The Man Who Creates Millionaires

and so i just started that i just one day just you know said hey let me start a firm and we're going to focus on developing traders and we're still known for that let me just develop traders from scratch build them into consistently profitable traders through our training program and see what happens welcome back everyone to be the trader today i have a very very special episode for all of you and i'm really excited to be here i'm in new york city meeting with the one the only mike bella and the author of one good trade unless you've read that book if you haven't you need to go pick up that book right away but bella welcome to the show my man thanks for thanks for coming in absolutely absolutely i'm so excited to be here for all of you who don't know you guys have an amazing channel yourself smb capital and that's what really inspired me to provide really quality content because like you guys provide quality content and at the time there was a lot of quality out there and i was like man i gotta find something to learn and watching you guys really really helped me and just like how you guys think and so forth yeah it's it's pretty cool how many people get to know us now from the youtube channel we do some stuff to promote ourselves we're always looking for talent yeah looking for the next great trader on the street uh so we a big part of what we do here is to be sharing with the trading community in the hopes that we find that you know next great trader who walk in our doors inspire that next great trader to walk in our doors um but it's it's pretty neat i'm sure you you deal with that where people are coming up to you and saying hey i know you oh yeah maybe no it does happen the weirdest thing is when people come up to me on the streets in new york city and i'm with my son oh and they're like dad why did that guy come up to you you know he has no idea what i do yeah that's awesome well before we get into like what's happening right now around around you trading and so forth i personally and be a little selfish here i want to know what got this all started like what got you into trading because i need to know that so i was in law school and i recognized in my third year law school that i really didn't want to be a lawyer and that i was really not going to be a very good lawyer so i shouldn't do that and i had a friend from home my best friend from home is steve spencer he's my partner here and steve spencer had he was in law school as well and he got into day trading he got into this thing called day trading which was super new back at the time while in school he was in law school and steve's friend from wharton got him into day trading into short-term trading active trading and so steve while in law school started trading at a day trading firm called day tech and i didn't want to be a lawyer and i knew that the two of them i knew steve and jared cabin they're actually both partners that has to be capital right now and so i was in new york at a party and the two of them kind of cornered me and said hey you know why don't you think about coming to our trading firm and and working with us and jared at the time was kind of running the firm was was kind of the head trader at the firm and they were doing really well like unbelievably well like disgustingly well yeah and uh and so i i was like that sounds pretty cool of course i'd never wanted to i never planned to be a trader i never planned to live in new york city i'm from the suburbs in long island you know i sometimes i walk around the city i'm like you know how did i end up here and uh so there was no grand plan for that um and so i started trading at daytech and what year was this 97 okay 1997. so like i was 10 years old yeah okay i was i was uh let's say about that no it's fine but i like to tease but go ahead so like in 97 you started trading yeah what was it like for you was it just like you were just right off the gate like killing it or how was it for you yeah so uh you won't remember this because you're 10. yeah 97 there was the asian financial crisis okay and so the markets were they kind of blew up in 97 and our firm at the time had done super well prior to that and at the be right when i started it was the first time they started cutting back because the market had changed and guys weren't doing as well yeah and guys were losing some money at the firm and so no i didn't start out crushing it in the first nine months the market was really hard at that time and but you know about nine months in we ran into uh a pretty good market again the the tech stocks were really strong and figured some things out and started making money and uh then ran into ran into the the internet bubble so so did you just that was that was fortunate yeah hey we wouldn't be able to do these face-to-face interviews if it wasn't for our sponsor cobra trading so if you can just give them a few seconds of your time we'd really appreciate it cobra trading is the go-to broker for day traders and short sellers and i'm not the only one saying this in fact benzinga awarded cobra trading as the go-to broker for short selling they have a heavy focus on direct market access order routing so you have the fastest execution they have some of the best locate prices and availability they also have amazing customer service i've experienced many different brokers and it's why i use them every single day and why i'm proud to have them as our sponsor sign up now by clicking the be the trader referral link below and earn one free month of software with cobra and 25 off all commissions now let's get back to the show did you come in like and then said i'm like a partner and then grew with it or did you just trade first and then kind of grow into let's become smb yeah so i traded for traded a firm for you know a while i traded for different firms okay for a while and i got to the point where i wanted to do something different than just trade i'd just been a trader just like everybody else out there i was just a trader just making a living off of trading i was actually trading my own money uh that's how you did it back then oh and uh i would trade my home so i worked at a firm and then if you made enough money you traded your own account you traded your own money and so i did that pretty quickly i was trading my own money and then i just wanted to do something different and i wanted a new challenge and i wanted to use my skills we all have different strengths and i wanted to use i wasn't using some of my strengths i wasn't using i went to law school and so you develop some some strengths when you do that but i wasn't using all of my strengths as a trader i don't think i was tapping into the things that i'm best at as a trader yeah and so at the time also the market was pretty difficult i saw this opportunity to train traders from scratch i saw that there was a need in the trading community to do this yeah hey you're new you don't know anything how do you go about it the best way and so i wasn't seeing firms bringing people in and training them really well and giving them the education and and the best path to becoming successful that could be created and i saw all these people who wanted to trade right and the opportunities were opening up it was getting easier to start trading to open up accounts and start trading and it was easier to trade also because the connectivity got better so more people could trade from more different places more people wanted to trade but there just wasn't a good way to start that i saw and so i sat around i was like you know if you could create a really great way to help people to start you could create a really great training path for people you could build a business yep and so i just started that i just one day just you know said hey let me start a firm and we're going to focus on developing traders and we're still known for that let me just develop traders from scratch build them into consistently profitable traders through our training program and see what happens i want to dive into that that was 2005. 2005. so i want to dive into that in just a second but you said a couple of things in that in that whole explanation and one of those things was i wasn't using my strengths as a trader yeah there were some strains on words not using what were those strengths per se i don't so my strengths are not as just solely as a trader yeah um yeah i am not the best trader in the world and uh you know i was a professional trader for a long period of time and that's how i i paid the bills and did stuff but i think my true strengths are in leadership in teaching and training that that is where i think i have the most to offer so that's that that that's why i sort of leaned on that that makes sense and you also said that it was rough at first because of the market right and then you got you just kind of got your footing and it started to pick up again because the market started to change after the asian crisis i believe where the markets fell was there anything that stood out to you before s b and in between there that was your biggest struggle to whether it's after you got consistent and there was something you had to overcome to like go to that next level or maybe before you got consistent that was holding you back was there anything that you can remember that was hard for you because everyone's different right yeah um the market changed a couple of times when i first started trading i mean the hardest thing was after the internet bubble bursted the markets were terrible and so we talk a lot at smb about having diverse playbook and figuring out different ways to trade i mean i don't know that i would have an answer if we were running smb as to how to make money in 2002 trading markets i mean those markets didn't move they're they're they were terrible and so the hardest part of my trading career was just trading a market that just didn't move so there was the bottoming action in nasdaq but there wasn't really a lot of follow-through um that was that was the biggest thing when it comes to that like when the market's just constantly changing you've been through a lot of different markets have you found in your in your opinion your perspective that patterns that or setups or strategies that didn't work maybe in 2002 are now working now and vice versa like they just come and go or do you feel like they're always there it's just they kind of change in their nuances and maybe the risk reward just changes as well a little bit yeah so when we first started smb you tell people how to momentum tray look for things that are oversold and scalp them look for things that are overbought and scalp them look for things breaking out of ranges and scalp them momentum trade and then there was a period of time where we needed to adapt because that wasn't working as well okay and we adapted and then there's been some some different markets we've seen uh since then but just just the recent in 2020 and 2021 there are traders at our firm who made millions of dollars yes who bought poland's and in strong stocks and then sold them into strength that was a strategy strategy that worked over and over and over again you know buy buy stocks into poland areas pull and support areas and then sell them into strength that worked and worked and worked and worked and over the last couple of months that trade completely has not worked particularly in the growth stocks and some of those traders have drawn down and we've been going to traders and saying the market has changed we're seeing a different market right now than in 20 and 21 that pulling trade is not going to work as well yep the momentum breakout trade is not going to work as well we have to adapt and the way that we are asking our guys to adapt is to do more momentum trading it's it's like old school smb going back to a style of trading that worked great in 2008 that worked great in 2009 that worked great when i was a trader back in 99 and 2000 that style worked super well taking each day as it comes doing lots more intraday active trading doing a lot less overnights because guys when the market was really strong and as they evolved and they became bigger traders and they expanded their playbook they evolved from just intraday trading strong names to swinging them and swinging them with options and hedging and and those strategies have stopped working the last two months and and so that's what we're talking about internally here you know a couple thursdays ago we had a big meeting with dr steenberger and all the guys and all our senior traders after the close and we're saying like look we've been saying this for two weeks the market's changing but like now you really got to change okay and here's here are the strategies you need to be deploying so right now at this moment in time we are going back to a lot of s b old school stuff i love that and right now just for you all to know it's february 2022 just in case you're like watching us in the future and you want to know what time we're in right now but you said something about adapting how you guys will notice a change and kind of go to your team and my question about that is this how long does it take you like are you guys analyzing your teams like once a week to kind of say okay the market is changing now let's start adapting right away or are you kind of giving it like a month or after like two three trades that don't work are you like how are you kind of analyzing it's time to change now versus let's keep our finger on the pulse we might need to change does that make sense yeah i mean i think after three trading sessions yeah as an active trader if you notice people were consistently making money and now they're at the bottom of the leaderboard uh getting stopped out hitting their daily stop loss that catches your attention right and you'll you'll you'll first start and send them a cheat chat and say hey how you doing uh how you feeling you know are you okay are you down and just sort of do a temperature check how are they doing psychologically is there is there something i don't know about what's going on in their life that's causing this clear under performance right and okay so we'll just do a check in and then a couple more days go by and stuff's coming up okay maybe now we need to think about edge yes and so we'll reach out and be like you know how are you feeling about your strategies do you need to make some changes do we need to talk about risk and and so we'll have those conversations um and we keep having them i i think you know it's interesting i know that everybody thinks like we've done unbelievably well the last two years i mean i'm humbled by our success i'm grateful for the last two years i mean it has been amazing our traders have killed it you guys here have made more money than they can ever spent uh in their lifetimes and so eternally grateful for that and and developing traders have just hit levels that are just incredible to watch i mean so fun to watch these guys uh it's just great i mean just life-changing last couple of years and so having said that it's not always like that okay this job is that's not all of those days yes and the last couple of months in full transparency there are three or four guys at the firm who have made millions of dollars over the last couple of years and who i think in 10 years are going to be stars i mean stars and i think you know true leaders at the firm but they are in drawdowns and we've got both hands on the wheel trying to help them get through this changing market and i'm worried about them yes um i'm really worried about them to the point where like i i think about it all the time how can i help these guys to get through this period so that they get to experience them being stars in in 10 years like i i view this as if we can get them through this period these people these guys are they're just going to be rich like if you can be at this firm for 10 years and you can get through the hard times and you're a pretty good trader you're going to be rich yeah that's what's going to happen and but now it's like i could see them not making it i don't think that's going to happen absolutely but i it might not yes and i do think if we if we didn't offer the resources that we have at the firm like the world's greatest trading coach in dr brett steenbacher like senior traders who are just phenomenal like the technology like the the the capital to be able to draw down like these guys have done that they they might not be trading anymore so they might become guys who had a taste of success who didn't make it versus what what i think they will become which is very successful sustaining longer term rich yes traders and rich is financially i get it rich doesn't necessarily mean financially well um so yeah those are the things we're dealing with right now i like that she's you you went to a moment in that conversation about if someone's going through a moment of difficulty that you first have a conversation with them just see make sure there's something that you may not be aware of maybe outside of trading can you talk to that how important it is to to kind of make sure you're outside doesn't how it can and possibly impact your the inside of your trading yeah so i'll give you a perfect example so we've got a guy at the firm who's 5 million a year trader who wants to be even better and underperforming turns out having sleep issues and so dr steen barger is going to have a conversation with him and i'm going to have a conversation with him and we're going to figure out we're going to learn oh he's having sleep issues he can't make a lot of money trading if you're having sleep issues yes if you're sleeping like two hours a night well that explains why you're underperforming yeah and you know so if you just get on the phone and and start yelling at the guy without trying to figure out what's going on that's pretty bad leadership that's pretty bad coaching so you just ask and talk and listen you just listen and that's really probably the most important thing to do if you're going to be a good coach if you're going to be a good dad by the way um you just gotta listen yes no judgment and so we we listen and uh so dr steenbarger gives the the traitor a referral to a place where he can get some help yes trader goes in and gets tested and you know goes to a sleep clinic and gets that turned around and that trader is now on the other end of that and he's coming back to the top of the leaderboard again we had another uh eight figure trader same thing sleep issues underperforming let's have a talk what's going on and and we learn those things and you you also said that because you take your time you approach him as a coach you approach them and make sure you know what what's going on in here first and then like what's going on how are you feeling with the risk management how you feeling about your actual trade so forth whereas and you also mentioned that the traders who had like a good run sometimes they could hit a difficult spot and without that extra support it could be difficult to you know to last so for the traders who are watching this who who don't have the extra support who don't have bella and their corner right or dr steenbarker or stephen and so forth if they don't have those people any any advice for those traders who might have had a killer 2020 right it was it was a different market as you mentioned and maybe 2021 was continuation for them but then 2022 january is a whole different market and so maybe they're struggling right now like any advice for them on how to not be that trader who's just like one and done you know like in two good years and then done for the rest yeah i'll just take a half a step back if you want to be successful you need to be thinking about building a board that an advisory board for yourself you're a trader you're running a business okay that business is a lucrative potentially lucrative business you need to have a board that that sits above you that helps you to run your business you need to have maybe you need to have a trainer who you really rely on i i have a trainer one of the best things that the physical trainer physical training okay gotcha one of the best things that that that i've done is hire a trainer and yesterday we had a training session and we were talking about my kids and like he just has such great insight on on so many cool things like i i view him as somebody who's on my board who's keeping me fit and who i can just talk to in confidence who really provides a lot of value in my life you know you want to think about do you need and not everybody needs this but do you need a behavioral yes coach is there someone you just need to talk to i know an elite trader who regularly talks to a behavioral therapist and there's nothing wrong with this person at all he's trying to be an elite performer he's trying to get better and so he he he has conversations with that particular person you want to have people around you who are pushing themselves to be better you know so i want to get in my inbox recommendations on really cool podcasts that i ought to be listening to i want to get in my inbox from my board books that i should be reading that i'll really enjoy um and i think i sit on the board of some elite traders as well i read a book uh recently rich roll wrote a book about ultra endurance running i recommended this book to a particular trader and the trader was like so thankful that i had introduced him to this trade to this to his book because he got a lot out of it so you want to be you want to have a circle of people that are suggesting ways for you to improve as a person yeah in lots of different areas man i love it you said that because it just makes me think about who's on my board right now yeah it makes me think of like how important that is and you're just putting in perspective for so many traders out there who and i'm myself included especially in the first three years i'm not see as a business like i was just like let me try to make as much money as i can right but that perspective is huge and not only are you thinking about it as a business but now you took a step further and like most businesses you have a board and i love what you said so thanks for sharing that now i want to ask you something about one good trade because i think that's a great book and that book itself like i just love how it really focuses on wipe the slate clean there's always another trade you keep going yeah but there's one thing to say we got to get you guys to get a shot of the mural out there one good trade yes we do we definitely see when you walk in yeah we'll definitely get a shot of that and you'll see it the way we're posted up on here while we're talking but i'm very curious there's a lot of trades out there who know that it's just one good chair like i need i know my setup bella right i know my setup and i'm good at it but i tend to have these habits where i just you know trade other stuff i'm sure you'll deal with that every day how do you manage whatever happens yeah so how do you manage that because someone else has to manage it themselves because of their own manager whereas you guys have teams right yeah so how do y'all go through that process so you know one of the things you guys do is they do a monthly review at the end of the month yeah one of the things that guys do is they do a daily review and so at the end of the day you're going to tag your trades and you're going to put them into trader view yep so this was a breakout trade how'd i do this is the breaking news trade how did i do this is a mean reversion trade how did i do uh this is a bounce trade but you know what it wasn't a bounce trade it was a it was a trade where i thought the stock was down too much in my infinite wisdom i just decided that i was the smartest person on the street and you know this stock has gone down too much and there's no evidence that it's going to go back up other than i think it's gone down too much therefore i need to buy it and you know that's not a trade that works well you know that when you go back and review your day you know you say to yourself look i need to eliminate that particular trade um and so we're tracking and tagging the trades that we're making yes and we're reviewing that on a daily and a monthly basis we just had a monthly review session at eight o'clock in the morning with one of our better teams and they were buying uh stocks that were they were that they thought were bounce trades gotcha and they were losing money and they were just making trades that were not bounce trades bounce trade is there are variables that you can identify as to a signal in a stock that it will go back up there's it's a signal that you can see you can see it there's another mural on here on the floor that says if you see it swing the bat hard the mural doesn't say if you don't see it and you just decided that something should go back up swinging a bad heart that's not a trade yes that's just something you got to eliminate so you know we talked through the month with these guys and we you know we said that's why you underperformed that's why i didn't do as well as you could because you thought you're taking bounce trades but you weren't you were just taking made up i think the stock should go back up trades and i think the overall the thing i'm beginning here is like you just got to be very realistic because you guys have helped right you guys are talking to each other and saying like hey that's not really a bounce trade you can check each other yeah right whereas i think really traders out there should be checking themselves and making sure they document everything just like you're saying on trader view and making sure like is this really this or is this me getting emotional and what have you when i say i'm just gonna throw a couple words up and whatever comes to mind just just bring you know whatever you want to talk about but i'm very curious the word confirmation yeah what comes to mind when i bring up that word you're waiting for the order flow to show you that your trade thesis is correct so you may decide i think that tesla should go up man they got great cars i think you should go up elon musk is the best i think it should go up from this price down too much i think it's going to go up okay that's a thesis and you may say well i think it's going to go up because they have good earnings i think it's going to go up because it looks like they're getting more orders doesn't matter then you actually see the price the order flow confirm that your thesis is actually correct we see on our desk that the very best trading is done when a thesis developed by a traitor is confirmed by price we we say see it that's what we mean when we say see it it means the price action has confirmed that your thesis is correct other people are voting in the marketplace and they are agreeing with you that tesla should go back up that's why it's holding above you up that's why arvo on the day is particularly high that's why the damn bids aren't dropping at a at a level above you up that's way when it starts to go up it goes up a lot higher today a lot quicker than it does in other days that's what we mean by confirmation what about risk so you know at a prop firm and i'll circle back to sure a topic we alluded to before so we think about risk differently at a prop firm we're not here to make a little bit of money if you want to make a little bit of money you don't come here that's not what we're about you know we're here to help people become seven figure traders we're help we're here to help seven figure traders become eight figure traders we're here for people to to to really do as well as they could be find out how good you can be that's what smb is about we want elite performers who want to just be the best whatever that number is if your best is 20 million then come here and let's start working on it if it's 5 million then come here let's start working on it we're not here for a little bit of money and so to do that you need to think about risk differently than i think an independent or retail trader does it is super important and you can't keep your seat here if when you see confirmation for your a plus trades that you put on a little bit of risk you can't stay here and do that you have to swing the bat hard when you confirm when you see a confirmation an a plus trade you have to put on max risk and you have to get to that point now having said that i think we also think about risk maybe differently than independent and retail traders and that we're we're measuring what we're good at we're not putting on risk for trades that we haven't measured that we actually have an edge in and we know what edges we have in marketplace we we give them names each of them is different for each trader but the traders truly do know they don't kind of just think that i have a edge in a particular trade they've made that trade before they've measured it they've tagged it they can give me the stats they can tell me what the win rate and then that trade is they can tell me what the risk adjuster returns are for that trade they know it and only from those trades are we building on risk i think the independent retail trader maybe takes trades they're not sure if they have edge in and they're putting on a lot of risk and trades they don't have edge in speaking of that speaking of whenever you see something i like that you said when you see something you get that confirmation then you need to hit it up and swing swing the bat right and hit it with your size because if not i mean then you're just gonna waste your time here is there setups where i'm just curious in your opinion on this there's there's there's different notions out there right in twitter sphere right everyone's always like hit everything with the same size every trade uh dessert like that has different risk elements like this one i can risk a thousand dollars that's when i can risk 100 you know like whatever it may be right just curious like how what's your take on that like are you only swinging with the same size you know same risk level same risk dollar i don't know how you guys view it but risk dollar wise per trade like a 1r kind of deal or is it more of these trades i'm risking you know 100 grand these trends i'm risking 10 grand you know like are you thinking like that absolutely not we are absolutely not putting on the same risk for each trade and look there's different ways to make money in markets excuse me so if you are a systematic trader if you are an automated trader that might be the way to go if you are a discretionary trader one of the huge advantages that a great elite discretionary trader has is that they know the times when they're more likely to be right and they know the times where their risk reward is skewed is asymmetrical to their favor and so when you're in one of those moments where the odds are on your side and the risk reward is asymmetrical the discretionary elite trader knows that they have to if they want to be as good as they can be they have to put on max risk for that particular setup now and when i say max risk that means a percentage of their daily stop or a set amount per trade speaking of daily stop like do y'all is a daily stop just like you say five percent of your account usually or whatever it may be and then when you when you answer that my next follow-up with that is what you just mentioned a trade is a risk full risk on is a percentage of that daily stop how do you determine that is just been i'm sure it depends on the level of the trader but let's say for more of a beginner trader in in the firm who just comes in yeah i mean a beginner trader might start with a daily stop loss of 500 a day okay an elite trader might have a daily stop of half a million dollars a day and honestly on a risk on day they can ask for more as long as they ask for more before the start a lead trader might ask for you know a million dollars for a particular setup um and so you know you start small obviously yes and the bigger guys have more and so they say serve 500 and you said risk on is a percentage of that yeah so so when you see a trade where you should swing the bat when you see an a plus yeah you swing the bat let's say you have a thousand dollars of risk intraday okay and let's say you're mostly intraday trading and let's say you're saying you see an a plus trade you want to get to the point where you're risking 30 percent of that thousand dollars on that a plus trade so it's a percentage of your stock gotcha and your stop do you guys visualize it as what will mentally just destroy a trader or do you visualize it as i can only have so many of these stops in a row where i'm eliminated like how do you visualize how do you determine what your stop is you earn it so you start at 500 is it 500 or a thousand these days you start at 500 and then every two weeks you're eligible for a bump so you're showing consistency you're bumping up a little bit you're showing consistency you're bumping up a little bit and you know it takes takes time but over time you can do you bump down to as well oh yeah okay can you can you speak about that because a lot of traders they'll they'll work their way up to a certain size but then when they're struggling they never work their way down can you explain how you all kind of go over that yeah so if you are drawing down and you're not doing well you will have your your risk cut and you should do that at home as well yeah you're not seeing the screens well you're not trading well the best thing to do when you're not doing well is let's just make things easy let's just slow down let's just get back to making money and the easiest way to do that is to trade smaller to trade with less size and just try and put a green day on the board but mike i mean every time i downsize i immediately agree the next day like then i'm getting frustrated because i would have had a really good day if i was just kept the size yeah what do you say to that guy um so i think that we don't see that here necessarily okay um we see that when markets adapt um but i hear it a lot so i was just curious not my sense for somebody like that yes is uh they are putting too much risk on for certain trades i mean you do have to sit down and say here are my very best a plus trades and i'm going to give them 30 of my intraday stop and you know here are my b trades and i'm going to give them 15 of my intraday stop and here are my fielder trades and give them 10 of my my stop i think when people are green green green what they do is they tend to put too much risk on for their feeler trades and that eats away and then and then they don't put enough risk on for their a plus trades i think when i hear that people don't really know what their a plus trades are you know we say their playbook's not quite worked out um and that's probably the reason so what has been something that has stood out to you over these years i've seen so many traders come go grow explode right all these different types of traders is there something that sticks out to you that's just like most of them all have to battle like like no matter who it is like there's maybe sure there's like a handful who don't but like for the most part most people have to battle this one thing to like really grow yeah i mean it's edge and so the the most important thing for a trader is to develop edge and so lots of times you hear younger guys on twitter talking about oh there's something wrong with me or you know i i can't do this or i can't do that there's something wrong with my psychology you know we find that what's probably wrong with them is they lack edge if you are losing money consistently and you're upset that's good you should be upset you know if you're losing money consistently and you're completely calm you're a psychopath okay that's that's not good yeah you should be upset if you're consistently losing money but what that should tell you is that you need to do something different you actually maybe need to go back on the demo and start to develop your edge but um yeah i mean that's the most important thing is is to develop your edge and it's different for different traders so just because you know shark is one of the great traders on the street and one of our top traders at the firm and he has a team of traders and so if you're a young guy and you get to be on his team you know you're like that's awesome like i get to trade under shark i get to see his positions in real time and you do you get to see his positions in real time i get to listen to him talking through his trades in real time i mean this star elite trader i get to i get to do all of this of course and you know if i have a question he'll answer it and i know exactly what his trade strategies are he talks about a backside trade is one of his favorite trades and he's going to like tell me he's in that trade and he's going to talk to me about that trade and i'm going to see his positions in real time well guess what i don't know anybody actually on his team who can trade like he does you know he has different risk levels he has a different risk tolerance uh he's able to give the trade two or three or four tries before he he gets it right um and so what those guys have to do is they have to you know better for them to understand how he's thinking through a trade and how he crafts a trait and what stocks he's looking at and how he works to get better to to let him role model you in that way as opposed to just flat out copying him which not everyone not everyone can do because you don't have the same risk profile as him right and i like it you said like they're watching him they're learning what he's doing but they don't trade like him right same talents as him like right shark has an incredible ability to watch he can trade 30 different names at the same time well i don't know anyone else at the firm who can actually do that he has just this unique cognitive ability to be able to take in all of that data at the same time while he's trading and swinging whereas your your talents may be more myopic you may be able to trade four stocks really really well on a shorter time frame than 30 stocks on a longer time time frame like him and so the super important thing when developing your edge is to develop it so that it maximizes your unique talents you know maybe you're a deep thinker that requires a certain amount of edge maybe you're a really fast thinker that requires certain strategies i like that you said that and and you went back to risk a couple of times and explained how shark has just a different mentality he can hold a bit longer and so forth that makes me think about the question of when you get a new trader any new triggers to come in here or it doesn't matter who do you have to work with them on how they view like losing or like how they view like money in general because like not everyone is they're not shark right away right they're not they're not having money he has he worked his way up right but i'm just saying like any traders who come in here who are like like you know i just lost 500 bucks today yeah i'm brand new trader like that's that's more than i made like for two weeks you know or three weeks at my old job so any challenge with that at all that you ever had to face with helping new traders yeah so if they lose too much money jeff has them do push-ups um so we a good way to do it is to think of in in ours yeah uh or yes or daily stops so you'll hear a lot of traders on the desk talk about how much did they make in a month of their daily stop so let's say their daily stop is six hundred thousand okay what was their p l based upon their daily stop you know or that so that's a that's a good way to not let money get in the way and and you also said something about how there there's there's something to be said about everyone is very unique and if you're if you are someone who's a deep thinker right you really want to you might want to find the edge for you so what about these traders who are always like hey i see bella and i know you don't do this but i'm just using it as an example maybe i do do it okay but like bella's posting that he's always trading x y z and i'm trying to do the same thing i like the way this looks and it's only it's a momo trade it's like intraday yeah but there's someone who who is a very deep thinker they take forever to make a decision like do you feel like that person should like definitely take his time and like wait and find a strategy that really melds well with him and maybe go to swing trading maybe go to something else or do you think a deep thinker can could also just day trade you know what i'm saying because there's deep thinkers that they take a while to make a decision okay i think they can and i don't think they should gotcha so our training is set up where we expose traders to different types of setups that work yeah for active traders and they're diverse and we say try em and then the ones that you're doing well on the ones you like do more of them and as you're going through our training program we ask you to choose a niche build your playbook we've given you all these setups to to look at build your niche build your playbook when we know that now let's have you interview for a team where people trade more like that let's try and put you on a team where there are more like-minded traders and we try and match people up and you go and you interview with a senior trader and if the senior trader thinks you can add value to their team then you join the team and you you get access to the swangs of the world and the sharks of the world but no i mean there there are traders i mean we have one traitor uh at our firm you know michael wilgus and uh he sends me what he's do i probably shouldn't admit this but like talk about a deep thinker uh he'll he'll he'll send me stuff about what he's doing his research is so in-depth i'm just like how does he have enough hours in the day to have really found that particular edge i mean the amount of diligence that he has gone through is just um extraordinary yeah um and he will find trades based on extreme research that i would never have the patience to do and i probably couldn't do it um but he has that background and that's what he's good at if if i were to say you've got a momentum trade he would be an accountant right now but if we let him take his skills and what he's good at he's a seven-figure trader i'll let you said that and before we start to wrap this up bella i just have one last question if you could give yourself advice yeah back when you first started trading yourself like in that year where it was it was not that easy at first because there's people who are starting in january 2022 and it's not that easy for them maybe what would you tell yourself don't be a lawyer okay okay but what about like in terms of to help you get here quicker to smb into creating your own your own business to helping you grow this and helping you help other charities fulfill your dream yeah this is a career this is you want to play the long game always it takes time and so our internship program if you are a college student and you really have a passion for trading you can apply for our internships very competitive but we want to hear from people who are in college who are trading who are passionate about trading and and jeff will probably talk some more about this and and when you apply um you you start as a junior intern you might be a sophomore in college you might be a freshman in college you're coming in and spending the summer with us as a junior intern and the best of the junior interns only the best of the junior interns get invited to come back as a senior intern and that's literally the next calendar school year they go back to school they go back to whatever they're doing they probably don't want to know what they're doing most of the time they're in college uh and then they come back uh they're connected they're still connected to the desk actually as senior interns maybe they come back in their their junior year and they're trading live and uh they're working with the team they're on a team they're working with the team and uh then we we're we're helping or we're coaching them and then only the top senior interns are offered a spot on the desk and then you start on the desk and you get paid and you're on a team and we're making sure you don't have to worry about the bills but there's a whole thought process that we're going into that this takes time you need to be trained really well we're playing the long game we're interested in building seven figure traders here are the things that go into that and it's it's i mean jeff and i talk every day uh about this about looking you know how do we train better and we have a whole team that helps us with this like how do we train better how do we teach people how to read the tape better how do we make our reading the tape program better how do we make our options training better we're working on a new options training program so we're spending a lot of time thinking about that because guys need lots of resources to be elite and we need to make sure that they have them awesome well look bella it's been such a pleasure for me to be here thank you so much for inviting me man and i appreciate it you got it when am i getting that shirt you're getting it soon all right goodness soon

Channel: B The Trader

Views: 184,096

Keywords: day trading for beginners, day trading strategies, learn to day trade, beginner trading stocks, how to trade penny stocks, how to trade penny stocks for beginners, how to make money trading stocks online, day trading tips, learn to trade penny stocks, learn to trade stocks, learn how to day trade penny stocks, bthetrader, b the trader, b the story, bthestory, Millionaire Traders, day traders, live day traders, stock traders, crypto traders, traders, live traders, traders live

Id: pqd7vO2WqfY

Length: 49min 29sec (2969 seconds)

Published: Mon Feb 14 2022