Blog

From floundering retail trader to profitable pro trader

SMB's main business is a prop trading desk in NYC.  We partner with The Kershner Trading Group, who offers the best technology suite in our space and massive buying power, to run this business.  Historically, even before Wall Street Warriors and One Good Trade and The PlayBook, SMB's competitive advantage has been training traders from new to consistently profitably and then high performing t

Competition at a prop firm fuels increased PnL

People often ask ne the value of trading at a prop firm.  And there are many value adds that a prop firm brings to a trader, but I want to focus on one powerful performance driver.

Competition!

When SMB first formed a JV with the Kershner Trading Group our younger traders were in awe at the PnL numbers of the legacy KTG traders.  There were/are some of the best traders on the Street.  It gave them inspiration to be better.  It gave them confidence that they could make multiples more of what they were.

Trading Binary Events

In this video Seth Freudberg discusses how to trade options around binary events like US Elections, Brexit, and Fed announcements. He looks at the thought process professional traders take around these events. Read more [...]

What would you tell your younger trader self?

As I write, I am headed to Austin, Texas to train the newest class for our partners at The Kershner Trading Group.

SMBU’s Options Tribe Webinar: Kerry Given of Parkwood Capital: The Ubiquitous Diagonal Spread

http://www.smbtraining.com/blog/wp-content/uploads/2015/12/Screen-Shot-2... 45w" sizes="(max-width: 150px) 100vw, 150px" />This week Kerry Given returns to the Options Tribe the use of the diagonal spread.

Did A Short SetupTrigger in JPM?

Following JPM's earnings report it gapped higher then faded the rest of the day. Steve Spencer discusses a possible short setup.

Steven Spencer is the co-founder of SMB Capital and SMB University which provides trading education in stocks, options, forex and futures. He has traded professionally for 20 years. His email address is: sspencer@smbcap.com.

No relevant positions
Read more [...]

The Proper Stop Loss

Bella shares two anecdotes from our desk this week of traders asking for risk bumps. Trader A asked to be bumped from 25 to 50k intraday as a stop loss. Trader B from 7,500 to 15k. In this video, Bella gives you a litmus test to determine your stop loss. Read more [...]

Sometimes Nothing is a Real Cool Hand

In this video, Bella corrects a new trader's journal from insufficient to elite. We are not doing our job if we do not set up our traders to find out how good they can be. Many do trading journals. But are you keep a trading journal that will help you maximize your potential?

A Trader’s Definition of Hell

What would a trader's definition of hell be? I say it's the following:
On your last day on earth, the trader you became will meet the trader you could have become.
Scary to think about isn't it?

I have two ways of avoiding "trader hell" that I'll share with you.

Focus on process. I can guarantee you that if you spend your days toiling in the need to be right, make money, "win", or get revenge - you will end up in trader hell. What separates many elite performers, in nearly all elite-performance fields, is a strong commitment to process.

The Vocabulary of Winning Traders

Winning traders have a specific vocabulary.
It doesn't matter what market, niche, timeframe, or trading style they focus on... the words they use (and don't use) are remarkably similar.
We know this because we have worked with thousands of traders over the past 20+ years... and we've seen losing traders turn into winning traders. Often, the vocabulary they use changes even before they start to see the profits role in.
Here's the good news... this vocabulary can be learned.
Just like any foreign language...