The Importance of a Trading Buddy
The journey to becoming a professional trader can be a long and lonely road.
I’ve been fortunate enough to have a great trading buddy for most of my trading career. The two of us are able to work through ideas together and hash out different aspects of our trading plans. But the benefits go well beyond the talk of trading strategy.
Here are some reasons why a trading buddy can exponentially improve your trading.
- Accountability
- Motivation
- Conversation
- Masterminding
Accountability:
First and foremost your trading partner is there to hold you accountable for your trades.
Having someone to review setups at the end of the day is a very quick way to improve your trading discipline. If you’re comfortable enough with the person try exchanging statements or trade logs at the end of the day. Review each others setups, entry’s, and exits. This is a time to be open and honest with each other. Question everything.
By teaching one another and walking your partner through your trade setups you will find it easier to identify the setups yourself. This in turn, brings clarity to your own setups.
Motivation:
The ups and downs that come with trading are inevitable, we all experience them. Having that trading buddy to share successes with during the good times is great, but more importantly it’s great having someone to talk to during the hard times. Someone who understands. Together you can lift each other up and keep focused on the bigger picture.
The accountability factor alone acts as increased motivation. When the markets are slow you can check in with one another and make sure you’re adhering to your rules and staying focused.
Conversation:
Having someone to talk to, hash out ideas with, and share experiences is priceless. Let’s face it, most of your friends and family don’t know much about trading and probably think you’re talking in another language when you speak your most fundamental trading ‘lingo.’ Speaking your ideas, sharing your thoughts, and even expressing your feelings to one another brings clarity to each of you.
It doesn’t matter if you are trading the exact same methodology or even the same markets (although I think it helps). Traders understand other traders.
The book Blink by Malcolm Gladwell has some great insight to the mindset of traders and creating quick decisive snap judgments. I found the ideals in the book very applicable to the daily occurrences of trading.
Masterminding:
The ability to mastermind and brainstorm with like minded people is necessary for growth. Developing as a trader alongside my trading buddy has been incredibly helpful. Meeting for drinks and discussing new ideas or observations is a great way to cap off the week. Pooling together your resources the opportunities begin to shine.
Where to Find a Good Trading Buddy
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