The light I shine on the world of prop trading will include my mistakes and those of other prop traders. A great trader is an elite performer. Elite performers spend every day trying to improve. Every day we trade is an opportunity to learn from the market. My mistakes and those of other prop traders are just gifts from the market for us to improve, and they will be shared so you can learn. (View Highlight)
Note: Mainly this book talk about professional trader routines, habits and behavior. It portrays what professional trader at prop firm do “professionally”.
Just some advice. Your risk-adjusted return is more important than your gross P&L. You shouldn’t try to make 5kadaybylosing5k. You shouldn’t do this after 10 years and you certainly shouldn’t do this when you start. Often new traders think their ability to lose a lot symbolizes their potential to make much more. No, it doesn’t. You should never lose more than half of your median intraday gains. If you are making 1kaday,andadowndaypreviouslyforyouwasa^ˆ’500,thennowallowingyourselftolosea^ˆ’5k doesn’t mean you will now be able to make 5k.Itmeansnowyoucanlose5k. Some new traders just don’t understand this. (View Highlight)
At SMB, we ask our traders to follow a set of seven fundamentals before entering every trade. Our fundamentals are: (View Highlight)