I tried an interesting experiment yesterday, which is that I invited a similarly-experienced friend to join me in trading the E-Minis for a few hours. Rather than sitting by myself as I normally do, I had someone sitting right next to me, looking at the same charts as me, playing the same strategy as me. I found it worked remarkably well -- didn't slow me down a bit, we played well off each other, and I found it helped my discipline tremendously: less second-guessing, more confidence while entering a trade (because we both agreed on it), and when either of us had those nagging instincts to jump ship, the other would often disagree (with reason) and the trade would turn out better. Sure, we lost a few, but since we'd both agreed on the entry and exit, we took the losers in stride. I realized that daytrading is typically a very solitary game, and I don't necessarily see the reason for this. Why is it so many people trade with the lock-yourself-in-a-room strategy? Even in prop shops, from what I've heard, it's often a room full of guys in their own worlds, sharing common physical space. I'm curious about others' thoughts on this ... has anyone else tried trading with another pair of eyes to help? --Noah
I've been trying, but I've yet to find another trader here in Key West. I even put an ad in the paper. I believe that a second trader would be a plus for many of the reasons you mention. I even thought about one trader putting on the trade and the second trader managing the trade. That way there should be less "emotional attachment" to the trade. Now if I could only find another trader where I live.....
I have been thinking of it as to educate people to my methodology as It is used sucessfully in another domain which is Pair Programming in software engineering. It's a new habit so it will be difficult to accept but as usual things must be planned and adapted from another domain.
As explained above, I intend to implement it for people in my group. Since everything must be done online, I will study software solution. Perharps you could do the same thing.
You said it...that's actually what originally sparked my interest in the idea ... I've been a follower of the whole Extreme Programming methodology (in which Pair Programming is central) and have seen some tremendous results from it, so I figured applying such a strategy to trading could be equally beneficial. --Noah
That is a good idea. With the Emini example cited, I think it's even more important for a beginner to have someone in the second seat. I recently started index futures after trading just stocks and options. It's a new and scary world for the beginner who is alone. Like Catman, I cannot find someone else in my area that would be interested in teaming up for a couple of afternoons a week. One thing that did help was monitoring a free chat room. The regulars in this room helped to ground me with basics of where they see support/resistance etc. as the day goes on. They post their trades and there are some automated hints and blurbs that help me. When I see them trading in opposite directions from each other, cutting trades short, and getting maybe only 2 points or taking hits, I know the waters are swirling and stay out. When I see them all lighting off in the same direction and getting good returns, I wade in too. They help me with their exits which has shown me big flaws in my own "guesswork" exit plan. After a month now, I've found a little confidence, had a couple of good trades, and generally avoided big loses. I had always been skeptical about chat rooms, especially general stock trading, but this experience has definetly helped me. Geo.