Trading can be a very lonely undertaking. As a retail trader, you may sometimes feel like you are on an island because you have to make all the decisions yourself. Obviously, there are good things about that too. You are your own boss…hooray! But this mentality feeds into why extracting money from the market can be so difficult. When you are on your own with trading, and with anything in life actually, the psychological aspects can rear their ugly head. There is a simple solution that cannot guarantee your success but can definitely help: Find a friend.
That’s What Friends Are For
These song lyrics ring true, and I don’t believe Dionne Warwick was ever an options trader. To be honest, finding a friend might not be the easiest thing to do to help your trading. First, where do you find someone and, second, how do you know if you can trust them? This is true whether it be a trading friend or a social friend, right? There are several trading groups out there that you can search for online as well as chat groups like the MTM Community Chatroom.
The way to possibly befriend someone is to follow their posts. See if they have similar trading styles and approaches to yours. If they do, reach out to see if they might be interested in communicating on a more personal level occasionally. Who knows? It could become part of your regular routine.
Ask Around and Show Up
In addition, ask friends and acquaintances if they trade options or know anyone who does. You might be surprised by who does, and it could even be a close friend. You might also get an occasional “I always wondered about trading options” response. In that case, you can help them learn about trading, which in turn usually helps you perform better. Go to in-person events like MTM’s annual retreat. This year’s is happening next week in Sonoma. You wouldn’t believe how many connections I see made there each year, and many last a lifetime.
No one says you need a trading friend or buddy, but many times it cannot hurt, especially at the start of your options trading career. The key is to find someone you can trust who has a similar trading style.
Senior Options Instructor