You can trade all by yourself but you will do better with the right trading circle, so I will give you 5 reasons why you need a trading circle.
Your trading success is in no doubt tied to your trading circle.
Trading is one career you shouldn’t embark on alone, as there is a lot of emotional and psychological weight that comes with it.
The outcome of every trade does not just affect you alone, it affects everybody connected to you.
Trading Circle
A trading circle is a team of traders learning and interacting together to help every member achieve their trading goals.
There are many gatherings of crypto traders with thousands of members and community heads interested in selling their books and mentorship courses to as many that are interested.
Belonging to different large communities in some cases does not develop you as a trader but rather increases your profit thirst and impatience with mentors and community members posting a daily outrageous profit.
Community pressure has led some people to take loans, borrow or invest in trading with amounts they are unwilling to lose, and increased their indiscipline via over-leveraging, and FOMO which are part of the worst crypto trading mistakes.
5 Reasons Why You Need A Trading Circle
Emotional and psychological Support
Trading is an emotional business; fear, hope, doubt, excitement, and greed will always be present.
Your ability to master and control these emotions makes you a better trader and this could be a problem when you are going through it alone or sharing your pain with people who can’t relate to what you are going through.
An inner trading circle is more like a trading support group, where traders can share their pain, joy, mistakes, experience, strategies, and knowledge to inspire, motivate, strengthen and support one another.
To Build Consistency
Consistency in learning and practicing is the major key to success in this field.
People come into the trading space with so much energy, vision, and passion only to grow cold after a losing streak or losing an account.
After losing an account or experiencing a losing streak, some traders take a long break and only a few get to return to still lose some more and quit trading for good.
A trading circle is the only reason why some traders check their charts daily which indirectly helps in backtesting and spotting good opportunities that may prompt them to go live again after losing an account.
If you want to analyze the market every day, you need a trading circle that will draw your attention to the market even when you don’t feel like checking the charts.
Trading too many coins could be a distraction, imagine drawing a setup on BTC/USDT, ATOM/USDT, KCS/USDT, TWT/USDT, JST/USDT, FTM/USDT, and SHIBA/USDT. Only to miss the higher probability trades while paying attention to others.
A circle can help you focus on just two pairs, imagine trading only GALA/USDT and BTC/USDT for two years.
Think of the mastery, the precision, and the understanding around these two coins.
This doesn’t mean you will not trade other commodities when dropped by a team member, but since everyone is focused on a few commodities, it means every setup has a higher chance of playing out as predicted.
Accountability partners
I learned the power of accountability partners after I leveraged an inner circle to achieve a two hundred and ninety-four days streak in a challenge.
There are days you just want to quit or take a long break, then you look at your trading circle and change your mind.
Another reason to be consistent, and dedicated to trading is the fact that you are accountable to a circle, you may need to explain certain decisions and also have people looking up to you for advice.
It’s one thing when you answer to the circle but it’s a different ball game when you can’t quit or make some avoidable mistake because some people are looking up to you.
That’s another lovely thing about a circle, they look up to one another for strength and support, so everyone is accountable.
The fact that everyone has to share their bias on their favorite pairs means you have to do your homework and give the best to the team.
Everyone is relevant in a trading circle.
Learning and Mastery are made easy.
It’s difficult to pass a course when you barely like the teacher.
Part of the activities of a trading circle is studying as a team, and learning from team members.
Learning is fun and easy, and mastery is easier since you get opportunities to teach everyone your strategies, and share your trading plans, mistakes, trading journal, and experience.
You perfect what you teach.
Increases confidence
Have you ever missed a good setup that played out as predicted just because you needed an extra confluence?
That’s what a trading circle does.
They supply that extra confirmation, making it easier to cross-check your bias against theirs.
Lack of confidence and overconfidence are deadly, the earlier works with fear while the latter works with greed, hope, and excitement.
Many thoughts cloud the mind whenever a trade is to be taken, and these could result in missing a very good entry and rushing in late only to lose or going in too early and risking too much.
You have extra confidence when others are also having the same bias using different trading strategies and confluence.
The absence of confidence will always trigger bad decisions like adjusting stop losses, late entries, gambling, and bad risk management,
How To Start Your Trading Circle
Having looked at the 5 reasons why you should get a trading circle, it is important to note that a bad trading circle will ruin your trading career and mindset.
Here are some steps and things to look out for in a circle
1. Like minds and goals
You would want a circle that has your kind of market mindset and similar trading goals.
For example, if you see trading as a long-term business and believe in compounding interest, you have no business with people who have short-term goals and like to gamble.
2. Mutual Respect
Every trading circle has to respect set goals, rules, agreements, and one another.
It is difficult to teach, interact and learn from disrespectful people.
3. Purpose driven
Respect and goals are not enough, your trading circle has to be purpose-driven, dedicated, and willing to pay the price for success just like you.
4. Optimistic
Having people who believe that failure is just a ladder to success is priceless.
Conclusion
The way to success in trading is not easy, it can get really lonely, scary, and difficult. It’s not a way you want to walk alone especially when there are people who are also in need of someone to walk with.
Take your time to select three to four persons around you that you can work with or check out our telegram community, observe and interact with the traders there and pick the persons that meet your criteria, I would want to hear about your experience trading alone or with a trading circle.