines in place you can fail but then from there take it further and get to that next step in your trading because you know nothing really Bad's gonna happen you can put on your max risk in a position thousand dollars of intraday risk I'm gonna give at $500 worth of risk I'm gonna put on $500 there's a risk I lose fine if you keep doing that over and over and over again inevitably you're gonna have that trade where you make more than you ever did you're gonna make $3,000 that's gonna be the new high for you with your trading that's gonna push you to see yourself as a different trader and be at a different pedestal overall in your career so one of the things that I see that's very different between professional traders and retail traders and independent traders is I call it just I call it just just just you need real edge in trading and you can't just have 20 habits do them every day and without real edge think that you know you're gonna make a lot of money you need real edge what I see with retail in the penetrators is they just make a technical trade or they just make a fundamental trade or they just they look for a setup okay well professional traders do is they put a bunch of variables together all right and that helps them to make really good trades how do I build a consistent trading business you want things to be scalable repeatable identifiable you wanna be able to control your risk put on substantial size put on real risk you want to save your risk for a plus trades let me show you a playbook example you'll learn actually how to make a playbook trade by me work working through this example but the key is notice how we put multiple variables together to make a professional trade this is the difference between what retail and independent traders do deletes their underperformance or the gap in performance between them and a professional trader and what pros do so let's talk about the playbook playbook is comprised of the big picture a news catalyst longer term technical short term technicals reading the tape intuition intuition we're putting together multiple variables to make an a-plus trade we're not just making a technical trade the bigger picture for this particular trade SP is at the top of its range following both European and Asian markets to the upside and extending the strong gains from Friday amid positive comments from President Trump and other officials on trade talks along with a move by China on this particular day over the weekend to lower borrowing costs for companies and also reports the Germany they'd also be considering a stimulus measures president Trump played down recession over the weekend while his top economic adviser Larry Kudlow predicted a strong second half performance for the US so that's our big picture what's the overall market doing where our resistance and support levels in the overall market we are in a strong up trending market where what kind of market are we in overall the bigger picture for weebo stock symbol WB it's beaten down on the daily chart it's consolidating a three-year lows before today's earnings report so we've got a stock that's sold off from the high 70s all the way into the 30s where has this stock come from prior to that it was a hundred and forty dollar stocks will come off a ton intraday fundamentals we Bo's a Chinese micro blogging website it's one of the biggest social media platforms in China Weibo reports earnings of 68 cents per share on revenue of about a half a billion dollars for q3 Weibo estimates revenue to increase six to nine percent that's above Wall Street estimates of a five percent increase to four hundred eighty five million here's the key monthly active users were four hundred eighty six million in June 2019 a net addition of approximately 55 million users year of a year what that means is the product that they sell is in higher demand what they sell is more attractive to the marketplace the street loves this the street loves when a company makes a product that people are using more and there's more demand for volume 7.35 million arvo 5.5 that's relative volume go to our YouTube channel SME capital to learn more about how we use our bow ATR 1.6 short interest really high 66.7% that means there's gonna be lots of natural buyers as shorts may need to cover because we now have this really positive news catalyst behind this particular name their monthly active users are up a ton their business is doing a lot better than the street expected and that they've been doing prior this is a really positive news catalyst are the float at 17 million want to know the details that go into what is important to make a trade decision alright we both pre market two minute chart we've got a nice level here at forty fifty as these pre market highs and a little resistance right there we're going to note that level as whether or not it's above there or below there or thinking about trading it and then our trade management alright Tier one we're long tier 1 when we bow makes a higher low and reclaims view up after making a 180 our move to the upside and testing pre market highs so we're gonna risk half to the Wicklow and low of day okay so we're Tier one tier two long tier two after WB we bow test the pre market and holds view up a third time risk previous higher low we can now see the wedge forming on multiple timeframes trade management Tier three the wedge breaks to the upside holds the pre-market high and consolidates so we're going to add Tier three risking to Viwa all right Tier four we bow breaks above the high the day the 41 higher timeframe technical level and holds and your final lot you're now in a position of strength and have a good average so we're adding as this trade is working for us the price action is working together we really like to use view op we like to buy stocks that are above you up you don't like to risk a lot when stocks or below view up again remember our Ville is pretty high in this as well indicating the stock is really in play when when when I when a stock is holding consistently above you up it means big money managers really want to buy the stock great indicator for you guys to use all right multiple time frame wedge one minute 5 minute 15 minute all in a really tight consolidation wedge this is one of the best technical patterns that we can teach you for active trading why do we want to look at multiple time frames because lots of different traders look at multiple time frames some traders like to look at one minute some traders like to look at 5 minutes some traders like to look at 15 minutes when the wedge is breaking above people are looking at 1 minute and traders who are looking at 5 minute and traders are looking at 15 minutes that means you've got three distinct segments of the population who used technicals who are all seeing a buy signal it means more players are jumping in on the long side as this is breaking out of a wedge trade management part - all right so how are we going to get out of our winning position the stock the stock fails from 42 and retests so tier 1 into 42 so we can't really get above it a couple of different times so we're gonna lighten up a little bit all right WB fails into 40 to 50 that makes a lower high so we're gonna sell tier two sidenote now that we have confirmation or traders working we should adjust our stops I set my stops for one half below view up and one half at 41 which is our support technical level and then WB fails to get over 90 cents and tests 43 so we're gonna sell tier 3 and hold the remainder to the clothes for momentum trade you could also hold the remaining shares for a two-day continuation swing trade all right so we're using our reasons to exit in this particular time period now notice there were variables in our favour we had a beaten-down stock news catalyst hi shorty interest elevated arbol holding above view op consolidating above booyah breaks out of a bullish web pattern high a day's news catalyst we're not just making a technical trade we're not just making a fundamental trade we're putting variables together to make a professional trade that's how we get these outsized risk reward traits putting multiple variables together to make an a-plus trade so elite active traders trade out their best when so I have the advantage of coaching really greatly traders outside of my firm we've developed a tremendous amount of the lead active traders inside of our firm we've watched them from college all the way up to being star traders there are commonalities as to when they're trading well and when they're underperforming and believe me elite traders underperform at times and they need coaching and mentoring to get back on track and if they do you should expect out of yourself to the commonalities when they're trading at their best is when they develop a thesis but they don't just trade the thesis they also look for a setup in their playbook and they see it and they fight for price that equals one good trade so they find a set up in their playbook we talked about niche they're searching for setups that are part of their niche what makes them great they spot that they see it there's confirmation from the price action and the volume that their thesis is correct it's being confirmed by other market participants they fight for price if the entry is thirty they're getting in really really close to 30 they're not sloppy with their execution entries because that messes up their whole risk reward when they're doing all four of those things that's when they're making good trades that's when they're trading at their best when they're not when they just trade their thesis I think Tesla's should go down they trade really poorly I think oil should bounce they trade really poorly I think this market has no chance to go up from the bottom and should break through new lows on the S&P that's when they traded their worst a game of no regrets so I want to leave you with a really great podcast that you all might check out and it's a podcast that was done by Peter T as a doctor in the US with a colleague of his Rick Elias who's an entrepreneur and so Peter had Rick on a show and asked him about an experience that he had in his life that was life-changing and so rec was one of the people on a very famous us flight and it was a flight that took off from New York City and was to head to Charlotte that was flown by captain Sullenberger and that landed in the Hudson River and Rick is sitting in first class and they take off and pretty early into the flight he hears this huge sound like an explosion and he's not really sure what it is that it just sounds like something exploded and he looks the stewardess whose diagonal from him and that stewardess is perfectly calm and so he just figures something happened and he feels that the plane turning around feels like a you know I guess we're just gonna turn around and go back to where we took off from no big deal here and you know they start to descend a little bit and start to descend pretty fast and it doesn't feel right and he looks at the stewardess and the stewardess has sheer terror now on her face and at this moment he knows and for the next 90 seconds he knows he's certain to die and what he experiences in those 90 seconds is completely different than what he thought he would experience well you might think you would experience what I thought he would experience and teaches us a great lesson you would think that during those 90 seconds when he was certain he was going to die that he would be incredibly scared it was asked about this and he said that wasn't really what I was thinking about I wasn't really scared he said I was profoundly sad I was profoundly sad thinking about things that I wanted to do that I should have done that I hadn't I was profoundly sad with regret about certain things that I had done the plan the plane is descending and miraculously it lands on top of the Hudson River and everybody survives and from this experience Rick says that here in this incredible gift that he earned the gift of not really just life but how important is and how it crystallized to him that he was playing a game and that there was a game to play going forward that was a game of no regrets and so look if trading is something that you really want to become good at trading something that's important to you it's got to be a game of no regrets hey go ahead and click our subscribe button so you don't miss any of the videos they were producing for you in the trading community and please take the time to add your feedback in the comment section for what videos you'd like for us to produce next and what you found helpful from this video from all of us at SMB train and trade well

Channel: SMB Capital

Views: 94,211

Rating: 4.8939929 out of 5

Keywords: profitable trader, make money trading, trading stock, trading stocks, day trading, stock market, stocks, how to make money trading stocks

Id: 82WCGwTGLHM

Length: 60min 43sec (3643 seconds)

Published: Fri Apr 24 2020