Some people choose to trade with other people. This is often something that amateurs or beginners feel they should do and there are some advantages to doing this, especially if you need reassurance. However, there are many advantages of trading alone, even, or some may say, especially, for beginners and amateurs. Here we will look at some of those advantages.
- Understand your psychology. It is important to understand yourself and how you operate before you attempt to create a strategy for trading. Psychology is just as important as strategies when it comes to successful trading and trading alone will allow you to gain an understanding of what works for you.
- Make your own decisions. You can put the required time and effort into researching the market and honing your emotions for a successful trade, rather than spending time and energy explaining your rationale to others or trying to understand another person’s rationale that you don’t agree with.
- Be accountable for yourself. Trading alone means that you cannot blame others for your failures and they cannot blame you for theirs. You do not need to contend with feelings of guilt and can feel empowered by your own decisions when you are successful. Similarly, you don’t need to deal with the complex emotions and psychology that often come with dealing with a group of people.
- You can experiment to find what works for you. If you are trading on your own you can try out new strategies based on your self-education, experience and research without having to ask for permission from others. People in a trading group often think alike and trying to do something different will probably be met with heavy criticism.
If you want to trade with a group, it is probably worthwhile to first trade alone. This will allow you to develop your own philosophy of trading and help you to develop an understand of your psychology when you are starting out. You will then be able to find a trading group with members that have the same philosophy as you, allowing you to fit well into that specific group.