Thursday, April 01, 2010

Five Questions for Starting a Virtual Trading Group

If I were helping start a virtual trading group, I would suggest that each member come to the first "meeting" with the following information:

1) What recent improvement in your trading process has been most effective for you? Please explain this "best practice" and how you incorporate it in your daily trading;

2) What entry setup is most effective for you? What markets and time frames do you utilize this setup?

3) What is most effective for you in managing risk? How do you incorporate good risk management on a daily basis?

4) How do you most effectively exit your trades, and how do you plan those exits?

5) Where do you most need to make improvements in your trading, and how can the group help you with that?

If you don't have concrete answers to those questions--or aren't willing to share those answers--a group won't be of benefit. But if you have clear strengths to share and are open to allowing others to assist with your weaknesses, a group can become much more than the sum of its parts.
.

5 comments:

Doug said...

A group such as this could be very beneficial. Particularly if there were members who held different views of the market and how to trade it.

TradeMind said...

Thanks Brett.
Very good questions to ask.

George said...

Here is the problem with groups:

If you don't know what you're doing...

...and you hang out with others who don't know what they're doing...

...you inevitably end up with a group of people who don't know what they're doing!! ;-)

That said, go to Yahoo Finance and take a look at the forum for SPY (or any other symbol). I would estimate that 50% of posters don't know what they're doing, admit they don't know what they're doing, and are there with a sincere desire to learn.

The other 50% of posters also don't know what they're doing, but try to convince everyone else they are market gurus in an attempt to impress and/or gain subscribers to some service they are peddling.

The entire group is nothing more than BS, flame wars, and a complete waste of time. You run into the very same thing no matter where you go on the Web.

A group with members who have *proven* track records and who are willing to share their knowledge with the group is one thing, but I don't see how trying to learn from others who are also trying to learn can help you become a successful trader.

Now, if you are looking for someone to hold hands with while you both stumble around in the dark, there is nothing wrong with that, but if one of you doesn't have a flashlight with good batteries...

;-)

leon t said...

i'm echoing george's comments. in therapy, i have found that groups tend to be stronger than the sum of their parts. at least the ones i've been a part of.

yet, in trading i find that there's not many good "facilitators". that's why i asked for what criteria you'd use for such a group. now that you've given us something to go on. it reminded me of an already existing group. so with the intent of helping those who qualify, i'd look at wb trading. (WIDE RANGE BAR TRADING). he posts on twitter, and, their room is free but pretty much requires some of the criteria you've posted. unfortunately for me they require for members to post some trades. even simulated ones.(i don't have software which allows it, i do most sim by hand). and, the explanation for why they were taken. they also have other requirements. but the whole intent is to eliminate the scenario described by george's post. if nothing else it could serve as a model for whatever comes out of this effort. fwiw.
by the way, they also sell patterns and a course etc, however, no purchse is needed to join. yet, my application is still pending and the whole process is controled by the trader who runs the site. feedback would help here.

OptionsVic said...

Dr Brett, sorry if I missed it, but where should one send these responses to?