A trading community is exactly how it sounds… well almost.
These types of communities are typically based on a social platform which creates a network of retail traders at just about every level. It is a place where knowledge and strategy are shared and community members thrive together.
Many trading communities are sprawling all over the internet these days and they are in just about every social network around. These communities vary in scale and accessibility. Some are elite clubs, some are fee-based and some are free.
What to Expect Out of a Trading Community
For the most part trading communities are built to be a resource for new traders to learn from those with knowledge and experience. Some communities cater to those who are seeking advanced knowledge in trading as well.
Beginners can usually find a free community to learn basic swing trading and even options trading. Advanced options trading, day trading, and futures trading communities are often found to have some kind of membership fee. These fees can be anywhere from $50 to $1,000 per month.
You will have to do some research to decide if any of the fee-based trading communities are worth it. Generally, the fee-based communities will provide live streaming services and sometimes two-way voice communication for live education.
What to Look Out For
Whether you have searched the topic with your favorite search engine (here’s looking at you google!) or just happened to be reading our blog, you are reading this article for a reason. Let’s get to the point and talk about what makes a great stock trading community great.
It is hard to find a large group of like-minded people to build an in-person trading community so ultimately social networking is the answer. Social networking provides a platform to share knowledge and experience. Facebook groups and online forums are really just communities centered around a platform that is designed to keep you on it, and of course, show you ads from the platform itself (not necessarily the community mods ads, but Facebook ads in general!).
The bottom line is, a trading community is really made up of the people in it. The people are the most important part and that includes you.
It’s all about the people who build a good trading community. These folks are key in developing a set of administrators and moderators to maintain the quality of the community. They have many roles in keeping the community clean, engaging, friendly, and thriving. Sometimes this is a hard task, and some communities to a better job than others. But a challenge it is, none the less!
Also learning material is a must and even free communities must have a good amount of resources available to learn from. Facebook and online forums are great places to meet, talk stocks, and even store content however they are not great for live communication and streaming. There are much better platforms for this out there. Which leads me to my next point…
What Community Platform is Best?
I believe this is the kind of thing that Discord was made for. There are many trading communities built on the Discord platform because it provides just about everything a good trading community needs. Discord does provide live streaming however it has limited attendance capability for the time being. $ZM (Zoom) is currently one of the best platforms for live streaming however, the developers of Discord are hot on their heels. Especially since $MSFT (Microsoft) now owns Discord!
A Discord server is quite intuitive and it is an easy platform for a new user to learn. It is also easy for an administrator to set up. There is a built-in place to store resources and learning material. There is a way to build many chat and voice channels within the server and this provides diversity, as well as organization. One server can cater to traders at any level of experience.
What to Expect in the Content
It doesn’t matter if you are just starting to learn how to buy and sell shares or if you are opening and closing complex options strategies. True traders never stop learning. You should expect an extensive amount of trading information and resources consistently being added to the library of content.
Whether it is the blog content or trading discord server content, there should be plenty of reading material as well as videos explaining everything from chart analysis to trading strategy. There should also be trade ideas or (alerts) with details such as direction and price targets. Combining real world live stream analysis “as it happens” and studying videos before or after the trading bell is the best approach to learning!
What Should the Chat be Like?
The chat in a trading community is the center stage for everything from new traders asking questions to screenshots with chart analysis of trade setups. The chat in a good trading community should be flowing with moderators answering questions and sharing research.
The back and forth conversations should be the best part. When newer traders are asking questions and the moderators are providing great answers it is there for all to see. This is how a trading community thrives together.
How awesome is live streaming?
Every fee-based trading community should have live streaming services. Live streaming is a great tool that allows presenters to provide a live trading screen while explaining chart setups and trading strategies. This can be used for providing both long-term and short-term trading and investing strategies.
The live streaming services that are almost exclusively provided by fee-based trading communities are the main reason people sign up. This is where the moderators and presenters get to show their stuff.
With live streaming, the main attraction tends to be day trading. Day trading is becoming vastly attractive to new traders and the presenters must be on point with price action analysis. A good fee-based trading community will have a variety of day trading streams running at the same time. Presenters in each day trading stream will focus on specific markets from futures to penny stocks and large caps.
Other day trading streams will have presenters who focus on both simple and complex options strategies. More advanced yet still newish traders begin to understand the fundamentals of maximizing leverage while minimizing risk in these day trading streams.
Swing trading streams are not as popular. However, they are great places for new traders with busy schedules to learn how to trade more passively while they are at work or otherwise occupied during market hours. Swing trading streams are also usually held in the evenings allowing members to simply set up limit orders for the following day. Typically webinars are the medium of choice for teaching swing trading and happen less frequently.
What’s the next step?
Trading communities are an awesome resource for those who are new to trading, advanced traders, and everyone in between. Finding the right community for you can be difficult with the number of choices available on the web. Narrowing down the choices will take a bit of research. You should read a few reviews and look into the people running them a little. Being that most of them are built on social media platforms, they will often have a Facebook page that is free to join or at least follow. From there you can reach out to moderators and members alike. Get to know the people, people are what a trading community is made of. Find out who the moderators are. Get to know them, and make friends!
What is their background? What is their trading style or focus? What level are they at? Are they working a day job and trading passively or are they trading for a living?
That last one may be a little personal but most moderators are happy to share. I am a moderator and I have been an automotive mechanic for nearly 20 years. Now I am transitioning into trading for a living but for now, I find myself looking for a part-time afternoon job to bridge the gap.
Some of the moderators in our trading community are trading for a living and some are self-employed. We have moderators at nearly every level of trading experience. One of our moderators has even moved on to start his own Hedge Fund! The truth is that the moderators in every trading community are growing with you, constantly learning and honing new skills. They are always students of the market. Their willingness and ability to teach others while they are on their own trading journey is both humbling and rewarding. It truly warms my heart to be able to help people learn how to trade profitably, and that is what a trading community is all about.
**This article was written by Jeremy, a Bullish Bears Moderator. Feel free to reach out to him anytime in our Trading Discord and say hello.