Friday, March 07, 2014

Creating Effective Trading Partnerships

I want to thank those who commented on my post regarding a different kind of proprietary trading firm, and especially those who are using the comment section to reach out to others and create such a group.  Please feel free to use the comments section to reach out to likeminded others and see if it might be possible to create trading networks that integrate trading research, mentorship, and coaching.  I don't think it's necessary for participants to be trading the same way in the same markets.  If I were in such a group and trading stock index futures, I'd be very interested in hearing what people were researching and trading in related asset classes and in single names.  I'd also be interested in learning what others have done to break out of slumps or to keep an effective journal.  

The learning in a virtual trading group is as much about process as actual trade ideas.  That is why a site like Stock Twits is very useful, but not a substitute for actual group participation.  You can gather trade ideas from Stock Twits and you can use the service as an effective networking tool.  It is difficult, however, to capture detailed research and process-oriented guidance in single tweets or even in a blog post.  Much of learning is an interactive process and involves modeling behaviors, not just explaining them.  I have often seen a discussion of research lead to fresh insights that were not a part of the initial research.  That's tough to accomplish via text.

Stock Twits would be a great way to reach out and poll traders for interest in group formation.  User groups of particular software, such as Market Delta, would be another promising avenue.  I suspect that many groups may start as individual collaborations between two committed traders and then branch out from there.  The key is finding synergy:  people who, when placed together, generate ideas and approaches that none of whom would have come up with on their own.

Much of trading is a creative process; much of trading success is nurturing and managing that creative process.  In life, as in trading, the right partners bring out the best in us.

Further Reading:  Conflict and Creativity in Trading