To think there is safety in numbers in a stock trading group is a mere fallacy. So many traders I know, the first thing they want to do is join a users group. The big question: why? Look at your peers. Do any of them look like they know more than you? Would you want to take advice from some of them?
Even if someone shares some knowledge that you crave, soak it in. But recognize that they just because they knew that one kernel of information, that they are not suddenly a prophet of profit. A common issue is that traders latch onto fellow traders emotionally. After all, this is a very emotional business and it's easy to place your complete trust in a fellow trader. They would never want to hurt me, right? And they don't; but they will not always have the answers, just as you won't always have answers either.
Traders by definition are independent thinkers. They also have egos. All too often, you'll hear of someone's wins. How many speak of their losses? Attach yourself to someone you perceive as a winner and you may be in for a disappointment. Eventually, even if they don't admit it, you will see a side that also loses. So which do you believe? Your fellow group member means well and will gladly take the credit for a recommendation but more often that not, they will quickly hide should the trade turn out to be a dog.
Groups are beneficial for exchanging knowledge, no question. I have learned a great deal from groups. But for actual trading, it's always best to be your own person, disregard others' opinions and base your trades on material you learned and understand.
The other side of the coin is that if you are perceived to be the winner, your fellow members will lean on you for tips. You'll feel great as long as the winners continue but once a loser sets in - and it's just a matter of time - not only will you feel bad but will become the haunt of others.
I've been a part of groups where we simply drop in, like an all day coffee club. This is hardly beneficial as it becomes addictive and unproductive. I prefer to learn the ropes, get in a trade using my own perceptions, make my money and get out. Usually, I'm done by 11 am, leaving me the rest of the day to spend with my family.
Even if someone shares some knowledge that you crave, soak it in. But recognize that they just because they knew that one kernel of information, that they are not suddenly a prophet of profit. A common issue is that traders latch onto fellow traders emotionally. After all, this is a very emotional business and it's easy to place your complete trust in a fellow trader. They would never want to hurt me, right? And they don't; but they will not always have the answers, just as you won't always have answers either.
Traders by definition are independent thinkers. They also have egos. All too often, you'll hear of someone's wins. How many speak of their losses? Attach yourself to someone you perceive as a winner and you may be in for a disappointment. Eventually, even if they don't admit it, you will see a side that also loses. So which do you believe? Your fellow group member means well and will gladly take the credit for a recommendation but more often that not, they will quickly hide should the trade turn out to be a dog.
Groups are beneficial for exchanging knowledge, no question. I have learned a great deal from groups. But for actual trading, it's always best to be your own person, disregard others' opinions and base your trades on material you learned and understand.
The other side of the coin is that if you are perceived to be the winner, your fellow members will lean on you for tips. You'll feel great as long as the winners continue but once a loser sets in - and it's just a matter of time - not only will you feel bad but will become the haunt of others.
I've been a part of groups where we simply drop in, like an all day coffee club. This is hardly beneficial as it becomes addictive and unproductive. I prefer to learn the ropes, get in a trade using my own perceptions, make my money and get out. Usually, I'm done by 11 am, leaving me the rest of the day to spend with my family.
No comments:
Post a Comment