Managing Partner, SMB Capital
Record Date: 1/10/17
Today I had the chance to speak with a man who originally went to law school, and while there, he got introduced to trading & never looked back. After 10 years of trading he noticed that a lot of new traders were struggling to learn how to trade. He saw an opportunity in the space to develop traders in a more structured way. Seizing this opportunity, he & his partner created SMB Capital. His name is Mike Bellafiore.
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Today I spoke with Mike for an inside look at a successful Prop Shop. We discussed the intense training and mentoring their traders go through before they even begin to trade. Building a good routine in and out of the office, choosing the trading style that fits their personality, and developing the correct mindset before they begin to trade live money are just a few things we discussed.
Mike is one of those people that when he speaks, you listen. Hes a great guy who understands what it takes to help traders become successful.
- What a trader must go through before they begin to trade at SMB, and the process of finding their niche.
- Why fitting into their culture is the most important trait they look for.
- How important it is to learn from successful traders, but still identify and build on your own talents.
- The successes and failures of a developing a long-term trader.
- How one big move in the market can be traded many different ways.
- How has your trading evolved over the years?
- I used to be a momentum trader, and because of HFT’s, I have to wait for special opportunities to do that. Now I’m more of an intraday swing trader. Now I look at big picture, chart setups, and fundamentals.
- Can you tell me the moment that trading just clicked for you?
- I found opportunity in the semi-conductors and took advantage of it. It took me about a year, I was down 30k in my account.
- What’s the number 1 source you spend your time on?
- I look for stocks with unusually good news or bad news.
- Favorite Book About Trading:
- The Art of the Deal. Donald Trump.
- Trading in the Zone. Mark Douglas.
- Favorite Movie About Trading:
- Best Advice Ever Received About Trading:
- Steenbarger, “think about how you were successful previously? What was helpful in your previous success? Take those answers and apply it to your trading.”
- I started taking setups that mimicked other areas of success in my life.
- Advice to Give to Others About Trading:
- Go in with the proper mindset. Think long-term. Don’t go in trying to make 6 figures.
- “During the trader development, you’re looking to identify a niche that will emphasize your talents.” 10:00
- “You have to develop a daily routine and complete it each day…” 10:30
- “Understand that you get better as a trader from the work you put in after the market closes and before it opens…” 15:55
- “For trading, everyone can play in the professional league, that doesn’t mean you should, not everyone was made to play in the NFL…” 25:00