One of the defining features of being a retail trader is that you take sole responsibility for the outcomes of all your trades, for better or for worse.
When a trade fails to go the way that you wanted it to, you cannot blame it on your lazy coworker, shoddy materials or the sun being in your eyes. Every time you click a button to open or close a trade, it all comes down to your reasoning behind doing so.
However, just because you take full responsibility for all of your trades does not mean that you need to trade alone. Trading communities offer significant benefits to retail traders, who otherwise are all alone in a vast sea of information and possibilities.
Here are the three main advantages to being a part of a trading community.
Exposure to Ideas
A trading community is a constant buzz of the latest thoughts, ideas and information of the day. You can track all the news, financial information and newsletters that you like, but you will never be able to identify anywhere near the amount of solid trading ideas that you will see in a trading community.
Other traders will be processing all of the same information that you are exposed to, but their personal perspectives and unique analyses of that same information cannot be found anywhere else.
Whether you agree or disagree, the exposure to other traders’ ideas is an invaluable resource that every retail trader should draw upon.
Just as you can learn from the ideas of other traders in the community and use them to enhance your own understanding of current financial conditions, other traders in your community can offer direct feedback on your own ideas for trades and interpretations of current financial data.
This feedback is particularly effective as a retail trader because it is so easy to become enamored of your own perspective and lose the ability to critically analyze your trades. This tendency to lose a critical perspective is especially true when a trader believes that they are being particularly brilliant, which is precisely when they require a critical perspective the most.
Having a community that can offer informed feedback on all your trading ideas is a great way to get a final check on them before you execute. Traders can miss some of the simplest details in their excitement to be on the right side of a trade, and some additional critical perspectives on your ideas is a great way to make sure that you are on the right track.
Learning and Relationships
Retail trading can be lonely and intimidating work. Being part of a trading community offers you a home filled with like-minded people that are facing many of the same problems that you are. This is a place where you can learn from the failures and successes of other and share your own trading stories as well.
A community of like-minded traders offers a place for you to constantly be learning and improving your skills, but also offers a place where people understand the highs and lows of trading and are excited to discuss it with you.
While your friends and family may be supportive and interested in your progress, they will not be able to offer the insight and interest that a dedicated community of retail traders can.
This kind of support and companionship combined with a source of constant learning makes trading communities an essential part of any retail trader’s success.