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.

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.

I bought this book based on a comment from a trader I respect but who hadn't read it either. I almost stopped reading when the author said Hardball with Chris Matthews was his favorite political show, thinking no intelligent person gets their politics from Chris Matthews. But when he said the Yankees were his favorite baseball team I decided to give him the benefit of doubt. :) I'm glad I did. Let me say this is not a book for a beginner. A lot of the terminology won't be understood by those just beginning to trade. But nevertheless I believe its a good book, one I plan to keep on my shelf and re-read. The author focuses exclusively on day trading. By day trading I mean trades that are primarily entered and exited the same day. His perspective is that of a "prop trader" or a trader who trades for a proprietary trading firm, i.e. a company who hires and trains traders to trade with the company's money. This book will not give you strategies or techniques that you can start trading with in the morning. What it will give you are more substantive things that I would call principles or foundational ideas. It also provides a lot of experiences of day traders, both of those who make it and those who don't. I believe a person could really gain from this book if they focus on what the author is teaching rather than about what tool or technique they might pick up from it. I like his attitude that the traders job is to make one good trade, not a trade that makes money. If one's focus is on just making a good trade, profits will come as a natural result. Based on my own experience if one focuses on making money, this affects the emotions which tend to destroy good trades and create poor trades. All in all, I enjoyed the book and am glad I bought it. If you're looking for a good book on trading that is an enjoyable as well as enlightening read, I would recommend this one. But if you're looking for a book that will explain the latest technical analysis technique or the hottest trading methodology, this is not it.

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.

Since I don't really expect to learn anything overtly (at least for less than $100), the main thing I'm looking for when buying a trading book is war stories...something to unwind with after the trading day is done and, for a solitary trader like myself, something that makes me feel like I'm in touch with the broader, high-energy world of Wall Street. This book has that in spades. A good trading book will also clue a reader in when he needs to make an adjustment, comfort and remind him during a dry spell that the long term is +EV, and present him with fresh ideas which can result in tweaks to his game plan or even wholesale changes in philosophy. But there's something that One Good Trade does that I can't recall any other trading book doing..... OGT really challenges the reader to stretch himself and push against his comfort zones. In fact, it's so bad that I can't read more than a few pages at a time before I get so full of energy that I have to go outside and pace for twenty minutes to work it off. 1. I'm quite content to trade from a pre-selected basket of stocks....OGT challenges me to create a fresh list of `Stocks In Play' each day - giving my trades the best chance for favorable "pin action". 2. I'm quite content to operate within the timeframe of the swing trader and milk my 2+ profit factor until the cows come home....OGT challenges me to train myself to operate within the intraday timeframe in hopes of attaining a 10+ profit factor. 3. I'm quite content to conduct my workday in solitude...OGT challenges me to consider laying that comfort aside and trying to land a spot on the prop desk, where teamwork and mentoring might make me more effective than I could hope to be on my own. Or perhaps heading to NYC for a multi-week training session in which I'd be shoe-horned in with a host of high energy folk and exposed to a playbook of different trading techniques. Bottom line: As a trader I've evolved to the point where I've moved from focusing on rate of return to emphasizing the dollars-gained to dollars-lost ratio. I hate givebacks. So when I read about one of the traders on Bellafiore's desk nicknamed the Yipster who has "maybe one negative day a month" I can only say Wow. The author himself states that he is negative on only about 10% of his trading days. And step aside Joe DiMaggio, there's a guy on the desk named ZMush who refuses to swing the bat until one of his favorite setups comes along. He's been profitable for over 500 consecutive trading days. One Good Trade has opened my eyes that there are much higher levels of accuracy out there than I would have otherwise thought attainable. The question is ...is one willing to dig for it.

A very thought provoking book! Admittedly, when I first heard about this book- I read the reviews posted here- but not the positive ones, I was more interested in any negative reviews. Their opinions were most valuable to me. If I read that the "newbies" really liked the book, than I would know, this book would not be for me. I've read over 100 books from the so called "gurus" of trading, with the same old "cookie-cutter" approach to technical analysis and setups. For the most part, as I learned the hard way, they don't work. In my experience, anytime you read one these books and you can't wait until the next trading day, so that you can out try out your newly found setups- grab on tightly to your wallet. Because a fool and his money shall soon depart. But "One Good Trade" is not like that. The book delves deeply into the process of what it takes to develop into a great trader- and it does take time. Any good book on trading should cause you to think deeply about what your doing and how you can improve your daily preparation and decision making process during the trading day. Mr. Bellafiore does a master job with this. Before I decided to write this review, I did go back and read the positive reviews. So I am not going to rehash the fine, insightful thoughts that were presented. But what I will say, is that I enjoyed immensely his discussion about the use of "If-Then" statements in the trading process. Thinking and meditating on this process alone, for me, was in itself worth for more than the price of the book. Incorporating this thought process into your thinking, greatly enhances your trade preparation and your ability to react and adapt to present market conditions. From my perspective, trading is not a science- it is an art. Thus, you have to be able to think and react on your feet, as it were. Now for the individuals that wrote reviews, that showed that they didn't get the sense of or the value of this book, I urge you to re-read it more thoughtfully. Because everything in this book is the very essence and foundation of what you need to know to be successful. If you don't understand something, relentlessly, find out the answer for yourself, what it means. Thanks again to Mr. Bellafiore (and his family) for sacrificing his time to write such a fine book.

Before I purchased One Good Trade, I read good and bad reviews so I could make a rational decision to buy it. I read some bad reviews about generalities, sports references, and a laid back writing style. When I read anything, I try not to judge it based on its style but whether or not I gained value from reading it. I believe it's the authors prerogative to write however he would like, and I actually found his colloquial manner and sports references easy to read and pertinent. One Good Trade is definitely the first of it's kind and different. Mr. Bellafiore gives you an inside look into the otherwise secretive world of proprietary trading. The title sums up what the book delivers: Focus on the process, not on the result, and the result will follow. You make one good trade after one good trade and your P/L will ultimately shine through. Mr. Bellafiore does a great job of conveying his firm's culture of skill development. I like that SMB capital doesn't just focus on the bottom line. Their entire training process consists of nurturing elite performers and providing what they need to succeed. My favorite parts of the book were also the anecdotes describing each trader that went through their firm, and whether or not they succeeded and why. There are chapters about the best of the best that you will want to read over and over again in order to emulate them. But you can't have the sweet without the sour, so Mr. Bellafiore describes in detail how certain traders failed, and what you can learn from their mistakes. I also learned a lot about the hiring process in this book. You will learn about the ideal candidate and also what to stay away from. My long term goal right now is to get hired in a prop firm after graduation, and now I have a guide to show me the way. I'm a passionate student of the markets and also in college and I found One Good Trade quite refreshing in a genre full of technical analysis and psychology. Not that technical analysis and psychology are unimportant, but I feel there are treasure troves of information out there already. You will learn from this book that trading success is ultimately your own responsibility and that a lack of resources is hardly an excuse.In my opinion, prospective, new, and experienced traders alike will find great value in One Good Trade.

Habla de temas importantes para todos los traders. Es una gran guía sobretodo porque abarca temas desde ejemplos de traders hasta ejemplos de trades. Creo que es un libro que todos debemos leer para conocer del mundo de los prop trading

I have the audio, the kindle version and the physical. A must have. Get practical use it

Excellent novel of authors experiences

Ottimo libro.

It‘s excellent book for all traders who wants to succeed