THREE massive advantages of having a trading buddy

Let’s face it, trading can be a lonely occupation sometimes. Along with the hope of picking up a “hot tip”, this seems to be a key reason why trading forums are so popular.

Unfortunately, many people leave such forums almost as quick as they join them, simply because many users are not particularly supportive and often seem to be fuelled by ego-driven posting.

So, understanding that there are benefits from connecting with other traders, another option we’ve seen in action is to take on a trading buddy (or even as part of the Trader IQ community chatroom). This might be someone or some people you know who have shown an interest in your battle against the markets, and they need not be the same level of experience as yourself. Indeed, it may be that they are only just beginning. But that shared experience can create a difference.

We’ve possibly identified THREE significant positives, and how trading buddies can not only increase your level of enjoyment when trading, but also reduce that “alone” feeling, and even potentially impact positively on results.

Consider these three:

1. Increased Accountability

The very fact you have someone close that you can share your experiences with gives a layer of accountability that you will never get when you are trading without someone else knowing what you are doing.

It’s easy to stray from whatever your trading “straight and narrow” is when no one is there to know. Logically, if you are sharing your experience of trades, those that go with you and those that don’t, there is one more reason to trade more consistently with your plan.

Beyond direct trading, there’s also the follow through in learning and system development that can be positively impacted upon by having someone else around.

Recognising the potential benefits of this layer of accountability is why many traders seek out a coach and invest thousands of dollars in such.

2. Shared learning and experiences

The benefit is based on the idea that “Two heads are better than one”. Whether it be a theoretical trading concept, understanding and testing a trading indicator that you are considering using, or simply having someone on hand to encourage and support you, or even celebrate when things go well, a trading buddy can positively impact all of these.

3. More efficient and effective trading system development

One of the critical tasks you face as a trader is to develop the systems that support your trading decision making. A staggering number of traders have no or incomplete trading plans, and no other systems in place that many believe are necessary.

Additionally, there’s the obvious benefit of measuring the success or otherwise of such systems and having a critical mass of trades as evidence that system changes may be useful.

Developing and testing systems together and getting evidence more quickly with two people or more working on getting that critical mass of trades are definite positives for having a trading buddy.

Making your trading buddy happen

1. Get one

There are some advantages to having someone local (although much can be done online) who you can physically meet. This can not only be more enjoyable but more productive. Ideally, someone you already know and whose opinions you generally trust would seem logical. Experience is less important than the above as we can help (see below) in bringing someone up to speed.

Trader IQ have taken this to the next level…we make it easy with our TIQ community chatrooms…ALL members can be part of this.

1. Set some ground rules

Any relationship needs them! It doesn’t have to be a formal session, just a simple ‘how can we both make this work’ conversation. Documenting what you’re doing and writing plans for action can always help get the most out of it for both of you.

We see some great potential advantages for you and your trading buddy(ies) and, of course, will facilitate that relationship through education and support as much as we can.

Your next step is to consider whether the advantages we have discussed would be right for you and of course if they are, take action.

IF you are interested in membership of the Traderiq community this is a free add value to our "Mindset Mastery" course..you can find out more HERE

Mike Smith

CEO Trader IQ Pty Ltd

Disclaimer and risk warning

Trader IQ (Trader IQ Pty Ltd ACN 646941031) is a Corporate Authorised Representative (1292685) of Network Influencer Pty Ltd (AFSL 282288).

Trader IQ provides educational materials and courses relating to trading financial markets. This may include the supply of information about securities and derivatives markets and the broader economic environment that may influence such. You must do your own due diligence on anything you see or hear on this site and any online materials we publish. Trader IQ provides general advice only and does not make any recommendations in relation to your personal financial circumstances or investment needs.

Positions taken in highly leveraged and derivative products including options, and Contracts for Difference (CFDs) carry the risk of loss greater than your initial investment in that position. Share trading also involves a high level of risk and any of the above may not be suitable for all investors.

We recognise, and have as a foundation of all we teach, the indisputable need for ALL those who trade financial products to adhere to strict risk management practices. This will include the development, execution and consistent review of an evidence-based trading plan based on you as an individual trader.

You should obtain investment advice from a licensed investment adviser before making any investment decisions. Trader IQ and any agent appointed by Trader IQ will not accept liability for any loss, damage or expense incurred or suffered by you if you rely on any information provided in making investment decisions.