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Advantages of engaging in FX trading alone

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Advantages of engaging in fx trading alone

We take a look at the benefits of engaging in fx trading alone on a daily basis.

Often people toy with the idea of forming a trading group.  They do this so that individuals in the group can come together to take joint fx trading decisions each day.  Unfortunately, it is only a matter of time before people drop the idea of trading in this manner.

Advantages of engaging in fx trading alone

  • When you trade alone, you retain the freedom to make all your trading decisions without having any reason to explain the rationale behind the decisions to anyone.  The time and effort you dissipate on trading will now go to what the market is doing  and how you are supposed to react to it, instead of trying to keep up with the psychology and trading dynamics of other members of the group.
  • You are free to run any experiments without having to seek approval from anyone. This is especially so if you are the one managing the pool of funds in your trading group. Even when everyone is managing their own portfolio, certain input from traders in the circle will make you dump an idea before you even begin testing it on a demo account.
  • When you trade alone, no one can point to you as the cause of their failure. Therefore, you won’t have to waste time trying to justify your trading action, or feeling bad about being responsible for the loss witnessed by another trader.
  • When you win or lose a trade, you will be happy to know you are fully responsible. You will not be able to shift blame or credit to someone else. People who take delight in blaming other people for their woes may not like this, but those who always take responsibility for their actions will find this very empowering.

When you are trading in a group, you will always have to justify any trade you are about to take. This could end up leading to second guessing your trading strategy. There is equally the added pressure that comes with growing your account to the level of the other traders.

If you must trade with other people, you need to first of all trade alone for a while. This will help you develop your own trading philosophy and help you understand what your views of the market are.  Of course not everyone can trade alone though, as it can be quite tasking. Trading alone requires a trader to have certain beliefs and values, which must be part of his/her character. Since everyone is born with a different set of characteristics, not everyone will be able to embark alone on the high stakes solitary journey that is trading. Some people need others to reflect back their ideas and make judgements. Anyone whose style is to look for solutions by talking to others will find solitary ventures frustrating and ultimately unrewarding.

There are many who do not believe that they have the capacity and ability to successfully master the art of trading. Such individuals need steady reassurance before they can take the first step towards the actualisation of their goals. Individuals who have this character trait may only be able to find success in trading when they are constantly in the midst of other traders.

One other solution is to have a trading mentor, perhaps picked up from a paid trading course that you take.



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