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Trading Rooms: Nuissance or Helpful?

Debates on internet trading chat rooms have been going on for as long as the internet itself has been in existence. No one can agree whether these services provide an added benefit to individuals who wish to become fulltime day-traders. Nowadays with so many chat rooms covering every type of market and products that its dizzying where to begin to find which one is the right for the beginning traders.

Trading rooms offer every need to every individual, from day trading the E-minis to stocks to Forex. There is also trading rooms for commodities and options. From day trading to swing trading, the main attraction is day trading since every trade is live and there is more action. Swing trading in chat rooms doesnt muster up the excitement since not too many trades are placed.

Many claim that trading rooms help further their understanding of the market, of themselves and discover new trading methods and approaches. Because of the camaraderie among the traders in sharing their experiences, they tend to learn from each others mistakes and weaknesses. In doing so, they learn to become aware of these mistakes and try to avoid them, thus quicken the learning curve. From their interactions with their fellow traders, they learn to see who they are as traders with feedback from others. When they make comments and get immediate feedback they can identify what state of mind they are in as well as their true personality appears when confronted with the market. This provides invaluable information in understanding their nature when trading. Some would become emotionally high and excited while another may be angry and vengeful and yet another may be wishful and hopeful. All these interactions bring out a new phase in the new trader to learn about himself and his psychological make-up. As for market understanding, he learns the psychology of the masses more than any particular strategies or setups.

Why then trading rooms have many complaints against them? Each individuals background and circumstance is different. Not everyone is able to day trade, either by the nature of the stress of day trading or other hindrances such as not financially or competently prepared enough. Some are well suited to swing trade or hold a long period on a position while another cannot stay more than two minutes in a trade.

Each chat room has a particular style and strategy in trading the markets. Some are for scalping trades while others for holding longer. Some encourage to trade more than 20 trades each while other limit to 5 trades maximum. Some use indicators while other use market internals such as the volatility, times and sales and the level II to trade, while others use patterns and price action to trade.

The problem with chat rooms is that they tend to be distracting. Trading requires a high level concentration, particular in day trading, where many signals must come in synch in order for a setup to become apparent. Judging and measuring the probability of winning on that setup has to be considered as well. When there are chatters that spend time socializing, they are in fact removing their own concentration from the charts and markets. While some are there to avoid boredom or find human contact, they distract others from trading. Some are there to wait for the signals and calls from the experts to take their trades. In short, there are many different motives and reasons why the traders are there, sometimes not really to trade.

Most times, trading rooms are a necessary step for traders to mature and discover his own strengths and weakness. But it usually comes down to opportunity cost: time and money. It takes time to learn on ones own. In order to accelerate the learning process, money needs to be spent to train with a mentor, an instructor or a book. This money is also needed to trade in real time with real money to grow as a trader. In the end, how much the trading rooms charge per month is really issue. Is one willing to pay a specific amount every month? Each trading room has its own strengths and weakness. Some are obscenely expensive while there are others that are free. Looking for the right one that fits an individual traders personality, trading skill level, financial status is the real answer.

The main problem comes from individuals not knowing what he wants and how he begins. Many dont know if his/her problem is psychological or strategy or money management. Hence, they tend to move from trading room to trading room to find out what is out there and what possibly want help pinpoint their deficiencies. But the most important factor is probably the expectations by individuals from these trading rooms. There are services that tout they can convert anyone into successful traders in a short period of time. Such deceitful marketing campaigns create mistrust against others that do provide legitimate services. The gap of delivery by the trading rooms and the expected receipt of service is what cause such problems. One must do due diligence and ask many questions. In asking those questions, he can find in himself what hes looking for.

About the Author

Larry Swing
CEO & Head Swing Trader
swing trading with mrswing.com
theboss@mrswing.com
+1 (281) 968-2718
Yahoo & Skype ID: larry_swing

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