Trading Lessons

Online Trading in a group environment

Written by Noah Hochman

Trading remotely from is the way many seasoned day traders apply their trade. Most who do this are either newbie’s to world of online stock trading or are very experienced professionals. If you are not a seasoned trader than you may want to look for a day trading firm that rents desk space to traders along with various tools of the trade such as news feeds and technical analysis. The reason I suggest this for a while is not because the online brokerage firm will make money from the volume and liquidity you create by virtue of their agreements with a clearing house or are self clearing, but because day traders are skilled enough to be profitable at the early stages of their careers.

From my years of trading for, and managing the online trading firms that were the pioneers of this industry, such as Broadway trading, Schonfeld Securities among others, and teaching their methodologies to new and experienced individuals I have found one thing to be true. One pair of eyes can not take the place of a hundred. When trading in a group atmosphere, the advantages for the new trader outweigh the possibility of trading with the herd mentality, and a disciplined trader usually can overcome that. A new trader can only monitor a limited number of stocks and still be able to catch any subtle moves that may indicate a possible trade. By having a group of individuals day trading together, one person may pick out a sector that may be in play, or another may see a stock that is about to reach a new high and alert others to this. If you realize that you very rarely if ever will select sell the highs and buy at the lows you can truly benefit from trading in a group. Even the best traders will occasionally ask opinions of their peers and many still use online chat rooms and IM’s to stay connected.

Noah Hochman

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Noah Hochman

2 Comments

  • I actually started by trading in a day trading shop off Broad St in NYC. At the beginning I could only monitor about 10 stocks but it was wonderful when others in the room would call out a move in something that I wasn’t watching. The important th ing to remember when trading in a group atmosphere is to realize that you may be getting into a position when the guy that saw the move is starting to get out.

  • So true. Most of my life I’ve traded in the isolation of my home office. But I did take advantage of an opportunity to go to Chicago and trade in my brokers trading room for a short while. What a difference!

    Truth is, it was a lot more fun and I miss the excitement and the friendships. And, as you mention, there is a big benefit to having all those other eyes seeing things you may miss too.

    Trading from home, even with chatrooms and IM, will never compare.

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