News & Analysis

3 significant benefits of having an FX trading buddy

March 5, 2019

By Mike Smith

Let’s face it, trading can be a lonely occupation sometimes. This is, along with the hope of picking up a “hot tip” appears to be a key reason why trading forums appear to be so popular.

Unfortunately, many people leave such forums almost as quick as they join simply because many are not particularly supportive and often seem to breed ego-driven posting.
So, understanding that there are benefits from connecting with other traders, another option we have seen in action is to take on and foster the idea of a “trading buddy”.

This could be someone you know, who has shown an interest in what you are doing in your “battle against the markets”, they need not be the same level of experience as yourself (indeed it may be they are starting), but that shared experience that van create a difference.

There may be THREE significant positives as to how this can not only increase the level of enjoyment when trading but reduce that “alone” feeling, and even potentially impact positively on results.

Here they are to consider:

1. Increased Accountability
The very fact you have someone who is close to you, who you share experiences with gives a layer of accountability that you will never get when trading without someone else knowing what you are doing.
It is easy to stray from whatever your trading “straight and narrow” is, when no-one knows what you are doing. Logically, if you are sharing your experience of trades, those that go with you and those that don’t, it is one more reason to trade with your plan more consistently.

Beyond direct trading, there is follow through in learning and system development that may be positively impacted upon through having someone else around.
Finally, in many ways recognising the potential benefits in this layer of accountability, it is why many traders seek out a coach and invest thousands of dollars in such.

2. Shared learning and experiences
This 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 or celebrate with when things go well, a trading buddy can benefit 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 nor the other systems in place that many believe are necessary.

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

With both of these, developing and testing systems together, getting evidence more quickly with two people working on getting that critical mass of trades, comprise a definite plus of having a trading buddy.

Making your trading buddy happen

a. Get one
There are advantages of having someone local (although much can be done online), to physically meet can not only be enjoyable but also productive. Ideally, someone you already know and whose opinion generally you trust would seem logical. Experience is less important than the above as we can help (See below) in bringing someone up to speed. Watch also for LIVE events happening across Australia we are running this year. One of the key objectives of these is to facilitate networking with other trades. Also, check out Inner Circle if you are not already a member. Perhaps put the word out you are interested in having a trading buddy and see if anyone is interested.

b. Get them trained
If it is someone who has simply expressed and interest in trading but not yet taken the plunge, once you have your identified person in place then point them in the direction of “First Steps”, our free education course, for new traders to enable to fast track learning. Get them up and running with a demo platform and of course ultimately a live trading account. If this is of interest then connect with us ASAP and visit the FREE education page on the website. If they already trade, get them involved in “Next Steps” and “Inner Circle” as appropriate. Direct them to the page on the website.

c. Set some ground rules
Any relationship needs them! It doesn’t have to be a formal session, just a simple ‘how can we make this work for us both’ conversation. Document what you are doing and write plans for action can always help get the most for you both.

Finally, we see potential advantages for you and your buddy and of course, will facilitate that relationship through education and support 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, then take action.