If you want to be successful at anything at life you have to realize that you cannot do it alone. If we look into the lives of the most successful people over time, we will see that they could not have achieved that success without the help of a partner. Steve Jobs had Steve Wozniak, Larry Page had Sergey Brin, Warren Buffet had Benjamin Graham. These successful people might stand out on their own but they would have never gotten to such heights without these other people in their lives. I believe the importance of having a partner like this in our trading is also pertinent to your success.
Whether you are just starting out or have been trading for years it always great to have someone to bounce ideas off of. These ideas can be trading strategies that you think will be successful or they could be about what you think a certain stock will do in the future. Have multiple opinions is always best because we tend to look through a certain lens when it comes to trading. Another person may be able to point out a flaw we have not thought of or even perfect the strategy you were considering. Sharing these ideas with someone else can save you tons of money from mistakes you could not see coming.
Keeping Mental Game Strong
No matter how hard we try, trading will still be somewhat of an emotional game to us. No one likes to lose but as I have stated before losses WILL occur in your account no matter how long you have been trading. Sometimes you will even begin to go on a losing streak where you will have multiple losses in a row. These can really start to wear on your confidence and make you think that you are not cut out to be a trader anymore. You need someone as a support system in these cases to analyze your trades with you and see where you could have went wrong. Often times, your strategy is fine but you just need someone to tell you that they would have made the same mistake and its best if you move on. I never could have made it as far as I am today without my trading partner, Michael Sounart, constantly providing positive feedback and support.
Finding the Perfect Partner
In my experience, I believe a partner needs to have certain attributes that mold with yours to create success. Let’s go through some below.
- Similar or Greater Knowledge Base
Your partner has to have a similar knowledge to the markets that you do in order for you to be on the same page. If you are just starting out in the markets having someone who is very advanced trying to teach you certain strategies you need to make sure they know you are aware of all the moving parts. I believe its best to collaborate with someone whose trading knowledge is similar to your own and slowly work your way towards more advanced traders. You and your partner want to add value to each others trading when you collaborate. This can only be done when a similar foundation of trading has been set in place.
- Different thought process but similar personality
You want your partner to have a different level of thinking than you do so that they can point out flaws or opportunities that you do not see. At the same time, you do not want that person to have a personality that is completely different than yours. Some people are way more aggressive or passive than others and you do not want that to affect your core trading approach. You do not want to be taking on more risk than you are comfortable with just because someone else is encouraging you to with how they think.
- Constantly Supportive
Lastly, you want to find someone who will be able to collaborate through your trades no matter what. This person is your lifeline and your source for maintaining mental stability throughout trading. They have to have a certain degree of emotional intelligence and have sustained the same kind of losses as you so they know what you are going through. This support will give you the drive to press through any rough patches in trading.
As I said earlier, I am lucky to have a great trading partner like Michael to help me succeed in my career in trading. I could not have made it to this point in my life without his support and feedback. You need to find someone who can be that support system for you as well. This could come from friends or work associates who have a similar mindset on trading as you. It could also come from forums online or bloggers such as myself. I am always open to any questions or trades that you might have so please feel free to collaborate with me!
Homework: Find your Wozniak! Think about all the people in your life who could become your trading partner. If no one comes to mind start looking up forums or message me on my blog so you can begin to develop a support system for your trading.