Mike Bellafiore, author of One Good Trade and co-founder of SMB Capital and SMB U will be making a presentation on the principles of "One Good Trade" to the Options Tribe community

1. One Good Trade
The 7 Fundamentals
Mike Bellafiore
Author of One Good Trade
Co-Founder of SMB Capital
Co-Founder of SMBU

4. The 7 Fundamentals
 Proper Preparation
 Hard Work
 Patience
 A Detailed Trading Plan
 Discipline
 Communication
 Replaying Your Important Trades

5. 1. Proper Preparation
“Failing to prepare is preparing to
fail.”
John Wooden

6. A Trader’s Day- The Open

7. Midday and the Close

8. After the Close

9. The Power of Professional Trading
Tools
 Preparation tools
 Scanning Filters
 Idea generation

10. SMB Scanner

11. SMB AM Meeting

12. SMB Real-time

13. SMB Radar

14. 2. Hard Work
 Watching the Level II and Times & Sales
 Watching price action at your levels
 Important intraday
Prices?

17. 3. Patience
 If your entry price is 30 then where do you
enter?
 An upside of 5 and a downside of 1
 Chasing is for dogs
 Affects your exit if you enter at a bad price
 Hard to get big from a bad price
 Win rate declines

18. 4. A Detailed Trading Plan
 For if the stock trades in your favor
 For if the stock trades against you

19. My Favorite Teaching Exercise
 Tap a trader on the shoulder
 Why are you in this trade?
 Where will you exit?
 I expect an immediate answer
 If not then kicked off the trading desk
 Come back when you plan on being a
pro

20. 5. Discipline
 What do you do if your stock trades
against you?
 What do you do if your stock hits your exit
price?
 What do you do if your stock hits your
criteria for exiting?
GET OUT!!!!!!!

21. SNDK – 11/21/2005
 Intel Teams With Micron For NAND
Flash Production
 SanDisk in this space
 SNDK down 16%

22. SNDK

23. SNDK

24. Who is not a Trader- The Blow
ups
 Jon Corzine MF Global
 John Meriwether Long-Term Capital
 The London Whale 5B in losses
 Buzz Weinstein other side of the-now
famous London Whale trade.

25. 6. Communication
 Sharing information with community
 StockTwits
 Chat rooms
 Internet trading communities
 Create your own trading community
 I have traded solo…………………….

26. 7. Replaying Your Important Trades
 SMB Playbook
 Trades that make the most sense to you
 Build from your strengths
 Get bigger in the plays that make the
most sense to you
 Find more of them
 Trade them with more size
 This is how you become great

28. The PlayBook

29. The PlayBook
 Title
 Strategy Description
 Big Picture
 Intraday Fundamentals
 Long-term Technical Analysis
 Short-term Technical Analysis
 Reading The Tape
 Trade Management
 Trade Review
 Trade Idea

30. What Is Your Job As A Trader?

31. One Losing Trade
 If you make a losing trade is that One
Bad Trade?

32. A Professional Trader
 A professional trader takes losses all
the time
 Control their risk
 Do the right thing
 If I make this trade 1000xs will it work?
 @sspencer_smb, “A professional
trader takes many small losses.”

33. 7 Fundamentals
 If you have followed all 7
 Whether you make $ or not
 Then that is One Good Trade
 That is your job!
 Sustaining, consistently profitable
trader

34. SMB Mantra
 Make One Good Trade and then One
Good Trade and then One Good
Trade
 Coach K at Duke

35. Questions?

36. Feel Free To Contact Me
www.facebook.com/smbcap
@MikeBellafiore
mbellafiore@smbcap.com
www.smbtraining.com/blog