Having a Forex Trading Team vs. Trading Alone

Updated from its original posting on 2012-04-20

I’m a strong believer in the saying, “No man is an island.” In trading, and in just about any endeavor, it often feels good to know that you are not alone. It’s because of this, and a couple of other reasons that I have been advocating having a trading group.

Having other people around allows you to view trading situations with several different perspectives. For example, a setup may appear incredibly bearish to you so you risk more than your usual position on that trade.

But your trading buddy could present an opposing view, which can cause you to think twice and scale down your risk to a level that you’re more comfortable with.

forex trading teamTrading groups also allow you to find motivation during those really tough periods. In times when you incur large drawdowns, others can give you the support you need to move forward and continue to trade.

Unfortunately, not all traders are built the same. Some people do not work well in groups and actually do better by trading alone. Every person is unique and trading in a group setting may not be as productive to some as it is to others.

One of the main advantages of trading by yourself is that you are free to experiment. The thing is, in groups, people tend to think alike. This means that when you want to veer away from the norm and think outside the box, there tends to be a lot of criticism and resistance.

For instance, you may think that an interest rate hike is already priced in, so you tell your friends that you’ll fade the move.

Or maybe, you want to try an outrageous trading system that nobody has ever tried before. If they don’t agree with you, you may face some disapproval for thinking differently which could stifle your personal growth.

Another benefit of trading alone is that you don’t have to deal with the emotional and psychological dynamics of a trading group.

Humans are self-conscious beings, and sometimes, they will do and say things simply because it is what they think others expect of them, or that it is more socially acceptable. The same goes for trading.

Take listening to others’ trade ideas for example. You may think that a setup doesn’t make sense, but you still take it anyway because a majority of the group believes it’s a good idea.

If the trade flops, then you can end up resenting the group. However, if it works out, you may start feeling crappy about yourself for not seeing the logic behind it.

Now look at the other side of the coin. In trading groups, there will be times that your trading ideas will also be taken by someone else. If it works, then all is good. But what if it doesn’t?

You’d waste your time explaining your actions and feeling guilty about the impact of your trading bloopers on someone else’s forex account. This doesn’t happen if you trade alone.

When trading forex by yourself, only you are responsible and accountable for your own success. You cannot simply shift the blame to someone else. Some traders may find this concept too scary, but to others, it is very empowering. They know that they alone are in charge of their own fate.

Do you prefer trading alone or with a group? Don’t be shy to share your thoughts and experiences in our comments section!

  • Robert Christian

    I do not know anyone else personally who trades. That makes BabyPips special doesn’t it? Some other folks with the same interest.
    At my work, it helps me often and sometimes a great deal, to discuss the job with some of the other workers. That would, no doubt, be advantageous in trading, too, but we would have to be doing the same thing where the trade system is concerned.

    • Dr. Pipslow

      Yeah that’s true, it’s sometimes a struggle to explain what forex trading is all about so I often just share my thoughts with the forex community right here. Glad to have you in the mix! See you around

  • Chumpski

    Same, I don’t know a single person that trades either, I can’t even call it Forex because they always ask what’s 4X? That’s why I love babypips too it’s already a trading group if you read the blogs!

    • Dr. Pipslow

      Thanks for the positive feedback on our site, glad you’re finding a community of like-minded folks in here. See you around!

  • Very old post, but I think I want to add something to this. There is one huge advantage to a trading group: time. If a trading group is set up properly, there can be someone watching the market during pretty much any hour of the day.

    • Dr. Pipslow

      Good point. I like the idea of someone executing plans that were discussed by the group but don’t happen during the majority’s usual trading time. Do you think you can trade with a trading group?

      • Possibly, although I tend to wake up at odd times of the night and check my account anyway. Plus I don’t feel comfortable enough with my decisions to be in a group at the moment.

        • Dr. Pipslow

          Probably a good idea. It also depends on the group, I guess. You don’t have to be the smartest person in the room to take ideas from others and contribute your two cents.

          • Yeah. Well, I’m not doing too well at the moment anyway. Central bank manipulation is killing me.

          • Dr. Pipslow

            Which central bank? Don’t worry, you’re likely not alone.

          • > Which central bank?

            Take your pick.

          • Dr. Pipslow

            Ha. Good one. If it makes you feel better, I don’t think any one of the central banks are happy with what they’re doing either. They’re mostly just doing whatever option is available to them right now.

  • Jorge

    How can I find Forex trading groups?