Today marks another step in my trading journey. I cancelled a subscription to a trade alert service.
I’d been a subscriber for over a year. It was a good service. It taught me a lot. I wanted to stay. But I needed to leave.
Over time, my way of understanding and trading the markets developed in a different direction from the service. It took a long time for me to realize just how substantial and problematic the disconnect had become. But when I stepped back and looked at my equity curve, I realized that my best performing trades were mostly ones that I had taken on my own–and that my most problematic trades were mostly ones alerted by the service.
Their trades weren’t bad; they just weren’t right for me. Sudden alerts left me chasing entries or exits. I often couldn’t execute adjustments to the official trade that required too much margin or reflected sizing different from mine. Or the stock was one that my account couldn’t handle. So forth and so on. The signal-to-noise ratio became too great.
Even with all that, I probably would have continued with the service if a particularly nasty hit to my P/L hadn’t forced me to recognize an even larger problem: the disconnect between my style and that of the alert service was starting to infect my independent trades! I was rushing trades and holding losers because my view of the stock and the market was being influenced by what the alert service was telling me–alerts based on a different trading style! Perhaps that reflects a lack experience, mental agility, or discipline on my part. Whatever the case, I needed to move on.
I’m not a better trader than the guy who runs that alert service. But I’m definitely a different trader than him. I can learn a lot from him. But I can’t copy his trades anymore.
Copying is part of learning. But as we grow, we must continuously reassess ourselves and refocus on the things that fit our evolving identities as traders.
Been there. Done that. Too many times. T, you hit all the marks of probably every trade alert subscriber. Starting out, one feels confident about how well the service would help improve their P&L and their trading skills. Once a string of missed, chased, or lost trades happens, one begins to modify and tweak the trades, which in essence is modifying a reflection of the trading style and personality of the trade generator. In other words, failing to take the trade alerts as intended while losing one’s own trading identity in the process. It takes courage to disconnect from something that is comfortable and familiar. It is not an easy task. Additionally, more props to you to be able to recognize who you are and what you need. I’m happy for you! And thank you for sharing! It’s a helpful reminder!