So a new concept of ‘Squad Trading’ came about. This is simply jumping onto a Discord call and screen-sharing the same charts, and live-trading with a friend or group of friends. This is how trading solo versus trading with the closest members of your circle stacks up:
The Power of the Squad: Trading with Friends
When you’re trading with friends, the stress of trading comes down and is replaced by a relaxed atmosphere with a like-minded team. Here are reasons group charting just works better:
1. The Power of Joint Brainstorming.
- Double the Eyes: A liquidity sweep might be obvious to you, but a divergence may be clear to them.
- Filter Out Bad Trade Ideas: About to get sucked into the Fomo? Your friend may be able to help you stay rational.
- Objective Analysis: When emotions get in the way, your friend’s objectivity can guide you to better trading.
2. Eliminating Stress with Laughter.
- Laughter Lowering Cortisol Levels: Trading is no joke!
- Chit-Chat Defusing Nervousness: Keeping things light can maintain your nervous system during stressful trading sessions.
- Emotional Support: After taking a stop loss, having your friends there to laugh about it can help you avoid revenge trading.
3. Built-in Accountability.
- Enforcing Rules: Trading buddies will point you out whenyou’re overleveraging based on the trading plan you all agreed upon.
- Transparency: There’s no way to break trading rules secretly with an audience watching you live.
- The Counterpoint: The Freedom of Solo Trading
Squad Trading might be entertaining, but trading alone hasit’s advantages for more serious professionals
1. Complete Freedom.
- No Groupthink: You will never be influenced by others to jump into a trade you don’t understand.
- Absolute Focus: Trading live alone will ensure no distractions from chatting and other jokes are in the way of your analysis.
2. Swiftness and Efficiency.
- Fast Entry and Exit: You don’t need to get approvals from anyone else when entering and exiting the market in a matter of milliseconds.
- Full Responsibility: Being able to be accountable for your wins and losses can drastically accelerate your learning process.
How to Start a Successful ‘Squad Trading’ Session
If you want to go about ‘Squad Trading’ without affecting your performance, you need to create the rules of the game
- Designate a “Risk Officer”: Designate one person per session to act as the rule enforcer of risk and manage leverage levels.
- Utilize Screen Sharing: Utilize Zoom or Discord for screen sharing so both you and your trading buddy see the exact same charts and price levels live.
- Separate Friendship from Capital: Both parties need to agree to separate trading and friendship and understand that both are accountable for their own financial losses.
- Have a Mute Button handy: When the news comes out, implement a ‘silence period’where neither of you are able to talk to focus on the live market action.