How to learn a new strategy, yes small trade size is a good idea. I suggest that even before doing that, paper trading for longer than you want to is the best way to start, to shave off the really rough edges first. Paper sounds wimpy and doesn't really engage the emotions. But, it's like being a pilot, finish ground school before getting in the air.
When fishing you release a little lure at a time. You limit your line. Most importantly if you don't get a bite know when to reel it in and call it a day!
Dear Mike and Lance, I want to express my gratitude for the invaluable education I have received from your videos. I truly appreciate the time, effort and resources that you and SMB Capital have dedicated to this endeavour. I wish you guys well and I hope that you have a lovely weekend. Andrew :)
After learning the hard way the first time this is actually how I personally approach my new strategies. - Collect the data. - Make sure it's profitable. - Trade live for 1 month at the smallest possible size. Eg, 0.01 lot. - Then trade live for 1 month at 0.05lot. - If Green on the month trade live for 1 month at 0.10lot. - If green for two months trade 50% size. - If green for one month at 50% size trade full size.
This is like a chill pill to not really be so angry on yourself for whatever lack of process but see and react openminded on your progress. I am not saying it's sugarcoating but it reminds traders not to be so harsh on themselves but stay composed
When trying to add a new setup test the system with a basic spreadsheet that calculates PnL Record the entry, risk lvl, # of shares (can be done automatically w equation) then record the exit which will give you the PnL. You can go back and test it as many times as needed and also forward test it as you trade it to see if you perform better or worst vs the system. Gives you practice seeing where the exact entries are and what type of PnL could be expected. Once the spreadsheet is built you can copy it to test any setup you want and use it as a report card for your execution.
Love the discussion and mini insight into what HUNGRY and URGENCY looks like. Did anyone else just want to lift their game and "go to war" improving after hearing that?
Right on. Good stuff. Ya, im stuck trading small, b/c i dont track my stuff. and wont fix my bad ways, ie: in/out over trading, not sticking to stop plan. im profitable, but cant size up for some reason. trying hard to fix bad habits. im urgent, but im drilling thru hard rock (my thick skull lol) and it takes time.
Sense of urgency is the most important thing. It come from how much pain you have. Emotional journey on daily basis, constant back test, replay. Tape your last paycheck on the wall. Look at it every day. Channel thar energy in. Daily review trade, book of chart, DRC. Rewatch all the SMB video related to my play book as Trend day and RTM trader
Fight for price. Increase your position and limit your risk. Start with 1/4 to 1/3 of 1% risk then scale in. I have literally fought for price and put on 0.1% risk and made the same as I would have on a 1% risk that someone else would by rushing in.
6:55 hit the nail on the head. i was contemplating even full porting my account today a on cpi . its a small account at that so i figured i could get a nice boost in size and give myself some breathing room for losses should i incur. I don't think i will do that anymore even though i have a proven track record with my strategy lol. I just had a total losing week and just need to take things a little slower.
Go on sim or demo trading until the strategy is proven out. Plain an simple. Aim for a higher win rate during demo - 80% or better. In real market it will be a lot lower because of other factors like psychology, emotions, slippage, spreads, etc. During demo, test out various position sizing, monitor drawdown, and optimize entries and exits. When ready, apply on real capital. Can't expect to yolo on a new strategy with real capital.
Trading is not complicated but it is never easy to be continuously profitable. It is a mental game. After all, you've got to make sure that the edges are on your side. Has anyone seen a professional gambler who play just roulette. I think not because the edge is on the side of Casinos. I like this video. Thanks to SMB but the a few thousand dollar fee on the training course stop me and probably many others from signing up with it.
Do you buy strategies? Seriousl question.. I have a couple that show up every day in the market and I'm pretty sure it's not a well known one, but the algos are programmed to it.
If a trader is struggling with the psychology of increased size, is it possible for your developers to write a code for the platform that shows the trader their regular size even though they are actually trading with increased size? This way the trader will feel like nothing has changed and can trade without the psychological pressure they get with increased size. Also, the floor manager can determine if it's the size that is the problem or another underlying issue. Just my contribution to the bucket.
Learned a momentum strategy which capitalizes on the first pullback and it helped me pass my funding trial. Momentum has died and I am struggling to be profitable. Would you all recommend building a new strategy to deal with the August doldrums? Or just lay out until momentum returns? (I am actually working on a strategy already, but not sure if I should be implementing it until I have time to do more testing and SIM it) . Thanks
I know this might be a little off topic but what is v-cycle? I see it pretty much on every chart that is shown in past uploads. example " Trading Rules: The 3 Types of Trades and How to Execute Them " minute 12:25
The trading strategy that works for me is that I wear a tank top and my biggest gold chains and play rap music. I swear I hit home runs every time I do this. I think it's because scared money don't make money. Mike what's your thoughts on this.
Interesting as always guys! Just started trading and I love the in depth practical analysis. There are a lot of growing pains but I’ve liked learning! Thanks again.
I’m having such a hard time staying discipline and saying no to trades I know I shouldn’t take. I don’t know what to do and it’s so freaking frustrating because I can read the market I really can!?
I've been trading just over 3 years. I had alot of success during covid but have been struggling a bit since. I've also done some strategy hoping here lately, which seems to work well in paper trading but I just can't find my niche in live trading. For me your content has been a God Sent.
I have found that any new strategy for me is only a new variable to something that is already working. Testing new strategy from a scratch is completely different game. Growing strategy vs adding strategy.
Learn the top 3 trade setups we are using on the desk here: tinyurl.com/2r3f5fta
Please where's the link?
How to learn a new strategy, yes small trade size is a good idea. I suggest that even before doing that, paper trading for longer than you want to is the best way to start, to shave off the really rough edges first. Paper sounds wimpy and doesn't really engage the emotions. But, it's like being a pilot, finish ground school before getting in the air.
When fishing you release a little lure at a time. You limit your line. Most importantly if you don't get a bite know when to reel it in and call it a day!
Well said
so many parallels ! go get em
Dear Mike and Lance,
I want to express my gratitude for the invaluable education I have received from your videos. I truly appreciate the time, effort and resources that you and SMB Capital have dedicated to this endeavour. I wish you guys well and I hope that you have a lovely weekend.
Andrew :)
When going with the trend full size position.And for counter trend trades quarter size position.
After learning the hard way the first time this is actually how I personally approach my new strategies.
- Collect the data.
- Make sure it's profitable.
- Trade live for 1 month at the smallest possible size. Eg, 0.01 lot.
- Then trade live for 1 month at 0.05lot.
- If Green on the month trade live for 1 month at 0.10lot.
- If green for two months trade 50% size.
- If green for one month at 50% size trade full size.
Appreciate you sharing
This is like a chill pill to not really be so angry on yourself for whatever lack of process but see and react openminded on your progress. I am not saying it's sugarcoating but it reminds traders not to be so harsh on themselves but stay composed
When trying to add a new setup test the system with a basic spreadsheet that calculates PnL Record the entry, risk lvl, # of shares (can be done automatically w equation) then record the exit which will give you the PnL. You can go back and test it as many times as needed and also forward test it as you trade it to see if you perform better or worst vs the system. Gives you practice seeing where the exact entries are and what type of PnL could be expected. Once the spreadsheet is built you can copy it to test any setup you want and use it as a report card for your execution.
I like that you encourage a new strategy vs. others who discourage 'style drift'.
Love the discussion and mini insight into what HUNGRY and URGENCY looks like. Did anyone else just want to lift their game and "go to war" improving after hearing that?
Right on. Good stuff. Ya, im stuck trading small, b/c i dont track my stuff. and wont fix my bad ways, ie: in/out over trading, not sticking to stop plan. im profitable, but cant size up for some reason. trying hard to fix bad habits. im urgent, but im drilling thru hard rock (my thick skull lol) and it takes time.
Love your videos. They force me to look at things more critically and up my game. I can only imagine how fierce it is in your trading room.
Sense of urgency is the most important thing. It come from how much pain you have. Emotional journey on daily basis, constant back test, replay. Tape your last paycheck on the wall. Look at it every day. Channel thar energy in. Daily review trade, book of chart, DRC. Rewatch all the SMB video related to my play book as Trend day and RTM trader
Fight for price. Increase your position and limit your risk. Start with 1/4 to 1/3 of 1% risk then scale in. I have literally fought for price and put on 0.1% risk and made the same as I would have on a 1% risk that someone else would by rushing in.
This is one of the best videos ever- thank you
👊
6:55 hit the nail on the head. i was contemplating even full porting my account today a on cpi . its a small account at that so i figured i could get a nice boost in size and give myself some breathing room for losses should i incur. I don't think i will do that anymore even though i have a proven track record with my strategy lol. I just had a total losing week and just need to take things a little slower.
Go on sim or demo trading until the strategy is proven out. Plain an simple. Aim for a higher win rate during demo - 80% or better. In real market it will be a lot lower because of other factors like psychology, emotions, slippage, spreads, etc. During demo, test out various position sizing, monitor drawdown, and optimize entries and exits. When ready, apply on real capital. Can't expect to yolo on a new strategy with real capital.
Appreciate your contribution here 👊
Trading is not complicated but it is never easy to be continuously profitable. It is a mental game. After all, you've got to make sure that the edges are on your side. Has anyone seen a professional gambler who play just roulette. I think not because the edge is on the side of Casinos. I like this video. Thanks to SMB but the a few thousand dollar fee on the training course stop me and probably many others from signing up with it.
Do you buy strategies? Seriousl question.. I have a couple that show up every day in the market and I'm pretty sure it's not a well known one, but the algos are programmed to it.
This content is just premium. Thank you for sharing
Thanks
If a trader is struggling with the psychology of increased size, is it possible for your developers to write a code for the platform that shows the trader their regular size even though they are actually trading with increased size? This way the trader will feel like nothing has changed and can trade without the psychological pressure they get with increased size. Also, the floor manager can determine if it's the size that is the problem or another underlying issue. Just my contribution to the bucket.
Learned a momentum strategy which capitalizes on the first pullback and it helped me pass my funding trial. Momentum has died and I am struggling to be profitable. Would you all recommend building a new strategy to deal with the August doldrums? Or just lay out until momentum returns? (I am actually working on a strategy already, but not sure if I should be implementing it until I have time to do more testing and SIM it) .
Thanks
Thank you Gents you’ve shared some food for thought today. I must make several layers of solutions so I can begin to better myself as a trader ❤
I know this might be a little off topic but what is v-cycle? I see it pretty much on every chart that is shown in past uploads. example " Trading Rules: The 3 Types of Trades and How to Execute Them " minute 12:25
The trading strategy that works for me is that I wear a tank top and my biggest gold chains and play rap music. I swear I hit home runs every time I do this. I think it's because scared money don't make money. Mike what's your thoughts on this.
My new strategy has been to watch SMB Capital youtube videos daily. :D
Interesting as always guys! Just started trading and I love the in depth practical analysis. There are a lot of growing pains but I’ve liked learning! Thanks again.
👊
Pure gold. Thank you Bella and Lance!
You are welcome 👊
Love these guys, I hope I can get a job here one day.
Lovely educational chanel. I have ever seen
Thanks Michael and SMB capital !!! ;)
As a basketball coach I loved the shooting analogy Mike. Thanks for the video.
Yes you particularly can appreciate that
I’m having such a hard time staying discipline and saying no to trades I know I shouldn’t take. I don’t know what to do and it’s so freaking frustrating because I can read the market I really can!?
Omg thank you SMB thank you Lance! Great content as always.
Great talk here, thanks!
When in doubt push the eject button and get out the trade!
Get yo ash out dat trade?
I've been trading just over 3 years. I had alot of success during covid but have been struggling a bit since. I've also done some strategy hoping here lately, which seems to work well in paper trading but I just can't find my niche in live trading. For me your content has been a God Sent.
Love hearing these videos are adding value to your trading 👊
This is exactly what I needed to watch
Can you post a link to the video Lance referenced for MULN and NKLA?
This hold true across multiple assets, always comes back to fundamentals
You guys are helping a lot. Pure gold hahahaha 👍🏻
the link at the end of the video for the 1 hour presentation isn't there. How can I access that??
tinyurl.com/2r3f5fta
I have found that any new strategy for me is only a new variable to something that is already working. Testing new strategy from a scratch is completely different game. Growing strategy vs adding strategy.
thxs for sharing!!
Always have a reason and a plan for a trade.
So good, wow thank you
Why don't you use SIM for collecting data? Why would you waste even your smallest risk?
Please can I get the link?
tinyurl.com/2r3f5fta
I don't know who I like more Lance or Mike.
Mike, or Lance.
Can I get some help here please.
Do I get to vote?
Lance
whre's the link??
tinyurl.com/2r3f5fta
Does SMB Capital recommend trading FUTURES Options over EQUITIES options? Do you trade *both* equally?
I tried hard but it is almost impossible to beat Wall Street and their robots!!
Find and develop a strategy that trades WITH those perceived robot advantages.
Are your interns also working full time jobs?
the internship is 8 weeks in the summer
Is Lance G-man?
no
💪💛🍻
👊
Only americans in america ?
oro do u have an office in europe for example ?
Thank you guys for this awesome video 🫡