Proactive Trader: a Team Player or a Loner?
Information is not investment advice.
When you start trading, many questions appear in your head. Today we concentrate only on ones that consider the effectiveness of performing on Forex. How would it be better? Alone or as a part of a big trading "family"?
Like in real life, in trading, people also can be divided into two main groups: those who prefer trade as a loner and those who are much stronger as a team player. How to understand what kind of trading activity suits you? Where can you be on the top of your productivity? To be honest, there is no right or wrong answer. It depends on you and the style of work that you find more comfortable. Evaluate the pros and cons of both trading styles and decide what you prefer.
Collective Mind – One Trade
At first, novice traders may think that it is more productive and safe to start their trading way if people, who are able to support and speed up the learning curve when performing together, surround them. Does it work like that?
- Different opinions
Having people around allows you to look at trading from different points of view. It makes the decision-making process way more accessible because you manage risks from many perspectives..
In a perfect world, a trading team incorporates various people with a multitude of skills. When such people work together, they can get a comprehensive appraisal of the market's challenging situation. Consequently, they may find the decision that fits perfectly in every particular case.
However, our world, unfortunately, is not flawless. In the market reality, you have to show results as fast as you can. Otherwise, you will miss opportunities. Working in a group is more time-consuming, and it does not annul risks though.
- Clear structure
A capable trading team has to have its hierarchy. Every member has a particular field of attention where they may apply their knowledge and experience to trading in the best possible way. Teammates share responsibility, making the trading process less tense, while role distribution simplifies the market control.
- Time-sucking arguments
Although working with a strong plan according to which everyone is in charge is a good cop, a bad one may hide in plain view. Every team must have a leader, a person who is able to coordinate the others towards one common goal. This person has to make a final decision. However, other team members may disagree with it. Such arguments eat your time on Forex and prevent you from being a productive market player.
If you have a unique vision of how to trade or you just think outside the box, you may face a lot of criticism and resistance in the group. It may stifle your personal growth.
Moreover, you have to deal with the emotional and psychological dynamics inside the trading community. It may suck all the energy out of you.
- Unlimited support
On the other hand, if you are trading as a powerful unity, one living organism, it allows you to find motivation during tough periods and do not cope with large drawdowns alone.
Remember that any coin has two sides. We have looked through the pros and cons of the first side, so let us move on to the second one.
A Lone Wolf of the Wall Street
Some people are better at working alone by nature, than in a group. If you are trading by yourself, you have more space for personal initiative and growth. You are free to experiment but also are not immune to making mistakes.
- More profound analysis
Solo practicing allows you to make decisions on your own and save time on trading by omitting long discussions. But the lack of diverse opinions may lead to a situation where you cannot see actual logic behind some of your market choices. Think twice before you make any moves in the market and make proper preparations before starting any day on Forex. Read the news and analytics, follow your trading plan, and try to stay focused as long as possible.
Refresh your trading knowledge with the transparent and well-detailed Forex Guidebook. Work out on your discipline. It seems natural to stay productive in a team of like-minded people. When you are alone in the market, you have to take more control over your emotions and the whole process itself — no trading buddy here for you to present an opposing view or support you during hard times.
- Strong motivation
Without well-thought-out personal motivation, you can drift in your career, neglect things of high importance, and just get lazy. Nobody except you can push your performance. When you slack off, you have to be your own trading buddy to whip yourself into shape. So, set specific goals and time limits, follow your trading schedule, and be ready to catch the trading wave!
- Personal responsibility
Nevertheless, as a private investor, you have a bunch of advantages. By trading alone, you can control all the processes yourself. You are the one who rules and who is responsible for the performance. It may boost your productivity and help to prevent you from making crucial mistakes.
- Freedom of choice
Working as a one-person Forex team is an excellent opportunity to veer away from the norm. Although you cannon share ideas with the other team members, you can create your own exclusive trading strategy. Test it on the real market conditions and face no aggression or hesitations that you may experience if you trade as a team player.
- Time for yourself
For almost anyone, daily communication can be a real drag sometimes. Performing alone eliminates this barrier and makes your trading more convenient.
However, as a loner in the market, you cannot simply shift the blame to someone else. All the responsibility lies on your shoulders. It may sound depressing, but, in fact, it is a perfect match for those who prefer to rule their life the way they want and are ready to be in charge.
What is What
As a rule, if in real life you feel better when working in a group, then there are more chances that you will be more productive on Forex as a team member. And vice versa. If you a lone wolf, there is no need for you to get in packs to hunt for larger prey. You are self-assured and can easily expand trading horizons by opening new doors to the Forex universe. However, as you may know, every rule has its exceptions. So, it is up to you to decide what trading style is yours. Try different things, and remember FBS is always by your side.