I needed to hear this, just lost 22k the past week. Could not stick to my stop loss, was overemotional, tiered up, doubled down. I'll be back stronger and learn from my loss to become an amazing trader like the ones in your firm.
I hope its going well bro?? I've just experienced the same thing over the last 3 weeks, I'll be back and back stronger too ! Needed to see the encouragement
@@blacckz I came back from my loss and made it back after 3 months of careful trading. Ended up losing it all later as the market crashed and I got screwed over by margin and a “mentor”. Going to start law school in two weeks, having to play the long term game now and wait till I graduate in 3 years. When I get that lawyer $$ I’ll have enough disposable income to trade again. Enjoy the journey man it has its ups and downs but there’s no better high than being a successful trader.
I like so much how Mike continues to educate us. It's like we are part of his team. These 6 minutes bring us all more than 6 books about the same topic. Thank you SMB Capital, thank you Mike!
“One trade is not worth stopping yourself out for the day “ idk why as simple as that sounds it’s so crucial , and it’s easy for a trader to risk everything in one trade . He’s so right though there’s many opportunities
I want to know that sometimes stocks behave same makes specific patterns for around two month but what to do when they didnt behave like that? i know after that period this specific stock shouldn't be traded but after that what to do?
Mike. Is there a discussion about what percentage of daily acceptable risk/loss is appropriate to be used per trade? And obviously if there will be multiple positions that must be divided among them.
The free tutoring you're offering here is amazing. Appreciate that there are decent and genuine prop firms out there like yourselves. I will continue to watch with interest as I grow in my trading journey.
to me this is one of those videos I listen to at each trading session. The seriousness of Mike is what keeps me disciplined with my own account -- not a prop firm trader myself, but this is even valider and indipedent retail trader. thanks Mike!
advice and/or resources you could share (maybe sth. from Dr. S even) for retail trader to stick to that max-loss per day when missing the external pressure of a prop-shot or hedge-fund? It is a true character deficiency of mine that i fully understand and need to fix
Lol, I actually did. Transferred my initial deposit from my trading account, set aside the money for taxes, and I’ll leave the profit in there for when I get back to being disciplined. Was up 120% on the year.. gave back about half of it on 3 dumb strings of panic trading
Wow the information discussed here has some incredible perspective..my options backtesting is going so well that I'm getting very excited about going live. But thinking about the mindset it takes to achieve the pnl talked about here is not only mind boggling, its humbling. Great job Swang 💪
@@d-mr96nbaicey1ne7 oh I'm sure it will be. My main concern will be the differences in the fills and I plan on starting off small. I have shown some promising results though and I want to build on it just like I did with equities.
@@mikeanis8554 You're sharp cookie. Just do what I didn't and take all the well worn advice out there. You own a copy of "Trading in the Zone" by Mark Douglas too hopefully ?
sometimes you can't control that but that's always something to be thinking about especially if you are trading something where the chances of that are very high. We reduce share size on things that are moving quickly
Mike, does the firm not have auto closures / risk management in place, similar to margin calls? or is it entirely dependent on the trader and that expectation of trust is there - which could also be seen as a positive (however could result in some bigger losses for the firm on occasion?) understand there is overall live views of risk across the floor, however just interested to hear on this - cheers
I've got a question regarding the last part of this video. You mention you have a trader that "views it as a challenge to never get stopped out in a particular trade" each day. This last bit kind of confused me as getting stopped out is normal part of trading that keeps your losses smaller/manageable. I'm just curious of what he's doing to not get stopped out? Does he just use a wider stop level? Only taking A+ set ups? Start with small positions and average into a larger as the trade goes in their favor? I guess my real question is if it's such a challenge not to get stopped out, I feel like that would lead to taking much bigger losses holding onto a loser beyond where you should had been stopped out at...
he focused on improving his entries, waiting to see confirmation with his trades. when he focused on taking on less stress with his trades he performed better.
I agree with the person above comment - it has to be prefect entries and likely the low of the day and all stars align for this trader to likely put on big capital and hit it. There are trade set up out there that are 80-90% high probability winners based on that framework. You really think about it, the more you play the more you'll get stopped out. But if you wait for the prefect entry when the opportunity presents it self, you have a higher chance of hitting. Single and doubles all day
This is a very serious and valid video for all of US who just think that trading is about making a bunch of money and enjoying life. Well as Bella has so seriously pointed out it’s a business to him therefore it’s a JOB to anyone the firms ends up hiring to do the heavy lifting. It’s definitely a very privileged Position to be placed in for sure but it is also a job that has rules, boundaries and limits that go along with everything else we admire about it. So just remember everything that glitters truly is not gold and all JOBS come with rules no matter how cool that job maybe be. No matter how much money you make or can potentially make. Do what your asked to do and respect that part of the job that says here is the line don’t cross it until given permission or extended that courtesy because it’s not your money until IT’S YOUR MONEY. Period full stop the end. True story just started the DNA/Winning Trader course so it’s super important to me what Bella just said.
@@smbcapital I'd like to see more on volume profiling if that's possible, I've watched everything you guys have on yourtube, it was a massive help to me trading indices especially the one with Ryan(I think is his name) and the one where you brought in a guy from the UK. I plan on making my way over to NYC from Australia to take a course with you guys when this covid business is over. Thanks for all the help that you have put up for free in the mean time 🍻
Very inspirational. I always try my absolute best to not lose a single trade. But this does unfortunately mean that I currently tend to miss some trades.
What if your draw down is $1200 but you didn't lose the money and it comes back up and you make a ton of money for the firm? Is that still bad? Are we talking actually losing the money or just dipping below $1,000 if no stops are used, unless stops are required.
I scalp and I never market sell, always limit. There is slippage usually when scalping and limit filling on the way out of a trade. However, its not significant enough to really take away from my daily profits. Although, I assume it eventually can be with a large enough position....
Can usually read the order flow and assume short term intentions despite the endless icebergs on the books to hopefully hit out at the bid or if it's a runner you can often "non display" your lots and can sometimes get out above the bids. All depends on how fast you are....ladder trading only for scalping IMO there isn't another easy way.
Thank You for this video Bella, this is great wisdom and a must have. My Trading plan always has a max loss stop per trade and is not to be widened for any exception. In the past I have moved my stop and almost always regretted it. Your explanation on ethics is very very good. Thank You.
not necessarily - we have traders all around the country but we do prefer they start in ny initially. Some started here and moved else where after a couple years
@@smbcapital Thank you so much.I've learned so much from SMB.I sell cash secured puts and covered calls after watching your content.Would like more videos on this.Thanks for your time.
I found out, but I don't have the budget. I can serve for 1 year. Would you accept me as your student and supporter? I have really big goals and I need your help.
yes we do on occasion. If you hold overnight you will have to hedge your risk. Most will do via options or if they are long TSLA they may take overnight shorts in QQQ to help hedge.
you should check out our options webinar. Optionsclass.com we trade mainly income type strategies which are less risky than buying only call or puts. Many don't understand the risks to trading directional options. A lot can go wrong - even if you are right!
One of your traders views it as a challenge to never get stopped out? I'm not sure I understand that. Don't the best traders on the planet get stopped out on a regular basis?
You guys have posted the essence of this video (i.e., define risk, stick to ur stop, etc. etc., or DIE) numerous times over the past few years. Dr. S even went so far as to say (I’m paraphrasing, “A failure to stick to one’s Stop-Loss is a character deficiency…”). Sounds like ur traders are letting u guys down… Sad!
@@user-zx8db8sf2t It seemed negative to me, and I wanted to defend SMB since they provide so much for the trading community. If you weren't intending anything negative then I apologize for my misunderstanding.
FREE Workshop with SMB bit.ly/3Dc9Qqu
I needed to hear this, just lost 22k the past week. Could not stick to my stop loss, was overemotional, tiered up, doubled down. I'll be back stronger and learn from my loss to become an amazing trader like the ones in your firm.
Ahahahahahaahahahahahahahahahahahahahaahahahahahahahahahahahahaaaaaaaaaaaaaaaaaaaaaaaaaaa
ahhhhhhhh
hahhahahahahahahahahaahahahahahahahahahahahahahahahahahahahhahaaaaaaaaaaaaaaaaaaa
I just go to the sec page and see what the political insiders are doing. :)
In the video. Traded 250k in 2 stocks. That's risky
I hope its going well bro?? I've just experienced the same thing over the last 3 weeks, I'll be back and back stronger too ! Needed to see the encouragement
@@blacckz I came back from my loss and made it back after 3 months of careful trading. Ended up losing it all later as the market crashed and I got screwed over by margin and a “mentor”. Going to start law school in two weeks, having to play the long term game now and wait till I graduate in 3 years. When I get that lawyer $$ I’ll have enough disposable income to trade again. Enjoy the journey man it has its ups and downs but there’s no better high than being a successful trader.
I like so much how Mike continues to educate us. It's like we are part of his team. These 6 minutes bring us all more than 6 books about the same topic. Thank you SMB Capital, thank you Mike!
Appreciate the feedback. We do hope you feel like you are in the room.
“One trade is not worth stopping yourself out for the day “ idk why as simple as that sounds it’s so crucial , and it’s easy for a trader to risk everything in one trade . He’s so right though there’s many opportunities
I think the mentality of the mentioned trader in the end was an amazing nugget of gold. only way to do that is quality vs quantity. Thanks Mike!
Max loss should be respected like your life depends on it.
absolutely
I want to know that sometimes stocks behave same makes specific patterns for around two month but what to do when they didnt behave like that? i know after that period this specific stock shouldn't be traded but after that what to do?
Excellent video. Do you distinguish between maximum intraday loss and maximum negative exposure? Realized loss vs unrealized loss?
Thank you Mike, from Spain. You are a big help for me. I love your books!
Thank you for all your guidance and wisdom
In the Art of War, sun tzu makes a point of discipline in the very beginning by killing those who showed lack of respect for commands.
Amazing perspective. I guessed $1500 for the max drawdown on that $300k win. I was close :)
Close!
Great advice Mike and a rule that needs to be respected n reinforced everyday b4 you turn your machine on. Thanks!
what if youre a position and swing trader? balance equity can move around more than 1percent a day
Mike. Is there a discussion about what percentage of daily acceptable risk/loss is appropriate to be used per trade? And obviously if there will be multiple positions that must be divided among them.
The free tutoring you're offering here is amazing. Appreciate that there are decent and genuine prop firms out there like yourselves. I will continue to watch with interest as I grow in my trading journey.
Thank you, Mike! Have a great day as well
thx! enjoy the weekend!
300k pnl with 3k drawdown. Goals. That really is amazing
to me this is one of those videos I listen to at each trading session. The seriousness of Mike is what keeps me disciplined with my own account -- not a prop firm trader myself, but this is even valider and indipedent retail trader. thanks Mike!
This is a good reminder. I know exactly how this feels while I manage my father’s account. It is far worse to lose with my father’s than my own
Thank you Mike! always great stories and ideas. very insightfull
you got it 👊
So they automatically put in the stop loss right after the trade or do oco?
We are discussing stop loss for the full day in this video but yes most traders will have stops placed shortly after entering
My max daily loss for my tiny account is $20.
have to start somewhere!
advice and/or resources you could share (maybe sth. from Dr. S even) for retail trader to stick to that max-loss per day when missing the external pressure of a prop-shot or hedge-fund? It is a true character deficiency of mine that i fully understand and need to fix
Headed to the mirror now to fire myself for today!
Lol, I actually did. Transferred my initial deposit from my trading account, set aside the money for taxes, and I’ll leave the profit in there for when I get back to being disciplined. Was up 120% on the year.. gave back about half of it on 3 dumb strings of panic trading
We all have to at some point
Glad you are taking a step back
Thanks
Mike - love to see the video lesson on how to set up the position to limit the drawdown
Wow the information discussed here has some incredible perspective..my options backtesting is going so well that I'm getting very excited about going live. But thinking about the mindset it takes to achieve the pnl talked about here is not only mind boggling, its humbling. Great job Swang 💪
We have a series of 8 options videos coming (back testing will be discussed)
@@smbcapital thats awesome! More content to look forward to
@@mikeanis8554 Be prepared to find your live results are vastly different from the backtested accounts.
@@d-mr96nbaicey1ne7 oh I'm sure it will be. My main concern will be the differences in the fills and I plan on starting off small. I have shown some promising results though and I want to build on it just like I did with equities.
@@mikeanis8554 You're sharp cookie. Just do what I didn't and take all the well worn advice out there.
You own a copy of "Trading in the Zone" by Mark Douglas too hopefully ?
Thanks Mike, I needed to hear this today, very timely!
Awesome!
Thanks Bella. More like this please. God knows I need it.
of course!
Powerful. Thanks again Mike and team for the insight 💪
As Warren Buffet has said, and also my quant instructor has said, "Rule #1 is: DON'T LOSE MONEY. Rule #2 is: DON'T LOSE MONEY.".
What happens in case of any flash crash/rise or any fat fingre trade where M2M just swings crazily for just some moments?
sometimes you can't control that but that's always something to be thinking about especially if you are trading something where the chances of that are very high. We reduce share size on things that are moving quickly
@@smbcapital got it 👍 Your videos have been very very helpful
Mike, does the firm not have auto closures / risk management in place, similar to margin calls? or is it entirely dependent on the trader and that expectation of trust is there - which could also be seen as a positive (however could result in some bigger losses for the firm on occasion?) understand there is overall live views of risk across the floor, however just interested to hear on this - cheers
Starts with the trader to liquidate
I've got a question regarding the last part of this video. You mention you have a trader that "views it as a challenge to never get stopped out in a particular trade" each day. This last bit kind of confused me as getting stopped out is normal part of trading that keeps your losses smaller/manageable. I'm just curious of what he's doing to not get stopped out? Does he just use a wider stop level? Only taking A+ set ups? Start with small positions and average into a larger as the trade goes in their favor? I guess my real question is if it's such a challenge not to get stopped out, I feel like that would lead to taking much bigger losses holding onto a loser beyond where you should had been stopped out at...
he focused on improving his entries, waiting to see confirmation with his trades. when he focused on taking on less stress with his trades he performed better.
I agree with the person above comment - it has to be prefect entries and likely the low of the day and all stars align for this trader to likely put on big capital and hit it. There are trade set up out there that are 80-90% high probability winners based on that framework. You really think about it, the more you play the more you'll get stopped out. But if you wait for the prefect entry when the opportunity presents it self, you have a higher chance of hitting. Single and doubles all day
@@touher6071 I agree, when I started waiting for the high probability setup's I make more money , and don't spend time on bad Trade's.
Thx Mike, you the best giving free education on CZcams
👊 you got it!
This is a very serious and valid video for all of US who just think that trading is about making a bunch of money and enjoying life. Well as Bella has so seriously pointed out it’s a business to him therefore it’s a JOB to anyone the firms ends up hiring to do the heavy lifting. It’s definitely a very privileged Position to be placed in for sure but it is also a job that has rules, boundaries and limits that go along with everything else we admire about it. So just remember everything that glitters truly is not gold and all JOBS come with rules no matter how cool that job maybe be. No matter how much money you make or can potentially make. Do what your asked to do and respect that part of the job that says here is the line don’t cross it until given permission or extended that courtesy because it’s not your money until IT’S YOUR MONEY. Period full stop the end. True story just started the DNA/Winning Trader course so it’s super important to me what Bella just said.
Thanks Mike.
What happened to the tape reading videos? Those were amazing.
We’ll probably do more soon. We just wrapped up two days of filming so we’ll have more stuff coming soon
@@smbcapital I'd like to see more on volume profiling if that's possible, I've watched everything you guys have on yourtube, it was a massive help to me trading indices especially the one with Ryan(I think is his name) and the one where you brought in a guy from the UK.
I plan on making my way over to NYC from Australia to take a course with you guys when this covid business is over.
Thanks for all the help that you have put up for free in the mean time 🍻
THIS IS MY FAVOURITE CHANNEL ON CZcams NOW
love to hear it!
I would like to learn how to work for your company? Can you please advise me how to join.
Nice work
Ok Bella you convinced I'll take the
Ethics officer job.
Be in New York City in a couple of days.
from Sydney..ASP!
haha see you soon Razzy!
First part was like one of those 'your not cutting it' chats
Right on.
👊
Very inspirational.
I always try my absolute best to not lose a single trade.
But this does unfortunately mean that I currently tend to miss some trades.
Great Vid!
thanks SK!
What if your draw down is $1200 but you didn't lose the money and it comes back up and you make a ton of money for the firm? Is that still bad? Are we talking actually losing the money or just dipping below $1,000 if no stops are used, unless stops are required.
I wonder how it works with scalpers if they have to quick market sell and there is slippage.
I scalp and I never market sell, always limit. There is slippage usually when scalping and limit filling on the way out of a trade. However, its not significant enough to really take away from my daily profits. Although, I assume it eventually can be with a large enough position....
Can usually read the order flow and assume short term intentions despite the endless icebergs on the books to hopefully hit out at the bid or if it's a runner you can often "non display" your lots and can sometimes get out above the bids. All depends on how fast you are....ladder trading only for scalping IMO there isn't another easy way.
Incredible $3,000 draw down.
Right!
Being Sustainable Measured in Terms of Complexity Correlated to Risk Is Virtually Everything
probably the most important subject in trading not to exceed your total max stop loss!!!
Thank You for this video Bella, this is great wisdom and a must have. My Trading plan always has a max loss stop per trade and is not to be widened for any exception. In the past I have moved my stop and almost always regretted it. Your explanation on ethics is very very good. Thank You.
How can someone get a job at this trading desk? I assume you have to live in New York?
not necessarily - we have traders all around the country but we do prefer they start in ny initially. Some started here and moved else where after a couple years
Thank you for the insight
I’m a year from finishing my military contract. How do I get trained to do this?
right here dude. watch all the smb vids you can
We suggest watching our CZcams and trading an account and keeping your stats on all trades via tradervue. We want to see a solid track record
apparently there are some things that are exact and precise in this business
It can also be an emotional/psychological issue for beginner traders as well. So it is best to catch the issue early because it can turn into a loser.
Why? Explain
This guy is like the MIT professor in the movie "21" from 2008
Oh no, I feel like that por guy from FL. got fired.
This will get you FIRED on a trading DESK....FIRE.....FIRE....FIRE....FIRE!
What's the chance of that trader you were talking about that made all the money doing a webinar on his trading style?
We’ll try!
@@smbcapital Thank you so much.I've learned so much from SMB.I sell cash secured puts and covered calls after watching your content.Would like more videos on this.Thanks for your time.
I found out, but I don't have the budget. I can serve for 1 year. Would you accept me as your student and supporter? I have really big goals and I need your help.
Do you guys hold positions overnight? What if an extreme black swan gap exceeds the stop loss and limit?
yes we do on occasion. If you hold overnight you will have to hedge your risk. Most will do via options or if they are long TSLA they may take overnight shorts in QQQ to help hedge.
Doesn't smb have daily lock outs?
We do but sometimes you have overnight risk or you could get stuck in a stock that goes limit up or limit down
We trade better with other people's money than with our money.
This is really what I want to learn and do full-time.
Never martingale against the trend
OOOOOF account gooooooooone
@@2321brendan yeah quickest way to die in futures trading that’s for sure
I am getting destroyed trading options
you should check out our options webinar. Optionsclass.com we trade mainly income type strategies which are less risky than buying only call or puts. Many don't understand the risks to trading directional options. A lot can go wrong - even if you are right!
Have you ever had anyone at the firm who trades exclusively Bonds and Notes? ZF ZN ZB UB
Ben & Jerry’s ice cream?
What was the PnL of that ridiculous trader? 200 million?
1k a day!! i could do that ;)
One of your traders views it as a challenge to never get stopped out? I'm not sure I understand that. Don't the best traders on the planet get stopped out on a regular basis?
when traders focused on decreasing their stress, not drawing down much, they performed better.
@@mbellafiore19 what kind of accuracy is possible outside of scalping?
Did someone get fired?
haha not recently BUT in the past yes we have had to let people go for not respecting their stops
@@smbcapital I imagine that would make the partners real Cranky real quick
You guys have posted the essence of this video (i.e., define risk, stick to ur stop, etc. etc., or DIE) numerous times over the past few years. Dr. S even went so far as to say (I’m paraphrasing, “A failure to stick to one’s Stop-Loss is a character deficiency…”).
Sounds like ur traders are letting u guys down… Sad!
They aren’t bc we stress this over and over with them :)
I don't think they aim to make Mike unhappy 😆
The goal of this video was to mention that someone in the firm made two quarter million days.
Maybe you should ask yourself if you can be happy for someone who outperforms you. Is throwing shade the best contribution you have?
@@j.davidsapp6212 maybe you should read my comment again? Where do you see me being unhappy about anyones performance, David?
@@user-zx8db8sf2t It seemed negative to me, and I wanted to defend SMB since they provide so much for the trading community. If you weren't intending anything negative then I apologize for my misunderstanding.
What do prop traders get paid