Episode 162 ... Mike Bellafiore (69:12)

Runs prop trading firm, SMB Capital, established 2005
Partner is Steve Spencer
Stages of becoming a trader:
First stage: consistency; second stage: size; third: breadth; fourth [missed it]
Put your trades in TraderVue to measure your results
Foundation: Is it a good stock to be trading? Is there news?
Need passion for trading, and a really solid training foundation, and perseverance
Big winners at his firm all trade differently
You need to discover your niche by experimenting
Recommends reading Carol Dweck's book, Mindset
Period of historically low volatility hard for traders, no opportunities to make money
Had to develop trading strategies that make money in low volatility market
Then when volatility returns, be able to switch back to old methods
Have to be able to adapt when conditions change
Post your daily trading report card (consistency, sizing, etc.), not your daily P&L
Austin somebody in Sydney is a great role model for a daily report card, follow on Twitter
Daily routine: did you sleep well, did you exercise, did you review your charts after the close?
Agrees with Blair Hull that all great things are created by teams, not individuals
Archive different trades: e.g., the breaking news trade (like MTCH on FB news day), tag it in TraderVue
Build your playbook, know the setups that you trade well
Joint venture with Kershner Trading Group, for some scanning technology?
Make $4000 a month consistently [cube farmer salary], then increase your size (dollar risk) little by little (up 20% a month)
Have $1000 of dollar risk per day, risk 20% on one trade ($200), self limited to five trades a day
Don't go from risking $1000 a trade to $5000 -- jump too great, get bigger gradually
Don't think about making a million dollars, think about making $1500 a month
First step in progress is to lose less, next step is to breakeven, then $1500 a month, then $4000, then $10000, etc.
Takes three years to start making money even if you have the best resources (technology, coaching, plenty of capital)
Keep plugging away, go from 20 yard line to 30 yard line
Twitter: @MikeBellafiore