The Benefits of Social Trading
- Author Mark Soberman
- Published March 20, 2009
- Word count 504
Trading on the Forex or in stocks can be one of the loneliest careers you can choose. Some people are happy living a hermit like existence, but studies have shown that social interaction is important part of the normal workplace and contributes to a happier life.
Trading has a number of issues that you'll need to be aware of. For instance, if you sit at the computer all day, you may find yourself compulsively snacking and also not taking exercise. You need to be sure that the physical side of your life is in balance by making an effort to work out, and by feeding yourself healthier foods, such as carrots and nuts, rather than candy bars.
This is just one aspect of trading, however. Due to the insular nature, traders can become withdrawn and incapable of normal social interaction, which is likely to result in a more reclusive lifestyle. There is a simple answer to this, in the form of forums of like-minded people on the Internet.
In particular, it is possible to find forums that discuss all aspects of trading on every imaginable market. Trading forums in general should be viewed with caution with regard to any hot tips that may be given. It is common for someone to try and hype a low cap stock in which they have just bought a large position, in the hopes that other traders will believe the recommendation, buy the stock in quantity and pushed the price up.
So what are you to do? You either sit alone in a room with no social interaction, calmly trading and going crazy from having no one to talk to, or you fall into the trap of chasing everyone else's hot tips.
There is a middle ground. You need to have social interaction, and it should be with people sharing the same interests as yourself, i.e. traders, but it should be with people who you know and trust, and whose stock recommendation advice you can safely ignore, at least until you have a chance to independently investigate it.
The answer to this is to join in a group of peers where you can build relationships and discuss items of interest on the forum without feeling the pressure to embrace all the views expressed. A lively interactive debate will help to clarify your thinking on the merits of any particular trade or strategy, and a widespread discussion is bound to introduce new points of view that you have not considered before.
Most importantly, however, you'll find that you are continually stretched and questioned by participating actively in a forum, and this will greatly benefit your own trading performance. Peer review of your thoughts and methods in interaction with others will keep your trading up to date and ensure that you always approach it in a fresh manner.
Mark Soberman of NetPicks LLC has been trading for over 20 yrs and offers free educational resources, online discussion forums, live forex and futures signal services, as well as live webinars.7 Secrets
Mark Soberman of NetPicks LLC has been trading for over 20 yrs and offers free educational resources, online discussion forums, live forex and futures signal services, as well as live webinars.7 Secrets
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