Broker/Data: Mirus Futrues, Zen-Fire, IQFeed, Kinetick
Favorite Futures: 6E, CL, GC
Posts: 132 since Apr 2010
Thanks: 22 given,
Having a trading buddy might be beneficial for some as long as it isn't Larry, Curley or Moe. Carmen Electra might not work either. I asked my wife and you dont' want to hear her answer.
A good trading buddy would need to be someone that restricts idle chatter, knows and trades the same system you do, expresses their thoughts quickly and clearly, doesn't get emotional (traders with tears in their eyes always drag me down) and they should be constructively helpful when asked for advice. Now, good luck in finding such a gem.
One thing that I have found to be very helpful (if your trading method is very objective) is to have it coded by a professional programmer (preferably one who trades) to produce the exact signal entries that you would identify if you were hunting them down yourself. That's what computers do best...crunch data, measure, calculate, anticipate and spit out an answer (signal). Humans are best at those parts of trading that require actual thinking such as trade management. Computers can get really stupid when selecting or managing trades for several reasons...but rooted in the fact that they just can't think.
But it sure takes a load off to have your computer do the dog work and then warn you when a potential signal is forming for your consideration. This frees the trader to do the fun stuff.
Personally, my computer has become my trading buddy. It's always on time, doesn't drink or eat much and it doesn't ask for half the take at day's end. My wife calls it my mistress. I sense jealousy.
i don't see the point to have someone to talk to that trades the exact same thing with the exact same setups.. thats like having two of the same indicators on your chart... the whole point is to keep an open mind about what others are doing, what they're looking at.. for example, i was short and had 20 points in the bag in ym, i see buying coming in on tape, and my buddy was telling me that this was an area to go long on his system, an important area and I know he's profitable, so i booked profits and closed the trade. Market shot up after that... that doesn't seem distracting to me if you understand your own system. If my system was telling me to go for bigger profits, and i didn't see anything on tape, i would have decided to hold...
Same thing if someone trades something else, like the USD... they're usually seen as a flight to safety, so it SHOULD move inverse to equities... If my buddy is mentioning to me that dollars is strengthening, my other buddy is buying, i see buying on tape, then why wouldn't i book profits and close my short position? Not distracting in the least bit
*****I do have to note that it is important to trade with someone that has experience. Otherwise, its distracting as hell.. i really don't wanna hear someone go long, then go short, no no no go long, then go +5 ticks im flat.... if you wanna listen to that join stocktwits.. there are a bunch of newbies that papertrade and report fake fills all day long. Thats a waste of time and not constructive. Theres also alot of em on elitetrader