Sometimes it’s your job to lose money

In this video, Seth Freudberg discusses why it is disadvantageous for a trader to get into a mindset that he must win every trade at all costs. He must instead accept that the best trades have anticipated losing months in each year, no matter how well designed that strategy is.

One of the Most Important Trading Skills You Need to Develop

This coming Wednesday, after the market close, Bella is going to teach a trading class about one of the most important trading skills that many traders don't understand.
Tape reading is a crucial skill for all types of traders.

The End of Volatility

During the first three years of my trading career I participated in a stock market that seemed to move 1%+ almost every day. That market was built for short term traders. But during that same time period regulators pushed through a series of market structure changes that I believe laid the
foundation for a long term decline in stock market volatility.

Impatience is a major enemy of beginner options traders

In this video, Seth Freudberg details the problems of raising capital level too quickly and suggests an alternative way to structure your growth process as an options trader. After experiencing some success over a small time period, they decide that they can trade much larger without understanding the tragic ramifications of increasing your capital level too quickly.

See the Hypos

Today we're looking at creating premarket if/then statements. There's a powerful list of benefits associated with adding this to your routine.

I hope that is helpful to your own trading.

Merritt Black

*No relevant positions

Important Disclosures

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The danger of the overconfident trader

Yesterday I wrote about a trader struggling with added size and risk.  In seeking a solution for this trader one possible area of focus was overconfidence.  How does it happen?  Why is it dangerous?  What can we do to combat overconfidence?

You trade well.  You are seeing screens well and the market is trading in a way that allows your strengths to produce outsized PnL.

A trader struggles with added risk

Here is an anecdote from our proprietary trading desk in NYC.

A consistently profitable trader (CPT) shot me an email this week to chat about struggling with a recent bump in share size and risk.

A loud coaching session on the desk

Yesterday we had a loud, unscheduled coaching session with the newest traders on our desk.  There were raised voices and language not suitable for network TV.

By my count this was the third time these newest traders did not meet an acceptable level of AM preparation.  I am not suggesting they did not prepare.

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Win Percent is Overrated!

Let's look at one of my recent trading sessions. It was a low win percent session, but the benefits of reading the tape kept me in the drivers seat the entire session. Read more [...]