A while back, I wrote a post that described how trading dreams come true. Since that time, I've seen many traders fall short of their goals, and I've seen a good number find success.
An unusual number of those that succeed do so in part because they find opportunities for mentorship. I'm not talking about the seminars, classes, and other events that offer "education" for traders. Rather, I'm describing a professional relationship in which a more senior trader models proper trading for a junior trader; offers timely feedback to the junior trader; and helps the junior trader structure his or her learning process.
It's rare to see entirely self-taught individuals achieve world-class levels of performance. More often than not, whether in athletics, performing arts, or trading, talent develops by being exposed to talent. It does not form in a vacuum, except perhaps in very unusual cases of early prodigy (Bobby Fischer in chess comes to mind).
One potential advantage of affiliating with a trading firm is that this can afford you an opportunity to benefit from mentorship and learning-by-example. Not all trading firms cultivate a mentorship culture, however. Many traders keep to themselves, perceiving no incentives to sharing their time and ideas with others. My experience is that the failure rate of new traders is significantly higher in firms that do not follow education and training with ongoing mentorship.
For those who cannot affiliate with a trading firm, finding mentorship can be even more challenging. I have long championed the idea of "virtual trading groups", in which like-minded traders (those who trade similar markets and strategies) extend their self-coaching processes to a group-wide level. If I learn a lesson in the markets or discover something that works for me and four other traders in my group do the same, we have just created a situation in which all of our learning curves can rise exponentially.
The key is finding those like-minded traders. It *can* be done, but it takes initiative and a willingness to reach out to others, put oneself out there, and exercise a creative vision for what a virtual group might look like.
Thousands of traders individually try to reinvent wheels every year. How much more could they achieve by joining forces, sharing strengths, and mentoring each other?
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6 comments:
Since we talk trading, it is relevant to our chosen profession.
By extension, however, that model works in many other professions/ businesses where the trial and error process gets shortened, and as per the recent "talent code" idea, exponential growth is possible.
Technology is a vibrant tool that continually allows us to accomplish more in a shorter amount of time.
...as long as it is working !
Live streaming video of charts... text, audio all at affordable prices.
Beats the tin can and string by a mile.
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Now the question comes down to...
"Is what is being taught valuable or just noise ?"
Thanks for your continued great commentary.
I find it interesting that your original post on virtual trading groups garnered 22 comments, but this time around, only one (two if you print this).
The concept sounds great - the devil is in the details, as it always is. But then, nothing ventured, nothing gained. So, if there are any swing traders interested in trading mainly US stocks on time periods of a few days to a few weeks, perhaps we could, as you say "join forces". I can be reached at my blog here on blogspot.
Not even Bobby did it alone. He had Vince Lombardy with him along the way. Moreover, chess players hardly operate in a vacuum the same way isolated traders do. When playing tournaments or even at a chess club, you are continuously exposed to higher-quality performance.
i could not agree more. but, i would venture to say, that with downsizing by corporations, and the many economic changes of the last years. most would be traders are past the age of recruitment by firms.the challenge then , is to find the worthwhile "mentor". i hate to say it but some of the most egregious and accessibe. do not turn out to offer profitable strategies.perhaps you know those who do. by all means, write about them. i'm sure many of us will be grateful
@ Radek Dobias - Vince Lombardy was the Green Bay Packers coach.
William Lombardy was the one who played chess :)
But, I agree with you on the rest of your comment. Maybe one day we can play chess against each other in NYC.
For those of us that have no connection to Wall Street, it's rare to find a stranger that is a professional trader, honestly willing to share, and have the time to spend with you. More often than not, my search ends up in the form of an expensive consultation service that is offered by someone whose trading skill is questionable.
On another note, Twitter seems like a promising platform. I've met some excellent traders there by exchanging tweets about the coincidental trades that we made at the same time. Although the exchanges on there are typically superficial and don't get into any depth.
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