What a month! July was the month I took the next step forward in my trading journey and started SMB Capital’s “DNA of a Successful Trader” program. Trader DNA is comprised of 14 self-paced modules covering every aspect of professional trading – prep work, setups, PlayBook trades, entries, profit targets, exits, position sizing, psychology, and mentoring. I’m only a few weeks in, am halfway through Module 5, and am loving it!

Two of the big benefits I’ve experienced so far, apart from the wealth of information provided from a large swath of professional traders, are the daily morning meetings and access to SMB’s proprietary technologies. The morning meetings are done each day before the open, where co-founder Steve Spencer reviews the overall market activity and presents three or four “Stocks in Play” for the day. These stocks are the ones he’s selected that provide the greatest potential trading opportunities for the day. While my full time job doesn’t afford me the luxury of trading most of the day, a large number of moves happen within the first hour of the market open, and I’m seriously considering adjusting my work hours so that I can trade the open each day. This would mean that I’d trade 7:30-8:30am, then work 9-5, and hit the gym from 6-7. Eat, talk with Christine, and study from 9-11. I’ve been gradually adjusting my schedule to do just that, having gotten spoiled by my short commute and sleeping in until 7:30. Since joining SMB, I’ve been getting up at 6:30 to attend the morning calls, and falling asleep around 11, so it shouldn’t be too big an adjustment – though I have spent the last two years going to work early and getting done at three, so that’ll take a mindset adjustment.

Another cool thing about the Trader DNA program is access to SMB’s proprietary trading tools. These include the SMB Stock Screener and SMB Radar. The Screener allow me to set about 15 different variable criteria and then returns a list of all stocks that meet those criteria, along with relevant data. I’m still learning to use it, and often my criteria are wrong and the stock I want to explore isn’t listed. The Radar is another tool that shows what stocks are in play, by SMB’s criteria, and it is looking to be worth the price of admission alone. As traders, we need stocks to move to make money on them. These tools provide refined lists of stocks with potential. Then all I have to do is explore the charts of each one until I find one or more that set up to match my trading style. I’m digging it!

So far I’ve done three trades. As Mike Bellafiore, Managing Partner of SMB Capital, says, “Your goal is to make One Good Trade. Then One Good Trade. Then One Good Trade.” Of my three trades, I consider two of them “good”, although both could have been better. That said, the FNKO trade I did yesterday put me in the black, which is a great feeling. My studies are paying off and I’m learning how to do this stuff!

My goals for the next month are to take more trades and to get bigger in my A+ setups. Right now I’m focused on Funko ($FNKO) – my good trade from yesterday, that reports earnings this Thursday. I’m going to sell my underperforming position in PTC and add to the FNKO position Monday morning. This will bring the position up to 30% of my trading capital, which is about the limit of risk I’m willing to take on it before earnings. Since I have therapy Friday morning and won’t be able to trade the open, I’m considering taking half my position off Thursday if it continues to run up. This is because the CPI report comes out Friday and could shock the market if the numbers aren’t good. That’s one of the lessons I’ve learned from my reading – don’t be in a position where an exogenous event could wipe you out. Obviously, I wouldn’t get wiped out if there’s a big selloff on Friday, but I’m likely going to take the conservative route and lock in some profits Thursday, just in case. Besides, I think FNKO’s 3rd and 4th quarter results are going to be even better with the holiday buying. And, if there is a selloff, I’ll have more capital to put to work at lower prices. šŸ™‚

#HowGoodCanYouBe