HOWDY
PARTNER! ...
By: Mat Kirk
Email
OK so you've
done the courses, you've read the books and your new Pentium is
raring to go - but you're still missing the final and crucial key
to the whole equation - you're trading partner.
No not you're wife,
your husband, you're dog or your mum - did I hear you say your
broker, EXACTLY!! Now I know that theres a few 'seminar types'
who are hellbent on the ridiculous notion that you should'nt give
you're broker the time of day and if you see him in the street
its fine to run him over so long as nobody catches you.
This attitude is incredibly
childish and essentially wastes precious brainspace that should
be reserved for your next trading decision.
You have employed you're
trading partner/broker to assist you in 100 other ways other than
picking 10 out of 10 winning trades. Particularly if you're new
to the wonderful world of futures this person is absolutely crucial
in you're success or failure as a trader.
Given that you're in
business with you're partner and you're the MD, you must determine
together exactly what is required to assist your trading and how
you're partner can expediate the education process in a timely
and cost effective manner.
Lets run through some
key points when choosing and utilising the knowledge of a trading
partner to get the best out of you're trading career.
SHOP AROUND UNTIL
YOU'VE FOUND THE IDEAL PARTNER!
This ones pretty obvious
but its amazing how many traders I talk to that just sign up with
the first adviser they speak to. Most people will search harder
and longer for the perfect pizza place than they will for the
person who is supposed to be partnered with them in a pursuit
as important and complex as futures trading.
Call a few firms and
have them send out their information to you. But remember its
not a competition on who can send you the glossiest bunch of material
- its more about who's done it with feeling as
Bruce Lee would say.
Generally the first
conversation with them will give you a fairly good indication
whether they're the right person to be with. Don't forget you'll
be needing to talk to you're partner on a regular basis even if
your sophisticated enough to have an execution-only style of account
(which is only about 1% of private traders).
If you can have a relaxed
conversation with you're prospective adviser and feel like you
could ask a thousand questions over the ensuing months without
feeling like a dummy then you're on the right track. In property
all the gurus tell you its location, location, location - when
it comes to finding the perfect broker its rapport, rapport, rapport!
You don't have to have
barbies every Sunday with your adviser but it certainly helps
if you at least like them enough to talk to. If geographically
feasible a great thing to do is to arrange to meet with them to
discuss your requirements. This will help increase the bond and
further enhance the relationship when it comes to trading.
PLACE 99% IMPORTANCE
ON THE PARTNER & 1% ON THE COST
Most new traders do
this the other way around and are so keen to get the cheapest
brokerage rate that they forget about whether or not their new
partner is appropriate at all for their level and style of trading.
You're account balance
is a Ferrari and lets put it this way - if you've got a Ferrari
you don't get it serviced by a backyard mechanic just because
they're cheaper. Just do you're homework and be prepared to pay
the fair level of brokerage for who and what you want.
If you're system or
methodology becomes profitable only when the brokerage is reduced
by $10 per side then you really have to ask yourself if the system
would be better placed in the nearest bin!
Being fair in business
is of paramount importance- WIN/WIN is one of your mottos - so
if you're going to screw your partner to the wall on what he or
she gets from the business then you can't expect much from them
can you! The fact is you do need a lot from them and paying a
little extra can mean the difference between a successful and
a less than successful career as a trader.
HOLD UP YOU'RE END
OF THE BARGAIN
Many traders lose because
they're just plain lazy. 'If its worth doing then its worth doing
well' and the old 'Rome wasn't built in a day' goes a long way
in any field and in futures trading its particularly pertinent.
It's a long and laborious
road to educating yourself and trading successfully in the markets
so learning, reading and placing yourself on your own perpetual
education process is mandatory. Now of course with the perfect
partner this goal can be achieved in a much shorter space of time
in addition to being a more pleasurable experience.
If your partner has
read and can recommend some great trading books, checks out the
Web and can inform you of great sites, goes to seminars and can
tell you which ones are of benefit, can arrange and discuss data
and software requirements etc etc then its starts to become pretty
obvious how much time and money can be saved. (not to mention
the heartache and confusion of going it alone).
By now we've established
that the broker you're using is a partner and if he or she makes
a suggestion that will assist your learning process then at least
dedicate the time to reading the book or visiting the website
or spending the money on the recommended seminar next weekend!
ADDITIONAL KEY POINTS
TO NOTE
- TRADE USING YOUR OWN
SYSTEM -YOUR PARTNER CAN ASSIST IN DESIGNING A SYSTEM TO SUIT
YOUR EXPECTATIONS AND RISK PROFILE
- A PARTNER IS NOT THERE
TO HAND YOU 10 OUT OF 10 WINNING TRADES ON A PLATE
- WHEN YOU'VE DEVELOPED
YOUR OWN SYSTEM DON'T ASK ANYBODY WHAT THEY THINK THE MARKET
WILL DO
- REFER TO YOUR SYSTEM!
- DON'T CALL YOUR PARTNER
FOR A CHAT AS MARKETS ARE OPENING - THIS IS A TIME FOR ORDER
PLACEMENT RATHER THAN GENERAL MARKET CONVERSATION
- ESTABLISH WITH YOUR
PARTNER EXACTLY WHAT THEY'RE ROLE IS - IF YOU DON'T WANT THEIR
OPINION WITH REGARD TO MARKET DIRECTION THEN THEY MUST KNOW
AND ADHERE TO THIS IMPLICITLY
- DON'T WASTE YOUR TIME
AND YOUR PARTNERS BY TELLING THEM WHAT TRADES YOU SHOULD HAVE
DONE - IF YOU'RE DOING THIS YOU AND YOU'RE PARTNER NEED TO DO
SOME WORK ON PSYCHOLOGY AND AS TO WHY YOU'RE NOT 'PULLING THE
TRIGGER'
- ABOVE ALL, DO
YOUR BEST - ALWAYS! ENJOY WHAT YOU'RE DOING, ENJOY
THE LEARNING PROCESS WITH YOU'RE PERFECT PARTNER, MAINTAIN A
POSITIVE MENTAL ATTITUDE AND USE EVERY SITUATION AS A GIFT DESIGNED
TO GET YOU CLOSER AND CLOSER TO YOUR FINANCIAL AND LIFESTYLE
GOALS
