Man is a social being. We love work not only for money or for a career, but also for the fact that at work you can see the smiles of friends, talk on different topics – just get distracted when the roof goes. Trading is something akin to freelancing: a trader works on himself and manages his time. And he chooses the place of work. From the point of view of many, the house simply relaxes, negatively affecting the results. Collective trading is a form of work, where a trader is part of a team, where you can always consult, where you can always learn something new for yourself. But not everything is so simple. Which is better: collective trading or is it individual?
Benefits of Collective Trading
In theory, collective trading can be understood as a group of people who are engaged in solving a single task (trade) in a single, relatively speaking, room. The option of collective trading remotely (forums, merged groups, etc.) also takes place, but the essence does not change. Traders can solve problems both single and individual. In the first case, this is an analogue of a company (investment fund) whose members make money together. In the second case, collective trading is more psychological support and the opportunity to consult.
The advantages of collective trading:
- There is an opportunity to discuss the situation. True, the advice of others is not always helpful. Sometimes it is better to think with your head, rather than go for it. However, in the case of brainstorming, you can come to a single idea, because truth arises in a dispute.
- It is possible to get third-party capital for management. Here we are talking about a team that is working on a single goal – to multiply the money of investors. And the trader does not manage his money, but strangers (analogue of leverage). However, the understanding that the money of others and less responsibility for them (the risks fall on the shoulders of the investor), relaxes.
- It is possible to trade around the clock. This implies duty. On the one hand, this opens up opportunities for the application of a number of strategies. On the other hand, a trader must make decisions regarding deals opened by another person (and make decisions about opening new ones). In other words, the trader has to answer for his actions to the whole team. Error in individual trading – its own mistake, an error in collective trading – the problem of the whole team.
- It is possible to solve the problem of the workplace. The implication is to change the house with its crazy environment (wife, children, cats, dogs and other animals) to the office, where the work environment is almost always.
Trade in the team performs the main function – psychological, or rather the function of discipline. The team does not allow a person to relax, forcing him to adhere to the adopted strategy, instructions, schedule. In a healthy team the spirit of competition arises – the desire to get better results. And combining the ideas of a team can lead to a synergy effect.
Are you already ironing a suit, assembling a laptop and other trade accessories? Do not hurry. Not everything is as perfect as you would like. Collective trading has its drawbacks, which you will learn about in the next review. Add your comments!
(To be continued)