One Good Trade Inside the Highly Competitive World of Proprietary Trading

by Bellafiore, Mike

• ISBN13: 9780470529409
• ISBN10: 0470529407
• Edition: 1st
• Format: Hardcover
• Copyright: 2010-08-02
• Publisher: Wiley

Summary

An inside look at what it really takes to become a better traderA proprietary trading firm consists of a group of professionals who trade the capital of the firm. Their income is generated solely from trading the markets. The world of prop trading is mentally and emotionally exhausting, but the rewards can be substantial, if you understand how to identify good trades, take profits at the right time, and limit losses.In The Way of the Day Trader, author Mike Bellafiore describes the principles and techniques that have enabled him to trade this way for over ten years and explains how he has imparted those techniques to traders at the proprietary trading firm he co-founded. In doing so, he lifts the veil on the inner workings of his firm, shedding light on the challenges of prop trading and why traders succeed or fail. Emphasize the development of skills that are critical to success, such as risk control, consistency, and emotional control Outlines straightforward trading strategies, including breakouts from congestion, trading off support and resistance, and identifying consolidation set-ups Tells the stories of the traders the author has mentored and how his prop trading firm operatesBecoming a better trader takes discipline, consistency, and a simple set of strategies, and this book will show you how to develop all three.

Author Biography

MIKE BELLAFIORE is a cofounder of SMB Capital, a proprietary trading firm in New York City. He has had numerous trading articles published in SFO Magazine. SMB regularly appears on CNBC and TheStreet.com. SMB also hosts four trading shows a week on StockTwits TV, the first Web-native finance television network. Bellafiore's trading strategies have been featured in Brett Steenbarger's book, The Daily Trading Coach, and his trader training program was recently highlighted in Trader Monthly and on the TV documentary Wall Street Warriors. Bellafiore is a regular contributor to the SMB blog, which provides market stories and trading advice. He was a speaker at the 2009 Traders Expo in New York. Bellafiore is a graduate of the University of Connecticut School of Law and a former member of the University of Connecticut Board of Trustees.

Table of Contents

Preface	p. vii
Acknowledgments	p. xi
Inside a Prop Trading Firm	p. 1
These Guys are Good	p. 3
One Good Trade	p. 31
A Good Fit	p. 53
Tools of Success	p. 83
Pyramid of Success	p. 85
Why Traders Fail	p. 117
Live to Play Another Day	p. 141
Getting Technical	p. 163
Stocks in Play	p. 165
Reading the Tape	p. 193
Maximizing Your Profits with Scoring	p. 223
The Trader's Brain	p. 249
Trader Education	p. 251
The Best Teacher	p. 285
Adapt to the Markets	p. 305
The Successful Trader	p. 335
Bibliography	p. 339
About the Author	p. 347
Index	p. 349
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