Past posts have focused on the value of teamwork in trading and ways of finding teamwork in one's trading. The idea is to be part of a virtual trading group, even as one trades independently. This not only overcomes the problems associated with being isolated as a trader; it also creates a potential structure for accelerated learning.
A number of proprietary trading groups are recognizing the value of "groupness" and extending their work to independent traders. Trading RM in Chicago, for example, is offering a free trial of a service that enables traders to receive the actual trades placed by their prop traders, including stock and options trades. As their post points out, the idea is not to simply mimic their trades, but rather to use the information to highlight stocks showing trading promise. By tracking whether the traders are placing more long or short trades, subscribers gain an immediate measure of sentiment for the broad market.
Perhaps less obvious, such openness helps traders as well. Once all your trades become public, you become desensitized to losing. All your worst trades, as well as your best ones, are out there for the world to see. That goes a long way toward helping traders develop a thick skin during periods of slump. It's also harder for traders to lose discipline and "go on tilt" when they know that they're being tracked by colleagues within the firm and outside!
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"Perhaps less obvious, such openness helps traders as well. Once all your trades become public, you become desensitized to losing. All your worst trades, as well as your best ones, are out there for the world to see. That goes a long way toward helping traders develop a thick skin during periods of slump. It's also harder for traders to lose discipline and "go on tilt" when they know that they're being tracked by colleagues within the firm and outside!"
I have used my blog in a similar manner. The creation and posting of my trading and thoughts throughout the trading day, correct or incorrect, forces me to be accountable for my actions. I prepare longer, make sure I am fit to trade because I know readers are expecting a video. Being held accountable for my actions has forced me to improve in every aspect of my trading.
I keep my losses to a risk limit daily, and if I do not feel right, or am having a problem with software, I show this in my video, take accountability for my actions, post the p/l metrics and see how I can improve the next day. Just the fact that I have Camtasia Studio recording all my executions and thoughts forces me to think through my decisions in order to explain them on video. This repetition intern reinforces the pattern internalization.
After the video is posted and my "skirt has been lifted" on my trading for all to see, I review my video within the context of the market action that day to assess my performance and analyze why some trades worked out and some did not.
In regards to trading rooms, I believe I trade my best when I do not have 100 people chatting all the time, calling out trades, saying it will stop here or stop there. When I used to be in one, it led to me second guessing my decisions sometimes because a "higher up" was taking the opposite side. I found as soon as I left and started trusting myself and monitoring my actions via video, my trading improved immediately.
There is also a great feeling of accomplishment I have now, knowing I can wake up - turn on my computer - do my own analysis without the need for any outside opinion - then execute it profitably and manage risk during the trading day.
It was only when I stepped away from all the webinars, trading rooms, subscription services, experts, financial news, and other noise did I begin to trust myself and believe in my ability as a trader. Since that time, I have seen an exponential increase in my improvement relative to the past years. It is a wonderful feeling waking up knowing you have the ability to manage oneself and manage risk in the market without anyone else telling you what to do. This increased confidence has had a positive snowball effect on all aspects of my trading.
- Matt Fahmie
While I have not where near the experience of Matt, I have reached the point where I don't listen to CNBC etc. and prefer to do my own analysis. I also have begun to record my self talk, as if I had someone sitting beside me to whom I was explaining what I am doing, why etc. I can see that going public with one's trades would change the dynamic a lot.
I wonder what influence will be on the market for a prop firm to be advertising their trades. This assuming of course that there will be traders out there who will clone those trades and add to the momentum.
Great post, and great response by Matt. Thanks for lifting up your skirt...
I agree 100% that it's best to learn how to trade from experienced professionals...then go do your own thing rather than relying on gurus to make the calls.
The concept of becoming "invested" in an idea needs to be neutralized by a business process called "CRM",which basically short circuits our emotional responses.
I have found being "accountable" for our actions has a positive affect on our trading.
Comeraderie in a room is one thing, making the best use of our time and capital is quite another.
Thanks to JK from our room for sharing this post with us... I love teamwork.
"none of us is as smart as all of us" - Jim Rohn
that is true! I am joining a public chat in a network called Reditum, its a network created only for tra ding,its in spanish and there we can share all referring to markets and even psychology of trading.
Great help for me because im just starting this beautiful path!
http://reditum.ning.com/
by the way, its free!
Great post! Brett, your point was taken to heart by me, since I started blogging my trades and I realized there were people actually reading the postings, I became a lot more accountable for my actions.
Once you "lift your shirt", like Matt puts it, there is no blaming others anymore, there is only you and what you did. Right or wrong.
Now here is something unexpected I got from my blog: People started to cheer me up when I made mistakes! There is no greater feeling than receiving a pat in the back when you're down... You realize you're not alone and there is someone else hoping you will come back the next morning. That helped me to keep it up and stay in the path.. this is another great benefit from sharing with the intention of adding benefits to others. Sooner or later those benefits come back to you.
Matt, your videos are awesome! Please keep it up!
Cheers!
Gustavo
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