I just started reading One Good Trade: Inside the Highly Competitive World of Proprietary Trading (Amazon affiliate link). This is a great book. In fact, it’s more than great—it’s fantastic!
One of the big ideas the author, Mike Bellafiore (Bella), utilizes is to trade one good trade, then trade another one, and then continue this process. Bella’s firm, SMB Capital, employs many top-notch traders to execute the firm’s trading strategy as a process.
At Bigger Capital, we use a similar process. We have a one-good-trade framework based on our own recipes and we use technology to multiply the do-another-good-trade-and-another-one-etc. model.
So the idea here is to find that one-good-trade framework that works for you. We are all different, so your framework will be different from mine, and mine is different from what Bella and his colleagues have developed.
Developing your framework is where the creative part comes into play. Shape that framework as if you were sculpting until it is perfect for you. If you are stuck, just break down the task and iterate until you get to the desired outcome. For more information, read Break Down Your Algorithm Plan into Smaller Parts.
Once you have a solid framework in place, then it is about applying the processes consistently, neurotically, and obsessively. While you’re at it, reduce the friction in the process as much as possible.
Good luck with it, and let me know how it goes.
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