Lessons from the Pros

Get a Trading Buddy: Part 2

In one of my recent articles, Spell Out Your Trading Plan and Get a Trading Buddy, I shared a story of a motivated student who was able to take Online Trading Academy teachings about options, apply them, get cash flow going, and supplement her regular annual income at first, and then eventually embark on the full-time journey of just trading for a living. In that article, on which I have received a lot of emails, I focused on the need of spelling out a trading plan and also having a Trading Buddy.

However, in this article I will solely focus on just one point, that is, get yourself a Trading Buddy. One of the Online Trading Academy graduates emailed me the following comments which I would like to share with the general reading public. It does partially concern the issue of a Trading Buddy. Below is her email:

Hi Josip,

Just wanted to let you know how much I enjoyed your recent article. It was very inspirational. I think it is important for Online Trading Academy students to know that it takes time, even years to become a great trader. I have been trading for two years now and remember feeling disappointed after the first year for not being profitable. By having a strong desire to become a better trader, I kept on learning by taking Online Trading Academy classes, listening to Extended Learning Track (XLTs) programs and reading books. Today, I am still not as profitable as I wish. However, I am a much better trader than I was a year ago, and less likely to walk into the traps the market presents. I also became more disciplined although not quite at my goal yet. It may take me another two years to become a consistently profitable trader, or may not, either way, I will keep on learning.

Regarding the Trading Buddies, I did not have much luck yet. I did send weekly reports to 3 Pro Trader classmates for 21 weeks. They encouraged me often, and that helped, but did not critique any of my trades nor have I seen any of their trades. Time is a precious commodity and many Online Trading Academy students are busy with jobs and family and maybe just not confident enough to give advice. I will be retaking the Options 2 class in March and in April, I may find someone then.

On Jan. 25th, I placed my first options trade. Since then I placed some single and vertical (bear call) spreads. As promised, I will send you the specific trades at next expiration day. I am not in the green zone yet, however, never lost more than I was willing to. I started to feel more comfortable with the platform yet still lot more to learn. I have been reading your Lessons from the Pros archives – many more great articles.

Hope you and your family are doing well.

As a reader, you can see that what is most personal is also most universal. I recall when I was a novice trader and things did not go as I had anticipated, I was feeling down and greatly disappointed. At that time, I was under the impression that I was the only one experiencing those sentiments until something changed me. I picked up the book, Market Wizards, by Jack Schwager and reading it altered my view completely. Since 1993, he has written more than just one book on Market Wizards, but that very first one articulated the very same emotions that I could not put into words. In the simplest terms, every master was once a disaster. I highly suggest reading his books which are basically interviews with top traders.

The student in the above quoted email felt discouraged, too, yet she kept on learning from her mistakes and growing. In the middle of the email, she mentions that finding a Trading Buddy does not come so easy. This is an aphorism, a universal truth. It takes a long time to find a true friend; it also takes a long time to select the right Trading Buddy for you. However, keep in mind that whoever you are seeking (a Trading Buddy), they are also seeking you. Attending more classes at Online Trading Academy places you in the environment where like-minded people are. Keep in mind you just need one or two people on your mastermind team. Also, be flexible to change them; sometimes Trading Buddies have a different trading style. Do not feel bad for replacing them with ones that match your style. It is just like trading, do not hold on to the losing trades. Do not hold on to the trading partners who are holding back your growth.
In fact, the student mentions above "…they encourage me but do not critique my trades…"

Obviously, they are not the best trading buddies to have. I stated that point very clearly in the last article. Trading Buddies who are too agreeable and too polite do a great disservice to us. Keep in mind that politeness invites distance, while honesty builds bridges.

In short, get yourself a Trading Buddy. But prior to that, come up with a list of characteristics that you would like them to have, such as trading experience, honesty and integrity. Good trading.

- Josip Causic