Mike Bellafiore
13.9K posts
@MikeBellafiore
Co-Founder @SMBCapital and https://t.co/SF1XnbDLEy Author- One Good Trade and The PlayBook Board member- @Traders4ACause and @Impact_Comp
IF CLAUDE/AI IS SO USEFUL, WHY ARENT PNLS GOING UP? I just made an important point on the @smbcapital call. You can’t go a day without reading tweets about traders using Claude. For 6 months now, Claude has been the talk of many trader calls. Yet from what I’ve seen, it’s not translating to pnl for most traders. Why? Because almost always, more data and information is NOT the constraint. The traders that outperformed in April did so because of their systems and execution. It isn’t that Claude and AI shouldn’t be used or isn’t at all useful. But AI and Claude can become a distraction AWAY from the actions and changes that actually matter and translate into PNL. If I were a betting man, Claude might have improved workflows for traders, but net, it has probably reduced trader pnl through distraction away from what matters.
Start thinking of yourself as an elite trader. In everything you do, do what an elite trader would. Sleep like an elite trader. Prepare like an elite trader. Review like an elite trader. Collaborate like an elite trader. Build technology like an elite trader. Eat like an elite trader. Execute like an elite trader. Risk Manage like an elite trader. Exercise like an elite trader. Research like an elite trader. Build a PlayBook like an elite trader. Be open-minded like an elite trader. Think of yourself as an elite trader.
@MikeBellafiore I took detailed notes on this presentation. So great! SMB has helped me maintain consistency for the past 8 months trading options. Not life changing money but achieving consistency is the first step.
You are meant to do something great! Stop trying to "fix" your flaws to become a better trader. What if the secret to elite performance isn't patching your weaknesses, but weaponizing the strengths you already possess? In this masterclass from the SMB Trading Summit NYC 2026, Dr. Brett Steenbarger—the world’s leading trading psychologist—flips the script on conventional wisdom. He argues that the move from "struggling" to "Market Wizard" isn't about pathology; it’s about Positive Trading Psychology. Leveraging Your Signature Strengths The core of Dr. Steenbarger's philosophy is that trading success is an expression of your existing character. Instead of trying to mimic another trader's style, you should identify what you have already done "greatly" in life—whether in sports, business, or relationships—and use those same skills as the foundation for your trading edge. Identify Your Core 4: Pinpoint your top signature strengths (such as curiosity, temperance, or grit) and use them to define your strategy. Curiosity as a Driver: The most successful traders are often driven by an "entrepreneurial curiosity" and a love for the discovery process, rather than just the financial outcome. Avoid Over-utilization: Be aware that over-relying on a strength (e.g., independence) can turn into a weakness (e.g., refusing to listen to market data). 🔄 Breaking the Bubble While identifying your internal strengths is the foundation, elite performance cannot be built in a vacuum. To truly scale, you have to dismantle the most common trap in this industry: World-Class Isolation. 🤝The Power of Teamwork and Collaboration A recurring theme throughout the talk is the danger of "world-class isolation." Dr. Steenbarger argues that learning a high-performance skill like trading in a vacuum is nearly impossible, as the learning curve is too steep to navigate alone. "Each One Teach One": Modeled after medical school rotations, traders should form "virtual teams" to share ideas, review performance, and provide mutual feedback. Compounding Learning: In a team of six, you don't just learn from your own mistakes; you learn from the combined experiences of the entire group every single day. Grounding in Training: Much like surgical residents who don't go "on tilt" during high-stakes procedures, traders need repetitive, supervised training until their execution becomes second nature. 🔄 Rewriting the Ledger Once you have your team in place, the next step is changing how you measure your progress. You have to move away from a journal that only tracks failures and start building a blueprint for success. 📝Positive Journaling and "Reverse-Engineering" Success Standard trading journals often focus exclusively on mistakes, which can inadvertently damage self-confidence over time. Dr. Steenbarger advocates for a "Reverse-Engineering" approach to journaling that prioritizes your best work. The "One Good Thing" Rule: Every day, identify one thing you did well (even on a red day) and commit to building on it tomorrow. Study Your Winners: Analyze the patterns, mindset, and planning that went into your "A+" trades to create a blueprint for your success. Acknowledge and Solve: Identify one mistake per day and create a concrete, executable solution to ensure it is corrected rather than repeated. 🔄 The 90-Day Architecture But insight is just the beginning. To turn these psychological shifts into permanent "muscle memory," you need a protocol designed for neurological change. This is where the 90 and 90 Rule comes in. The "90 and 90" Rule for Lasting Change To turn a new behavior or a psychological reset into a permanent habit, Dr. Steenbarger recommends the "90 and 90" approach, inspired by recovery programs. 90 Days of Consistency: Commit to a single process change (like position sizing or a new exit rule) for 90 consecutive days. Repetition Cements Change: Emotional arousal acts as the catalyst for change, but only daily repetition makes that change a natural, effortless part of your process. Use Emotional Arousal: To break through deep-seated negative patterns, you must create an emotional rejection of the behavior (e.g., "FU therapy" for negative self-talk). 🔄 The Holistic Edge Finally, the most resilient traders understand that while trading is high-stakes, it cannot be their entire identity. True performance longevity comes from Life Diversification. 🌐Life Diversification and Vision A major psychological "leak" occurs when a trader's self-worth is tied entirely to their daily P&L. True resilience comes from having a diversified life and a vision that extends beyond the numbers. The PERMA+ Framework: Focus on Positive emotion, Engagement, Relationships, Meaning, and Accomplishment outside of the markets. Vision Over Goals: While goals provide direction, a "Vision" (like a higher purpose or a commitment to a cause) provides the inspiration needed to stay disciplined during drawdowns. Calendar Commitment: If a habit or a self-care activity isn't in your calendar, it isn't part of your professional process. At SMB, we hope that at least one of these ideas from the greatest trading coach in the US, will help you recognize the possibility about your trading journey...You are meant to do something great! #tradingpsychology #proptrading #trader Surprising Advice From World’s #1 Trading Psychologist (Dr. Steenbarger) youtu.be/K2e1Sdpfv7s?si… via @YouTube @steenbab
