One of the things that has long bothered me about the trading community is, in fact, the lack of one. By that I mean there seem to be a lot more folks out there hoarding ideas, strategies, knowledge, and experience than those ready and willing to share.
Closely related to the above is the often heard comment/question in regards to system vendors, book writers, and any others willing to share the results of their research, etc. is “If it’s really that good, why doesn’t he just make loads of money trading it himself?” That’s an inherently distrustful question, which is at the root of many of the problems we have in developing a true trading community. It assumes firstly that the person in question is not using the approach they are discussing to trade and/or that if they aren’t that it’s somehow automatically no good.
I will agree that trading has its fair share of con artists. In that regard, it’s just like any other area where those who would seek to make a quick unethical buck operate. While a healthy dose of skepticism is certainly necessary, we cannot just paint everyone willing to share what they know (for free or for a price) with the same brush.
A great many traders have decided that to share their knowledge will somehow reduce its value and make their trading harder. Therefore, they feel that if others do it, there must be some ulterior motive. I’m just not buying it.
Sure, if you and half of the rest of the traders in the world are all using exactly the same trading methodology the perhaps there’s a problem. Things just don’t work that way, though, unless you happen to be trading in a fairly small market.
The fact of the matter is that we all trade differently. We trade different markets and instruments. We trade different time frames. We trade with different strategies. Even when all of that stuff is identical, there are still going to be variations in application. Let’s face it, lots of traders deviate from their trading plans, for better or worse.
Then there’s also the question of market size. Forex has become extremely popular in recent years, drawing in a lot of new participants. It’s the single largest trading market in the world. I will never believe that one trader sharing his or her personal trading methodology with even a few hundred or thousand people will have an impact on that market. It’s just too big and too diverse. The same could be said for a number of other markets, even if they aren’t quite the size of the one for currencies.
It’s true. There is an element of competition in trading. That can’t be avoided. You know what, though. Even competitors cooperate sometimes. Just think about car companies working together on joint ventures. That sort of thing happens all the time in all areas of business. People come together because they know that they can do things collectively that they couldn’t do separately.
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About the Author
John Forman, author of this blog, has traded for more than 20 years, is a professional market analyst, and authored The Essentials of Trading. He is an active participant in trading forums, consults for trading related businesses, as published literally dozens of trading articles, and has been quoted in a number of books and in the media.
** See John’s full bio.
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