Team Trading for Intra-Day Traders

The following Guest Post submission is from Fred Decker, a trader in the TopStepTrader program. For more on their innovative program to cultivate and fund aspiring new traders, check them out at www.topsteptrader.com.

 

Team Trading for Intra-Day Traders                                               

By Fred Decker

All traders are looking for an edge to help them be consistently profitable in the markets. With so much information available for the trader to process and act upon and so many trading ideas and hypotheses racing through the trader’s mind each moment of the trading day it’s easy to be overwhelmed. Which trading ideas are the right ones? Have you ever told yourself, “I knew the market was going to go higher, why was I short?” or, “I knew I should have stopped trading.  I wasn’t seeing the market well. Why did I continue to trade?” If you’re like me you’ve asked yourself these questions and others like them many times.

These thoughts can be the enemy of the trader—undermining confidence and starting the snowball of negative self talk rolling down hill. Soon the questions can become, “What made me think I could ever do this?” From there thoughts can naturally turn to giving up on the trading opportunity.

What traders need is a way to prioritize their thoughts while they are trading, find a source of encouragement and support, and a better way to analyze and hold themselves accountable for their actions. They need a trading teammate.

Prioritize Trading Thoughts

Thoughts race through the trader’s mind faster than he can verbalize them. Some thoughts are probable and others are only possible. For a passing moment an idea can seem so compelling it requires immediate action. The trader clicks the mouse. Then—too late—realizes he has made a mistake.

The trader can’t talk as fast as he can think. Describing thoughts to a teammate requires the mind to filter out the less likely ideas and only focus on thoughts which seem more probable. The trader reexamines his thoughts as he speaks them. The trader thinks, “Does this idea still make sense when I hear myself explain it?” “Does this idea fit with my purpose and what I am trying to accomplish in the markets?” The teammate can react, agree or disagree, and the trader can check himself. If the idea is a good one, the challenge won’t hurt. The trader’s actions become more deliberate by working with a teammate. He has a chance to prioritize his market ideas and get a better feel for his own identity in the markets.

Finding A Source Of Encouragement And Support

No one can fully understand the obstacles and challenges of trading as well as someone who is fighting the same battle. Have you ever thought your mistakes must be unique, because no one else could be stupid enough—or stubborn enough—or crazy enough to keep making the same error again and again?  Guess what? Almost every mistake you have ever made has been made many times by others. You are not alone after all.

Working with a teammate fosters camaraderie and places the trader’s mistakes into a context of shared experience. Whatever the specific mistake may be the teammate is likely to respond, “Oh yeah, I’ve done that too.” The shared experience can even become a joke—not in a way which belittles the mistake, but in a positive way that understands that we all make mistakes and have to work hard to correct them. Even if the teammate is only a person to vent frustration to, having an outlet allows the trader to avoid bringing trading problems home to his family.

There is something inherent to the task of trading which lends itself to talking with a trading teammate and working out the thoughts and feelings of the day. Without an outlet for examining these thoughts and feelings the trader is left feeling isolated and vulnerable to negative thoughts.

Analyzing Mistakes And Holding Traders Accountable For Fixing Them

There is an education in every market the trader sees and every trade the trader makes. Working with a teammate naturally allows the trader to make the most of this education; by reviewing performance, developing strategies for improvement and being accountable for planned changes.

A formal approach isn’t needed—only regular conversations with the teammate. The conversations will tend to cover the most appropriate topics automatically. The trader will be accountable to the teammate for carrying out the strategies discussed—not in a disapproving “did you eat your vegetables?” way—but in knowing he will talk to the teammate and describe his trading day. The trader won’t want to tell the teammate that the same mistakes were repeated. The teammate will recognize the small victories when the trader implements his planned strategy and avoids the mistake. Once again positive momentum is built and progress is encouraged.

Conclusion

Each trading teammate relationship will be different depending on the individuals involved. I am fortunate to have several teammates I talk to regularly, and I am open to talking to anyone about markets if I have the time. If a trader is inexperienced this should not be a deterrent from seeking out a trading teammate relationship. The willingness to help others is more important in my opinion. Remember, no one is asking for charity. Each trader is offering mutual help.

Any contact with other traders could be a potential resource for finding a trading teammate. I offer to exchange phone numbers and ask if the potential teammate wants to talk about markets sometime.

I think working with a teammate could help all traders. I hope you will try it. You might be surprised by how much you enjoy the experience and how much your trading will improve.


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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