Your Trading Network
To succeed as a stock trader at the highest level, one must have developed analytical skills and a level of discipline that would make a Buddhist monk proud. The stock trader makes his living (or supplemental income) in the cold, impersonal, and unforgiving world of numbers. Technically speaking, to succeed in this world, one does not need human interaction, as even the need to talk to a broker has been eliminated in the last decade with easy-to-use trading platforms. Yet even in this cold and calculating world, developing the right connections with people can greatly increase the likelihood of your success.
The connections with people you develop relationships with in the stock trading world will differ in their dynamics from other fields of investment. Most other areas have relationships built on the dynamic of an exchange of services. The person does X for you (Realtor, investor, etc) in exchange for you doing Y for them (fee, percentage of business, etc). There is absolutely nothing wrong with exchanged-based relationships as they are the heart of real estate and entrepreneurial ventures. Instead of being solely exchange based, the relationships you develop in trading the financial markets will be of a more cooperative nature.
In short, you are looking to develop relationships with other traders, individuals just like you who go through their daily routine of going through a watch list and evaluating the technical aspects of stock charts. The goal here is not to find people who will tell you what stocks to trade, but to find people who are willing to help you analyze the trade setups that occur on stocks you are following, provide information on new stocks that they are following, and talk about relevant news that might affect the trends of stocks, sectors, and the broader market. In exchange, you simply do the same for them. These cooperative relationships can greatly aid both parties in the evaluation of trades that you are looking to make and provide you with insight that might not have occurred to you otherwise.
In real estate, it is highly unlikely that someone finds a great deal and then shares it with a similar network before purchasing. This is not the case for those that trade the financial markets as two people can look at a solid technical setup on a stock and both can enter the trade and share in the rewards. It is unlikely that either of you will be trading the quantity of shares necessary to move the stock significantly and thus both can share in the rewards when the stock behaves as the technical setup predicted it might.
In the relationships I have built around the financial markets, sometimes we talk multiple times a day and sometimes we go days without talking. It completely varies around what is happening with the stocks I am following and what news is occurring. The typical conversation usually begins with one of the individuals asking the other to look at a stock chart. When I ask someone to do this, my primary goal is for them to verify what I am seeing on the technical setup or if I am missing something before I enter a trade. If I get verification from a trusted trader that my trade setup has been correctly identified, then we might spend a minute or two on what a good target for my exit point would be and what my stop should be as well. It's not unusual for the other person to tag along with the trade. Most of the time, all of this just takes a few minutes and we then go about our business.
When someone in my network calls me, I try to give them my full attention and the best analytical opinion I can give. Relationships are always two-way streets and while it might sound trite, I have found that the more you give, the more you receive. Along these lines I try and not burden anyone in my network unnecessarily. I only bring the actual stocks I am ready to trade or pertinent questions to their attention. While friendships naturally develop out of these networks when talking stocks, I try to stay on point as much as possible. I assume their time is valuable and I try not to waste it.
Developing these types of relationships can take some time but it is well worth the time invested. The type of feedback you receive and the discussions that naturally occur make you a better trader. As you start out, many of the relationships that you encounter will simply not be worth pursuing. Oftentimes people want to talk stocks but don't have the technical knowledge necessary to help you in your endeavors. Sometimes people just want to glean your knowledge but offer nothing in return. Not all traders are equal and some simply don't have what it takes to succeed in the markets. You are not developing these relationships to be someone's coach or mentor as you are looking for individuals with similar skill sets to your own. Always remember one good trading partner is worth more than 100 bad ones. The saying less is more is applicable here.
So where do you start in your search for a trading network? The fastest and best option is the Internet. There are numerous trading forums that exist that might lead you to individuals with similar interests. In addition, starting a Facebook or similar type page dedicated to talking stocks might help. If you are continuing your financial education through any type of advanced training such as Technical Mastery or Master Trader ™ delivered by Tigrent Learning, then networking with the people in attendance is a must. This may provide you with numerous individuals who have similar interests and the training to go along with it.
Whatever route you choose, I strongly suggest that you dedicate a few minutes a day to starting and developing this network. It may take some time, but it can help you become a better trader. While you can go at it alone, there is no reason to not develop additional tools that increase your probability of success.