When we started SMB Capital not even four years ago we set out to do four things:
1) provide the best intraday training on the Street.
2) offer a payout that was fairer than I had received to our traders.
3) create a culture of perpetual learning, where we all learned from each other.
4) share valuable trading information.
Many retail and independent traders trade solo. I have tried this. I am informed that this may work for some. It did not work for me. Steve tried it. It did not work for him. JToma gave it a stab, and he couldn’t help just watching CNBC on his couch most of the trading day (how ironic!).
As traders we are only as good as our stocks. An environment that offers excellent trading ideas can turn a decent month into a memorable one. All it takes is a few good ideas shared per week to change even an month.
Creating this environment can be tricky. What information is relevant to share? A desk must be disciplined to share only ideas that lead to good trading opportunities. The air waves should be viewed as an emergency operating channel. If it does not relate to making money then the channel should be silent, clear for the next trader to offer a valuable set up.
And sometimes the sharing of information can lead to discord on a desk. Why is that guy always talking? I remember a noob years ago who called out fifty trades on his first day live. A senior trader loudly stalked over after the close and scolded,”When you start making money then you can speak, until then focus on learning how to trade.” JToma loves to share the entertaining story of a guy who got punched out for trash talking on his desk back in the late 90’s (kind of like the Myers/Hammels scrum this week at the Stadium). If people care about their performance there will be contentious moments. As long as everyone respects each other and the desk, then these incidents become forgettable.
If you are not connected to a virtual environment or a desk that offers value to your trading through the sharing ideas then you are trading at a disadvantage. If you are on a desk that does so then be the guy who keep offering excellent trading set ups. Be that trader who makes things better, pay it forward. One trader offering great call outs can change a row. One superior row and carry a desk. One day some of those you carried will pay you back with trading ideas.