This is a video for my trades for today and yesterday.
I over traded which cost me but “Keep Calm and Trade On”
Chili Pharmer
My Trading Journey
$3,000 profit shorting $WTW
Happy Valentines day folks! Hope everyone is having a good Friday. I wanted to share today’s trade. I shorted $WTW on bad earnings. Check out the video for more info.
BE LIKE WATER MY FRIEND
Bruce lee was a amazing human being. He was so focused on his craft he became a master at it and changed forever the martial arts industry. With so many distractions and temptations these days its hard to stay focused and motivated on your goals. Stay disciplined through all the noise and you to will be a master! Got off to a rough start in 2014 but its all about how you finish.
WHAT IS A FLOAT? WHAT IS A LOW FLOAT STOCK?
Wife is helping me do some research and she asked me what a float is. I told her its not the same thing I came off when we got married! …thats a different story. Check out the video and I hope I answered your question.
BOOK REVIEW: “ONE GOOD TRADE: INSIDE THE HIGHLY COMPETITIVE WORLD OF PROPRIETARY TRADING” BY: Mike Bellafiore
I picked up this book because I wanted to know all I could about working for a proprietary trading company. Back in May I was trading for a prop firm and I wanted to know what its like to work for one and what to expect. I bought this book off audible and it took me about a month to finish. The audible version is 15 hours and 8 minutes long.
The book was more geared toward SMB Capital, the prop firm the Author co-founded in New York City. The book is entertaining to read and it gives a lot of good insight about specific traders that used to work at SMB. Mike Bellafiore the Author and the co-founder of SMB Capital gave a general overview about what it takes to trade and work at a prop firm. He talks about how to be a good trader, what skills you need, type of personality, and work ethic to be successful trader. I would definitely say that Mike has seen a lot of people come and go and the ones that stick around have the right motivation and desire to progress as a trader. Mike talks about a lot of the traders that he managed and the ones that went on to be extremely successful and the ones that did not last.
I would recommend this book to anyone who wants to get a insight on proprietary trading and what it’s like to work for a prop firm such as SMB Capital. If you are looking for more educational material or a strategy book where you can apply the information right away then this book is not for you. This book is going to give you a general overview of prop trading, personally I think its a good book and if you are new to trading then I would recommend this book so that you can get a overview of a day in the life of a trader.
FROM PROP FIRM TO HEDGE FUND
Whats up America! Hope everyone is having a amazing summer and getting ready for the last half of the year. Time is flying and 2014 will be here in no time. I wanted to give everyone a update on whats been going on for the past month (August).
If you read my my past post then you know that I am trading with a Prop firm. This prop firm is off shore and based out of the Bahamas. I am sure a lot of you have heard of SureTrader the very popular broker based in Bahamas that offers traders amazing borrows for shorting penny stocks. I personally do not have a account with SureTrader but my prop firm is also based in the same city, Nassau, Bahamas. The reason my prop firm is based out of Bahamas is because the SEC cannot regulate or have not been able to regulate companies based there. Since Bahamas is not part of the US its hard for the SEC to implement their laws there. Hence giving traders the freedom to day trade as much as they want. Some of the benefits that these off shore firms offer are:
No PDT rule
Freedom to day trade as much as you want
High margin, up to 10x the buying power or more
Low profit split between firm and trader, I used to have 99 to 1 ; 99% I keep: 1% the firm keeps
Great trading platform: I believe the best day trader platform is DAS Trader , Lighting quick executions!
Over the last few months the SEC has been trying to get a hold of the off shore firms and crack down on them because they are contracting US traders and giving them the power to by-pass SEC rules. Obviously the SEC doesn’t like that, and they want everyone to know who’s boss so eventually they want to stop these dealings and possibly shut down these firms who contract US traders. I received this information from my prop firm and a industry insider. They personally have not been approached by the SEC yet, but they do know of other firms that the SEC has gone after. So in order to continue to do business with US traders they are being proactive and moved their offices to New York City and started a hedge fund.
A hedge fund works completely different. There are specific rules and processes to follow and doing things the right way or the SEC way is what its all about. Once I am setup I will be able to trade the funds money, the more profitable I am the better advantages I will have in the future. For the past month that’s all I have been doing, waiting for paperwork, studying, learning, and getting educated. I should be ready to go by next week. I can’t wait…. I am ready for some ACTION!
In the meantime I’ve had some time to chill and actually do some work at my real job as a Corporate Recruiter. Also caught up on some TV shows, Dexter, Breaking Bad, Ray Donovan and Walking Dead…. right boo! lol
Audio Book Review- “Trading in the Zone” By Mark Douglas
I just finished a audio book by Mark Douglas called “Trading in the Zone”. I signed up with Audible through Amazon, which gives you a wide selection in many different categories. Audible is $7.95 a month, I think its well worth it if you read a lot or in this case listen!
I went with a audio book because I like to listen while I drive to and back from work…. and sometimes during work, or while sitting on the couch, riding shotgun or at lunch… you get the point. Its very convenient since you can download it on your iPhone and you can listen anytime you have a free moment. Trading in the Zone was 8 hours and 7 minutes long and it took me about three weeks to finish.
This book is not about trading strategies and its not going to teach you how to trade. This book is about the psychological aspect of a trader. It will give you insight on how a trader needs to think and understand the psychology of the market to be successful trader. The beginning chapters were kind of slow but it picked up towards the middle and end. There is some great information and analogies to help you understand how a trader thinks. Since trading is very challenging mentally this book will help you understand on how to develop a strong mind and the way you need to think as a individual trader and market as a whole. I would recommend this book just so you can get more knowledge of the psychology aspect of trading. Its a easy read and should be part of your arsenal.
More Motivation
Trading is one of the most challenging things that anyone can ever do! If it was easy everyone would be Multi-Millionaires…. No really! But… its not impossible either. If you study hard and work at it you can be very successful at it. You also have to stay inspired and motivated just like anything in life. I have not traded in two weeks… I actually had to do work at work. I look to get back at it next week. Thanks Rubin for the Vid!
WATCHLIST 7.12.13
S&P is on a rally and looks to continue the run tomorrow. There were a few movers today but overall a quite day.
Here is what I am watching for tomorrow.
1. $ISIS – Isis Pharmaceuticals
This stock has been on a rally, looking for a pullback tomorrow for a short play. FDA approved one of its drugs a few weeks ago hence the run up. Dont look for a major dip but some profit taking that could bring it back to the 30 or 31 area.
2. $PGNX – Progenics Pharmaceuticals
Stock broke out of flag for a run. Did not see any news but could run for a second day. Could dip in the morning, look for continuation pattern.
3. $CIEN – Ciena Corporation
Had positive news on company, broke out of its flag on the daily chart. could see day two for more run tomorrow. Or a small pullback.
EARNINGS PLAY
1. $WBS – Webster Financial Corp.
Earnings before market open
MISC PLAYS
$FLIR- Flir Systems
Stocks looks overbought on the daily. Earnings coming up on July 25th.
Chili Pharmer 