Trading Buddy:
The Power of a Trading Buddy
Become accountable, build knowledge, and get support from a trading buddy.
Who needs a trading buddy?
One of the reasons you got into this game was to be independent, make your own decisions, answer to no one…
Ok, but…
Trading can be lonely, right? It’s just you the screens and your equity curve. And sometimes that’s tough.
Trading the markets is often a solitary endeavour, a mental and financial battle between the trader and millions of others on the charts like them.
Ultimately, the most successful traders can make their own decisions.
Yet, others can benefit from having a helping hand, so to speak, especially a person with more experience and a better track record.
Let’s discuss what a trading buddy is, the benefits of having one, and where you may find one.
Table of Contents
What is a trading buddy?
A trading buddy can take on two forms.
It may be a friend you may have met online or in person and discovered a liking for online trading.
Some traders are lucky to find trading buddies in their normal friends.
Alternatively, it can be someone you consider a mentor with success in the world of trading.
Getting the right mentor relationship means studying more about that trader’s experience, teaching style, willingness to share knowledge, and genuine interest in helping you succeed.
Yet, over time, they can become an accessible trading buddy like a regular friend to bounce off trading ideas, ask for advice, etc.
Trading buddies may be on similar levels in trading careers when considering experience, skill level, and financial power.
Alternatively, one could be slightly more advanced. Both individuals can share knowledge or trading ideas, hold each other accountable, and other benefits.
(Premium traders mastermind members get the opportunity to be matched up with a trading buddy.)
The benefits of a trading buddy
So, what can you gain from having a trading buddy?
Knowledge and trading ideas
Every trader should have individual strategies that complement their experience, risk tolerance, and skill level. Yet, a trading buddy can offer knowledge in certain useful topics you may be unaware of.
They could explain these concepts more simply than doing the research yourself, which would involve more effort and time.
Secondly, a trading buddy may be the mastermind for interesting, unconventional trade ideas.
While, again, a trader is responsible for their own decisions, a trading friend could provide an enticing trade set-up, which you may have missed through your analysis.
This isn’t to say that you will jump at every opportunity your friend offers.
Sharing trading ideas could help traders who have been out of the markets for a while to benefit from a potentially successful trade.
Another example of knowledge-sharing with trading buddies is trading style.
For example, let’s assume one is a swing trader while the other is a scalper. Frustrated by the latter, the swing trading friend can introduce the other to their trading style in a more personal way.
Most traders will have transitioned from one trading style at some point.
Doing this with a trading buddy who can be more honest and show you the necessary evidence is much easier.
Accountability
Trading friends can help improve each other’s weaknesses. For instance, one trader could be impatient while the other is patient. One buddy can instil their patience mindset in the other.
When the buddies review their trades for the day or week, the person with the patient weakness can be held accountable if they weren’t as patient as they should be.
Accountability is about correcting each other’s mistakes and reinforcing the right habits until they become second nature.
Emotional guidance
Human emotions can still be apparent while we are trained to be robot-like or neutral in trading, regardless of the outcomes. This applies in situations of wins and losses. When a trader performs well, being a little excited is common.
A trading buddy can ‘bring them down to Earth’ and advise them of the dangers of being zealous.
Similarly, a losing trader may be slightly angry or depressed.
The buddy can act as a sort of counsellor, reminding them not to take things personally, not dwell on the past, and always look forward to new opportunities.
General conversation
Let’s face it: financial markets have no entertainment value. It’s not to say that they should.
Yet, a trading buddy offers a way to converse generally about traded assets. This feeds into the earlier discussed benefit of knowledge and trading ideas.
Traders without a trading friend have no one to express their opinions and beliefs. Having a buddy makes it easier to voice these out, which may spark new concepts and bring different perspectives.
The goal is to present an opportunity for learning new information.
Also, conservations with friends can be entertaining and light-hearted, offering a relaxed environment from the stresses of trading.
Let’s face it, we all need to unwind sometimes… isn’t that why trading memes exist!?
Where can you find a trading buddy?
Premium members get access to our trading buddy system.
Once a quarter we announce the new buddy matching date, then ask anyone who is interested to throw their name into the ring for matching.
You then get introduced to another trader privately, and you can take it from there.
Traders have told us how instrumental a buddy matching has been in their journey. Helping them to improve massively and often making a good friend.
But if you don’t want to join us, you have other options…
The internet is immediately the first and most accessible place that comes to mind when seeking a buddy.
Yet, physically meeting someone is better due to the human element, which isn’t present online.
Traders should look at broker seminars and other trading-related gatherings in their area like meetups.
These provide a host of traders with different experiences you can meet and chat with.
Finding a buddy is like meeting any other friend. Forming a more trustworthy relationship through physical contact is easier than online contact.
Of course, finding a buddy you can gel with from a physical meeting isn’t always possible.
So, some online places to try:
Forums, like Trade2Win or Elite Trader, or Twitter (now X)
Get on there, make some posts, interact, engage and you may well find a decent trading buddy.
Final thoughts
It’s worth noting that a trading buddy isn’t someone to hold your hand when you are actually making the trades. So, they shouldn’t influence your ultimate decisions of what you buy and sell in the markets.
The buddy is there for you to gain more knowledge, take accountability for any wrongdoing, control emotions, and general conversation.
As with any new friend, give yourself time to find the right buddy that aligns with your goals and personality.
Good luck!