One Good Trade: Inside the Highly Competitive World of Proprietary Trading (Wiley Trading)

I don't often write reviews, but I really liked this book. I read this book in two days. I first heard about Mike Bellafiore through Dr Brett Steenbarger's blog, "Traderfeed". The title, "One Good Trade" refers to a process as taught by SMB Capital, a proprietary trading firm which Mr Bellafiore owns with a partner. The process entails following the seven fundamentals taught by SMB through the entry and exit of a trade and then going on to the next trade and following those fundamentals again and repeating this process for the rest of your trading life. The seven fundamentals are detailed in the book. Mr Bellafiore's emphasis is on this process. He states that making and losing money on any specific trade is not the focus, but following this process IS the focus and making one good trade after another by following these fundamentals is the essence of good trading. You can lose money on a trade, but if you follow these fundamentals and this process, your profit and loss statement will ultimately take care of itself. He compares this to sports teams and the way they practice the fundamentals over and over and then execute those fundamentals in the game. There are plenty of sports analogies here with the implication that an elite trader must go through the same kind of rigorous and disciplined training that successful athletes go through. Having played sports in high school and college and now trading full-time, I have to agree. The book begins with the explanation of this process and the principles of this process are felt throughout the book. Mr Bellafiore is not here to teach some new technical analysis technique, thank God. He basically states that his firm already knows those techniques. That's the easy part, the difficult part is training traders to FOLLOW and trade the patterns that he already knows are successful. This reminds me of the statement made by Paul Tudor Jones that you can give most people tomorrow's Wall Street Journal and they will STILL lose money. It's the difference between hitting perfect shots on the driving range and then executing those same shots in a competitive round of golf. The emphasis here is on the psychological side of trading which, for me, is really all there is. It doesn't really matter how well you can call markets if you are exiting trades with a .20 cent profit, because you are so exited about being right and making a little bit of money, when the target on the trade was a dollar, The emphasis is NOT on being right in your market forecasting skills, but on building the skills to execute each trade correctly. So Mr Bellafiore is stating that being right in and of itself is NOT enough, the trading process is MUCH more than calling markets correctly. Being right has much more to do with ego and pride than making money. So paying attention to the fundamentals and their execution rather than bragging rights about market direction is, for Mr Bellafiore, the STARTING point. And executing these fundamentals is MUCH more difficult than one anticipates and requires YEARS of dedication, sweat and hard work. No wonder there are so few elite traders or, for that matter, elite anything. It's not that correctly calling markets is not important, it is, it's just that forecasting becomes secondary to skill building and discipline. The book is sprinkled throughout with stories of traders, both successful and unsuccessful. I found these stories very interesting and I recognize one of the successful traders from Mr Bellafiore's blog. (A blog that, in my opinion, is worth your time). In one chapter, Mike Bellafiore describes the hiring process at SMB and how difficult it is to choose a person that will succeed as a trader. A Prop firm funds traders that they train and the firm makes money based upon the success or failure of these traders. Later on the author details some of the strategies commonly used by SMB traders. On the surface, these are similar to patterns which I think most traders are familiar with. The difference is in the application of these strategies and for that I think one may need to go through the SMB Training. I started trading before Prop firms became as popular as they are today. If I was just starting out today, I believe this is the route I would take if I was fortunate enough to be chosen. The hiring process is VERY selective. Mike Bellafiore is big on traders getting out there and sharing and exchanging ideas. As most independent traders know, this is a lonely profession. It doesn't have to be, but most traders are in a room full of screens with only their own minds and a few internet feeds. For me, I am happy Mike Bellafiore took the time to exchange his ideas with us. I am currently reading the book for the second time. This is definitely a book worth adding to your trading library.

As an Independent Trader I would highly recommend this book. It is very rare you find a Trading book that gives you a totally different perspective of what it takes to have a successful "career" in trading. Most trading books focus on technicals and others share best practices. But in "One Good Trade", Mike Bellafiore takes you on a journey that gives you an inside look of the Highly Competitive World of Prop Trading and how SMB Capital a leading Prop Trading firm recruits, trains and develops World-Class Traders. Their goal is to have the best training program on Wall Street and the book documents that program. Also, one of their partners G-Man was selected as one of the top three traders on Wall Street under 30. Their other partner Steve Spencer is a graduate of Wharton and is a world class trader in his own right and practices what he preaches. You can catch him every other day on [...] discussing his Stocks in Play and his analysis of the overall market. The book is a must read for recent college graduates who desire to have a successful career in Trading. Also it is a must read for Independent Traders who want to take their game to the next level and become a consistent trader. Dr. Elder's book, "Trading for a Living" was the first of its kind to disuss Trading as a business for the individual trader. "One Good Trade" takes that to the next level and is the first of its kind to discuss the secretive world of Prop Trading and what it takes to build a successful career as a Prop Trader. In "One Good Trade", Mike does a great job explaining the "Edge" that SMB Capital provides. The book is broken into 4 major parts and each part Mike personalizes each chapter with best practices good and bad from his Traders. The real stories are not only interesting but entertaining. Part 1-Inside a Prop Trading Firm, including SMB's people (cast of characters), trading philosophy and culture. Also discussed in great detail is the recruiting, hiring and training program. Part 2-Tools of Success- what it takes to be successful and why Traders fail. Part 3-Getting Technical- Stocks in Play and Reading the Tape (this is a lost art and critical to becoming a consistent trader) Part 4-The Traders Brain- Trader Education and Preparation, Self-mastery of your emotions, Adapting and Mentoring, including Secret Project X. "One Good Trade" is a process you develop that requires focus, patience and discipline. "One Good Trade" is about having a game plan for every trade and executing "One Good Trade" at a time and repeating the process over and over again. If you want to get your MBA in Trading and get a foundation to become an elite trader "One Good Trade" will give you the playbook of what it takes to have a successful career.

One Good Trade is an exceptional read, told from the perspective of an experienced and clearly very successful trader. The book is a very easy read, and is written in a fun and personal tone. I've read well over 50 trading books, and One Good Trade is easily ranked in the top 3 books I've read. I completed it in two days. The book does not rehash boring technical analysis details, pointless anecdotes, esoteric trader psychology concepts, or very specific trading systems that may not be applicable to readers. Instead, Mike Bellafiore relays his own experience and lessons over 12 years of trading, lays out success stories from his firm and successful traders, and outlines the characteristics that are key to being a successful intra-day active prop trader. Mike weaves together essential performance management and psychology without going into unnecessary detail, and sets forth the principles of One Good Trade in a manner that is efficient and to the point. Mike openly shares his perspectives, shares with readers the principles that he coaches and mentors his own traders with, who trade his own money. These lessons have been learned the hard way, and are integrated into SMB's training - yet Mike openly shares this with us. This openness and teaching attitude, and Mike's passion for developing traders comes through clearly from these pages. In such a competitive industry, this is a breath of fresh air, and amidst all of the doom and gloom of HFT and algorithmic trading supposedly killing the intra-day equity trader, Mike brings back a sense of realism - a good trader can live and prosper through anything given the correct skills, focus, mind-set, coaching and continuous attention to the essentials. Trading is a high-performance endeavor, comparable to professional sports as Mike so rightly points out. The beauty of this book is that the principles that Mike applies to teaching and coaching traders can very easily be applied in other businesses, and by anyone trying to develop and excel in a high-performance skill or vocation. I would recommend this to all new, developing and struggling traders - what you invest in learning, and growing your skills is priceless.

It's very readable page turner for a trading book. It's also different from most trading books. If you are looking to get into prop trading I would call it a must read. He really explains a lot about his prop firm and its traders. If I was young (I'm not!) and looking to get into a really top notch prop firm I would memorize this book and really try to get in that door for an interview. The book almost seems like an advertisement to entice applicants. It isn't a nuts and bolts type of book. He does talk about a few setups but that is not the focus of the book. He talks about the firm and its traders and uses uses a great many stories throughout which will be interesting to people interested in trading. This is what makes it an entertaining read without the dryness of many trading books. Like I said no real nuts and bolts but more on psychology and motivation and the importance of hard work and adaptation. Since it has just been recently published there are many examples and stories from very recent times. He talks about HFT and algorithims and how they make trading harder. He also talks about the constant need to adapt your styles as conditions change. These are important ideas to grasp. It is totally about stock trading and I am a commodities guy but trading is trading although some of his examples wouldn't hold true in futures. They are disciples of tape reading, using support, resistance, and momentum. The trading styles described are very similar to what I do. I never considered myself a tape reader but after reading how disciplined tape readers trade I think I am more of one than I ever gave myself credit for. This book is interesting and motivating and like I said if you are looking to get into the prop arena something you should definitely read. It probably won't help your trading but it just may help you get hired by a prop firm.

This is one of the best book I ever read on the markets. Mike guides you into the world of prop trading, explaining in great detail how it is. There is a lot to learn reading this book. While there are only relatively marginal teachings about how to practically trade, there are many advices on how to succeed in this tough world. This is because if you want to know exactly what they do you have to purchase their expensive training programs. I think they are worthy every penny anyway. Reading this book I learned that tape reading is a key skill to make money, even though no one talks about it. It is really a forgotten skill and it is very hard to find who can teach you. There is also an entire chapter devoted to maximizing your profits that is very helpful. There are many concepts you will find only in the best books on trading. Mike explains very well why and how traders succeed and how traders fail, with many many anecdotes about him and his traders. Frankly, I did not expect Mike and Steve, the founder at SMB to be so patient. They really care about the traders they train and would do whatever it takes to make you succeed. Also I did not know how much money prop firms invest on the traders before they become profitable. They think a trader is a very valuable resource and are willing to invest a lot of time and money on the worthy candidates. SMB is really a top notch firm and I know many people would kill to be there, including me. The book is well written and very funny to read. I laughed hard many times. There are some typos that need to be corrected.

I read yiyr other book *The Playbook*, both are good. The take home message is, chose your trading style, perfect it under expert Guidance and then rise! Allocate at least 4 years to this process at the least. Again, good read Bella 👍

My first read through of One Good Trade helped give me the confidence to start intraday trading full time in April 2011. Today, August 11th 2011, I just finished my 11th profitable day in a row during one of the most volitile market periods ever. For about a six months before reading One Good Trade I had intensely searched for an investing style that I could pour myself into full-time having handled my own investments very much part time over the last 18 years using more medium timeframe William O'Neil style of investing mixed with some options trading as well when I had the spare time. Over my 18 years of investing I have reads dozens if not hundreds books on everything ranging from Graham and Dodd value investing to Trend Following, commodities, options, futures and about anything else you can think of. For me One Good Trade is the book I wish I could have had 18 years ago and pretty much skip most of the rest. It is not because this book hands you a clean 10 point check list of what you need to do in a step by step fashion to execute profitable trades as an intraday trader. While there are many great strategies and some ground breaking concepts such as stocks-in-play covered within, cookie cutter strategies are not what this book is all about. For me One Good Trade is about learning how to think for yourself as a trader. If you read a book that does nothing but show you 10 different chart setups and then think you are going to go conquer the market, well, good luck because you will get crushed. Many of the reviews that feel this book falls short seem to think intraday trading should have a simple recipe, or that there is some universal magic key to the trading kingdom. Having a diverse playbook is important, and there are some universal concepts everyone should study, but if you do not learn to think for yourself and adapt to the ever changing markets you will be one of those who hands over your hard earned dollars to mother market. I have now read One Good Trade cover to cover 3 times and key sections 10 times or more. As I have been developing my trading skills and gained more experience tangling with the market on an intraday basis new concepts come alive in re-reads that did not stand out before I took a few lumps from the markets. There is no substitute for having money at risk with every tick of the market to create focus on what is important to learn, and make reading key sections of a trading book 10 times anything but mundane. Intraday trading is definitely not for everyone but for those looking to give it a shot I recommend first reading this book and then once you start trading, review every trade you make after the market close every day. The areas you need to work on will become glaringly obvious. Once you fix an issue, the next greatest weakness in your trading will be revealed and must be conquered and so on in a perpetual growth process. Each new trader will have a unique maze of issues to navigate on the path to consistantly profitable trading even though we all work in the same market. One Good Trade gave me the framework and tools to successfully tackle this journey on my own sitting at my work station in Florida. For those that are ready to give it a shot this book is priceless. One bad trade in the market can cost you more than the price of this book, and this book can shorten your learning curve enough to save you from hundreds of bad trades on your path to consistent profitability.

First of all this is Bryan and not Brooke! I had to ask my wife to borrow her Amazon account so that I could write a review. Apparently creating an Amazon account is not enough to write a review, they found a way to monetize even that part of their business (hence the nearly $800 stock price). Sarcasm aside, I read the reviews of One Good Trade prior to reading the book and then again upon completion. I have never been someone to take the time to write a review for a book I read, but given my affinity for the book I felt compelled to offer my perspective. To give full disclosure, I worked on Wall Street on a prop desk during one of the greatest times in history ( Late 1990s- Early 2000s) and I enjoyed great success where I was able to quickly become a CPT ( Consistently Profitable Trader). Similar to the experience the author describes in the book, I never received the in-depth training that could have given me a better chance of success. I succeeded through hard work, asking a lot of questions, improving daily, and being surrounded by other talented individuals. I am sure there was some luck involved, but my point is that this book provides valuable insight into not only the job of a professional trader but the experiences, thought process and most importantly challenges that will surface if one chooses to embark on the challenging career of a prop trader. I found the anecdotes to be poignant and at times amusing. I found One Good Trade to be enjoyable and more importantly educational. I was shocked how much I learned about trading that I either forgot or never knew. The author does a nice job of explaining things in layman's terms while still challenging experienced traders. I read the book in a few days and enjoyed it so much that I had my wife purchase The Playbook which I read the following week. Since I won't be writing a second review, I will tell you that as helpful as One Good Trade was, The Playbook was even better. The Playbook provided an updated and even more relevant insight into the discipline, patience and work ethic required to succeed in the highly competitive world of proprietary trading. Lastly, I will say that the author comes across as more of a coach than a critic. It seems that he really does want to help people and see them succeed. It is a shame that some people couldn't find something positive to enhance their trading or understanding of a prop desk from the book. I highly recommend it for anyone with a positive attitude that is looking to improve himself/herself. If you are a novice you will learn a ton. If you are an experienced and successful trader then hopefully you will take away one concept that will make you even better. Enjoy.