Should You Trade with a Team?
You may think of trading as an individual activity, and for many traders it is—but not for all. It’s very common to trade with a team. Some teams are large while others are small, and some work closely together while others simply share their strategies and trades as they come along. How you structure your team is entirely up to you. You might form one of your own or join one which already exists. Some teams charge a membership fee, while others are free. Trading with a team has advantages and drawbacks, as do all these different structuring decisions. Is trading with a team right for you?
Benefits of Team Trading:
You are not alone. This all by itself is a huge advantage, especially if you have been trading in isolation and have found that isolation to be disadvantageous. Many traders benefit from knowing others who share their goals and dreams to some degree, and who have experience in the same markets.
When you trade with a team, it may be easier to stay focused. If you have a tough time staying disciplined and fulfilling your trading obligations each day, you may find it easier if you have a community to interact with. Team members may share their trades in real time, and it can really keep you motivated to know you are helping others, and to benefit from the hard work of your team members in return.
Share knowledge and learn new strategies. One of the best ways to learn new trading techniques or refine your existing techniques is to share information with others. Most binary options teams are comprised of members who trade using similar trading methods. Together, you can refine and improve your techniques, and also troubleshoot problems. Check this list out together!
Learn from each others’ mistakes. Team members can provide perspective on one another’s errors and help to identify mistakes. It can be difficult sometimes to look at your own situation and see it clearly, because you are too close to it. Someone else who is doing similar trading activities but who is not in your exact situation may be able to shed some light on your mistakes. You also may avoid mistakes by learning from the errors of your companions. When your teammates lose money and you are able to see how it happened, you are unlikely to make the mistakes they did. You can also be held accountable.
Drawbacks of Team Trading
Scheduling. If you are doing real-time live trading with other team members, you may have difficulty scheduling trades. Everyone has to have a compatible schedule and be consistently present, otherwise it will not work. Some teams do not actually take trade this way, though, and may simply share trades on a forum and learn from each other that way.
Sharing each others’ confusion. While you can learn from each other’s mistakes, you also may find the team model backfiring somewhat if you get caught up in each other’s mistakes instead. A team member’s error can quickly become your own if you blindly take the same trade, expecting all is well. You may then find yourself just as confused as your fellow trader when you both lose money.
Distraction. Sometimes team members can distract each other with too much information. If you have achieved a certain focus with your trading, you may not want to hear a dozen new strategies and modifications every week. You may simply want to do what you have been doing, but find it difficult to focus when others are pulling you in different directions.
Cost. Some trading teams are arranged as online “groups” which charge a fee to reference materials and discuss on a forum. Many trading groups are well worth the fees they charge for the upkeep of their servers and the time dedicated by team leaders. But the cost is certainly a drawback to factor in before you decide to join a team which charges for membership.
Organizational structure. The larger a team gets, the more complicated managing that team can get. Even small teams may struggle with organizational schemes, though. Generally speaking, the less you rely on one another for specific trading decisions, the easier this pitfall will be to avoid. If you trade together in real-time, you will need to have a structured approach or everyone will become confused and frustrated.
If you put some time and thought into how you’re going to trade with a team, you can usually minimize or remove the drawbacks while maximizing the benefits. Be very selective about who you trade with. You should ask to see trading or testing records for any other team member before you start taking suggestions from that person, and likewise, you should be transparent about your own results. The best results are always achieved when everyone on the team is honest about both their triumphs and their losses. Good luck, and enjoy trading with others. It’s one of the best forms of leverage out there. Unlike bonus leverage, leveraging the support of others (as long as you do so intelligently) is unlikely to result in you losing money!
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Photot credits: Team work