Co-Founder @SMBCapital and https://xitter.cf/t.co/SF1XnbDLEy Author- One Good Trade and The PlayBook Board member- @Traders4ACause and @Impact_Comp
New York, NY
Joined June 2009
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To learn 3 real-world setups that our traders use, including the simple setup that we teach all our new traders, and the setup that turned one of our traders into a 7-figure big money earner, check out the free webinar we're currently running. bit.ly/2XaOWmB
Shark, highlighted in the most recent Market Wizards, put it best:
"Add one setup for $10k, another for $20k, learn one from someone else for $30k... pretty soon that adds up."
Build a diversified business. Multi-strategy trading turns small edges into an 8-figure career.
#PropTrading #Trade #TradingMindset
One of the major advantages of being in a collaborative environment is that you can talk to other traders, which can be beneficial in many ways, including idea generation. - Kenny Sharkness @smbcapital 140/n lnk.to/marketwizardsnextgene…
Develop different PlayBooks for different regimes. 👇👊
When many traders struggle with performance, it's a good sign that markets have changed--and that we need to adapt! Here's a best practice for mastering shifting markets: traderfeed.blogspot.com/2026… @MikeBellafiore @smbcapital @sspencer_smb @TheOneLanceB @SMBrecruiting
In our latest video, I break down our desk's exact 8-Point Breakout Trading Blueprint:
1. A 9/10 Level on the Daily Chart
2. Elevated RVOL
3. Volume Ignition on the Break
4. Reading the Tape
5. Market & Sector Tailwinds
6. A Defined Invalidation Stop
7. Adding to Winners
8. A Defined Exit & The Scratch Rule
#DayTrading #PropTrading #TradingStrategy #BreakingNews
How to Trade a Breakout Without a News Catalyst (Step-by-Step Prop Desk ... youtu.be/M1o0XqCaDiE?si=BujX… via @YouTube
Mike Bellafiore retweeted
After posting this about Jon, I started thinking about all the wonderful people I've met in real life over the years whom I never would have known if not for this platform.
Social media gets a bad rap, and often deservedly so. But for me, it's been a genuinely life-changing experience.
I'm sure I've missed many people here, and there are still so many more I'd love to meet in person, but I'm grateful for all the people and connections that have come out of it.
@jfahmy
@JC_ParetsX
@sstrazza
@SJisrael
@alphatrends
@howardlindzon
@ppearlman
@SeanHasOptions
@StockMKTNewz
@GavBlaxberg
@CalebFranzen
@OMillionaires
@ivanhoff
@awealthofcs
@michaelbatnick
@Downtown
@AnneMarieTrades
@jimiuorio
@EddyElfenbein
@JeffMacke
@AlmanacTrader
@pointsnfigures1
@ToddSullivan
@TheBasisPoint
@MikeBellafiore
@NickSchmidt
@NicSherrod
@BlakeMillardCFA
@DKellerCMT
Thinking today of @JBoorman, a friend of mine and of many in this community, who passed away six years ago today.
Mike Bellafiore retweeted
🚨 James takes the PlayBook hot seat. 🚨
Will he pass?
Join Bella for SMB Inside Access on Wednesday, October 21 at 1:30 PM Eastern.
James is breaking down his Day-1 Earnings Gap-Down Reversal in $INTU from August 26, 2026: +3.06R on A risk.
A green P&L is only part of the story. On our desk, we grade the process.
The benchmarks:
80 → Junior Intern
85 → Senior Intern
90 → New-hire standard to earn a professional trading seat
We’ll put James’s trade through our 10-part PlayBook scorecard live—the mentoring process SMB traders have used for over 15 years.
Here’s what we’ll review:
• The earnings gap-down: How a guidance reset and a 9.5% pre-market gap created a reversal setup near daily support.
• The VWAP targets: How the 2-Day and Week-to-Date VWAPs shaped his profit-taking plan.
• Confirmation vs. anticipation: Starting with B risk on a volume-backed session VWAP reclaim, then adding to A size after the $327.50 pre-market high broke.
• The fast exits: James sold 15 of 20 shares into the VWAP targets in just 98 seconds. Disciplined scaling—or too much, too soon for an A-conviction trade?
• The technology: Using standard deviation overextension flags and 50-minute EMA trails to make scale-outs and runner stops more systematic.
Bring your questions. Come support James. See what grade his process earns.
📍 SMB Inside Access — The PlayBook
⏰ Wednesday, October 21 | 1:30 PM Eastern
Join us:
smbtraining.com/blog/smb-ins…
One Good Trade.
Mike Bellafiore retweeted
From opening drives to exhaustion reversals, we walk through six momentum trades and how to read the urgency behind each, so you can connect stock selection, setup and execution.
youtu.be/reWtEMpWlpA
Mike Bellafiore retweeted
Everything works sometimes, and nothing works all the time. - Kenny Sharkness @smbcapital 134/n lnk.to/marketwizardsnextgene…
I would read it.
It would be great.
At a minimum it would be hands down the funniest trading book ever written. 👇👊
#Fahmywisdom
I got another email from a big publisher asking me to write a book. While I'm always humbled by these emails, I have zero interest in writing a book. Almost everything I've learned has already been written before. The best thing I can say is work on your mental and work on your confidence. It's takes time, a lot of patience, tons of hard work, and obviously a little luck and grace from above. Unfortunately, most people don't want to put in the work. Trust me, it's worth it. Very few jobs will teach you more about yourself than trading.
Mike Bellafiore retweeted
Austin gearing up to be quite the event
If you in Texas area make sure y'all get out there and support @Traders4ACause
Trade well. Give back.
Those words hang on the wall at SMB Capital. We’re bringing that spirit to Traders4ACause Austin 2026, and we’d love to see you there.
Come meet Mike Bellafiore, SMB’s Co-Founder, and Jeff Holden, our Head of Trader Development, in person.
Talk trading with Bella:
Bring your toughest questions about improving your performance and sharpening your edge. Hear stories from the desk about who is doing exceptionally well at SMB right now—and why.
(Fair warning: Ask Bella about youth baseball training only if you have an hour to spare.)
Talk recruiting with Jeff:
Curious about earning a seat on a prop desk? Ask what it takes to get hired as a full-time trader at SMB or land an internship.
Whether you’re looking to break into prop trading, take your independent trading to the next level, or connect with top proprietary and independent traders while supporting a great cause, come join us in Austin.
Register and learn more:
traders4acause.org/austin26/
If you’re coming, make sure to say hello!
Come meet Jeff and Bella in Austin 👇👊
Trade well. Give back.
Those words hang on the wall at SMB Capital. We’re bringing that spirit to Traders4ACause Austin 2026, and we’d love to see you there.
Come meet Mike Bellafiore, SMB’s Co-Founder, and Jeff Holden, our Head of Trader Development, in person.
Talk trading with Bella:
Bring your toughest questions about improving your performance and sharpening your edge. Hear stories from the desk about who is doing exceptionally well at SMB right now—and why.
(Fair warning: Ask Bella about youth baseball training only if you have an hour to spare.)
Talk recruiting with Jeff:
Curious about earning a seat on a prop desk? Ask what it takes to get hired as a full-time trader at SMB or land an internship.
Whether you’re looking to break into prop trading, take your independent trading to the next level, or connect with top proprietary and independent traders while supporting a great cause, come join us in Austin.
Register and learn more:
traders4acause.org/austin26/
If you’re coming, make sure to say hello!
Mike Bellafiore retweeted
Time to give this one a re-read
@MikeBellafiore
I read trading books over and over again.
Why? I always find another gold nugget with each re-read.
Traders are pattern recognition athletes. 👇👊
When we review not only our trades but the opportunities we failed to trade, we become better pattern recognizers: traderfeed.blogspot.com/2026…
Want to know the ultimate test of a trader?
Hint: It isn’t how much you make when the market is easy. It’s what you do after a devastating loss that completely defines your career. [02:39]
This month, one of our top trading desks at SMB Capital took a tough loss. They were long a position when an unexpected, intervening event dropped out of nowhere and hammered the stock.
The damage? Down over $3 million. [00:13]
In prop trading, that plunges a desk straight into what we call "the hole" [00:13]. Before these guys see another dollar of payout, they have to grind back every single dollar of those millions just to get back to flat [00:23].
Bad beats happen. Losses happen. It flat-out sucks, you feel it right in the pit of your stomach, and the pain lingers [02:32].
It is what you do after the loss that matters—not the loss. [09:10] The $3M deficit matters very little in the long run compared to how the team and its individual contributors respond right now [02:49].
In our latest video, I broke down the exact 6-step blueprint this elite desk is using to climb out of their hole [03:26]:
1. Run a Forensic AAR (After Action Report): Stripping emotion from P&L [03:42]. The team leader didn't bury the loss in a large pepperoni pizza and a bottle of red wine [04:47]. He delivered a candid, constructive autopsy: owning his mistakes, analyzing hedge execution, and praising the quick-thinking put purchases that saved another $2M in damage [04:20].
2. Collaborate Across the Desk: As Ray Dalio observed, viewing the market through one pair of eyes means missing critical information [05:04]. On our desk, an impressive junior 7-figure producer respectfully pushed back on the star's self-critique, arguing the entry add was technically sound and purely hit by an exogenous intervening shock [05:32]. That open debate is where real edge compounds [06:01].
3. Bring the Trade to the Firm Crucible: The desk brought the trade to partners, risk managers, and mentors like @theonelanceb [06:13]. Risk reviewed limits, senior partners coordinated tech solutions for faster news execution, and coaches challenged the floor [06:23]. A painful rip becomes rocket fuel when your entire firm has your back [06:50].
4. Chip Away with One Good Trade: As Market Wizard Marty Schwartz famously said, greatness isn't hitting home runs; it's stringing together singles and doubles [07:02]. No desperate YOLO swings. The team leader set the tone: "I am just going to chip away at these losses." One Good Trade. And then One Good Trade. And then One Good Trade [07:25].
5. Grounded Veteran Optimism: As Colin Powell noted, "Perpetual optimism is a force multiplier." [07:49] The senior leader reminded the desk that drawdowns are temporary, he's clawed out of every hole before, and each slump made him a better trader [08:09]. Veteran leadership eliminates panic [08:26].
6. Game Plan High-Conviction Catalysts: Don't predict—anticipate [08:37]. The team mapped out high-opportunity environments ahead (like the Anthropic IPO and potential Q4 momentum) to deploy asymmetric risk when the setup aligns [08:48].
The market will knock you down, but your career isn't defined by the brutal blow—it is defined by the grit, discipline, and character you display when you stand back up.
It is what you do after the loss that matters.
#DayTrading #PropTrading #SMBCapital #TradingPsychology #OneGoodTrade
How to Recover from a big loss (as quickly as possible) youtu.be/djDZP9lvVqc?si=qCeR… via @YouTube
Mike Bellafiore retweeted
🚨 Desk Alert: Today’s PlayBook Review — Nolan Takes the Hot Seat 🚨
Today we are back for another mentoring session that our traders have used for over 15 years to build their trading business—the PlayBook.
Nolan Lennon is stepping into the hot seat today to deconstruct a live setup from his trading ledger: The Day 2 Play in $WFF.
Nolan was a traditional hire for us—he interned with us in college, did two separate internships, consistently stood out, and earned a full-time offer to join our desk. But because Nolan is a new hire, the bar is exceptionally high.
I have graded hundreds of these presentations over the years. On our desk, 80 gets a Junior Intern passing grade, 85 is the Senior Intern benchmark, and 90 is the line required for new hires. Today, we will grade Nolan using our 10-point scorecard for 10 elements of The PlayBook.
What You’ll Learn Today:
• The Low-Float Day 2 PlayBook: Why low-float runners trade in distinct cycles, and how a stock that "should be dead" after a massive Day 1 run can trap early shorts and trigger an explosive Day 2 continuation squeeze.
• Confirmation vs. Anticipation on Opening Ranges: Nolan identifies a clean Opening Range Breakout (ORB) on Day 2. We’ll examine whether he waited for volume to confirm the reclaim or fell into the trap of anticipating before the tape gave the green light.
• Trading Limit Halts (LRP Bands): Low floats on 10% limit bands demand unique tape mechanics. Nolan walks through how he navigated LRP halts—and I will challenge him on whether scaling out 40% on the first LRP up left way too much R on the table.
• No More Piker Sizing on A+ Setups: When a stock trades over 146M shares on Day 1 and continues to hold elevated RVOL with under 1% short interest, how do you size it? We’ll look at whether Nolan sized up to his conviction or stayed in hesitant "C-tier" risk.
• Custom Technology & Range Breaks: Nolan shares how he utilizes custom scanners for high dollar-volume runners under $10, LRP montage tools, and automated Range Box tech. We’ll see how systematizing your screeners prevents you from missing moves.
Get off the sidelines, come support Nolan as he takes the hot seat, bring your questions, and let’s see what grade he earns today.
Will Nolan pass?
📍 Where: SMB Inside Access — The PlayBook
smbtraining.com/blog/smb-ins…
⏰ When: Wednesday 1:30 PM EST
One Good Trade,
Bella
To build any business from scratch requires a bit of hustle. 👇👊
Michael Bloomberg carried four drinks to Merrill Lynch for nearly a year. They still almost rejected him.
Two coffees and two teas, one of each with milk.
He'd walk into their offices at 6:30 or 7 a.m.
“I only drink tea.”
“Ah, I have tea for you.”
Pause at 1:21. Nearly a year in, they were about to turn him down. Listen to the terms he proposes.
Before your next pitch, give the buyer a way to try it without being locked in.
Do you have a growth mindset as a trader? 👇👊
Very important: The real reason developing traders fail is not a lack of motivation, but the wrong kind of motivation: traderfeed.blogspot.com/2026…
Mike Bellafiore retweeted
Very important: The real reason developing traders fail is not a lack of motivation, but the wrong kind of motivation: traderfeed.blogspot.com/2026…
If I wrote another book, I would call it One Great Trader. And this would be the guts of the book 👇👊
One Great Trader: The 12 Keys to Market Greatness youtu.be/MsuB2-J8t-E?si=umJv… via @YouTube
Mike Bellafiore retweeted
So many of us in the early stages think that simply adding size can solve our problems, which is a disastrously flawed approach.
Increasing risk amplifies whatever you are doing, whether it be problems or opportunities.
Refer to this excerpt by @MikeBellafiore from his book, "The Playbook"
