In the world of trading, it can easily feel like, everywhere you look, someone is either sharing a trade idea, claiming they made a profit, or giving advice. It can be difficult to know who to trust, so we've put together this guide to help traders and aspiring traders determine who might be worth listening to, and who to ignore.
Are the trader's profits verified?
When comparing trading communities, educators, or traders, we do strongly suggest assessing whether or not a trader's results are verified.
If you're at all familiar with Warrior Trading, you've likely already heard that our CEO Ross Cameron's profits are verified, and that the education we provide is based on the strategy he has used to obtain those profits. You can click here to learn more about Ross Cameron's audited and verified profits.
To strengthen our approach to transparency, we launched a compliance program years ago that allows members in our chat rooms to apply for profitability badges. Click here to learn more about that process.
Does the trader have an established strategy?
Even a profitability badge is not a prompt to follow another trader. Mirror trading is not a long-term success strategy, and does not help anyone learn how to trade on their own. It can lead to large financial losses. Click here to learn more about why mirror trading is an unnecessary risk..
Valuable learning requires more than simply knowing what stock someone traded and where they entered and exited a position. There should be reasoning behind the decisions made, otherwise the trade may have been simply luck or a gamble.
Our Warrior Pro curriculum includes the Day Trading: Strategies and Scaling course, as well as advanced-level classes like Algo Scalping Strategy, where Ross shares what strategy he follows to determine how to trade. The Pro curriculum also includes classes taught by Warrior Pro Graduates where our members can learn strategies from other verified-profitable community members. (Click here to see the full list of classes we offer).
As part of the community access available with a Warrior Pro membership, members can also benefit from mentor sessions where mentors review various topics, specific trades they took, or may open up discussion to Warrior Pro attendees.
What to Look for in a Chat Room or Trade Idea
To help gauge whether a fellow chat room member has an established strategy, it can be helpful to look for context with their trade ideas.
We find that the most effective trading commentary includes the reasoning behind a trade idea. For example, seeing the comment “TSLA” in the chat room would not be very helpful because it gives no context to what’s going on with the stock. However, seeing “TSLA is moving higher on strong earnings, and I feel bullish” would give members much more context.
How the Warrior Trading Chat Room Can Help Filter the Noise
Warrior Trading community members may eventually find that they would benefit from a customized chat feed. Members with chat room access have the ability to filter the chat feed in order to only view comments from verified profitable members, to view comments from specific people they've selected, to hide certain traders' comments, to only view posts that utilize the cashtag symbol, and more. Click here to learn more about filter functions in the WT chat rooms.
Does the trader show both red and green days?
Even the best trader in the world would have red days. When trying to determine if any trader is worth listening to, it's important to determine if the trader shows "both sides of the coin," the good and the bad, the green and the red days.
Supporters often tell us that our community is one of the most transparent trading communities out there. Ross is known for showing both his red and green trading days, both to our community in our chat rooms, and via YouTube through trading recaps. We encourage all other community members to do the same. After all, the best way to learn from each other is to share what we've done right as well as what we might have done better.
Note that a Starter or Pro membership is required for access to our live stream. Click here to see membership options.
Is this strategy worth comparing to my own?
Learning another's trading strategy helps traders understand the logic that drives decisions of their fellow traders so that they can gain a deeper understanding and determine for themselves if there are any changes worth making to one's own trading.
While it can be both inspiring and intimidating to see others profit, try to remember that trading is a personal journey. It can be tempting to hyper-focus on someone else's trading strategy when you're not finding success on your own. This can feed into the emotional side of trading. Chapter 14 of Day Trading: The Basics introduces this concept of FOMO (members can access that chapter here) and our team covers these topics in-depth in the Trader Rehab course (members can access that course here).
If another trader’s strategy has inspired you to adjust your trading style, and you've determined that you're emotionally ready to make an adjustment, be sure to ask yourself the following questions first:
What size account are they trading? Is it similar to the size I will be trading in a live account?
What is their position share size? How much of their account is being risked by taking this share size? Is this the amount of my account I would want to trade and risk?
What kind of risk management are they discussing or showing? Do they have stops? Do they have a max loss? Are they cutting their losers?
What is their trading style and strategy? Where or how are they finding these trading opportunities?
What is their experience level? Are they a newer member? Did they complete classes? Are they verified profitable? Click here to learn about badges like the Star Student badge, verified-profitable badges, and how to determine if someone is a newer member.
Are they consistently showing their winners and losers? Do they have more winners than losers?
Are they showing realized or unrealized gains?
If you haven't yet created your own trading strategy, our Warrior Pro curriculum can help you answer the following questions:
What is my trading plan? You’ll need a plan as a starting point to build on. Chapter 14 of the Strategies & Scaling course provides a worksheet for members to put their plan in writing. (Members signed into the education portal can access it here.)
Do I have risk management parameters for max loss and stop limits?
Have I practiced this strategy in a trading simulator and demonstrated at least a month of consistent profits?
Am I reviewing my trades and metrics consistently? If so, you should have an understanding of what you do best and where you can improve due to a lack of consistency or accuracy.
If you are trading live: Have I called my broker to enable a max loss on my account?
Remember that practicing a new strategy in a trading simulator is the best way to minimize losses. Click here to learn more about our trading simulator and simulator subscription, or click here to review our memberships which may include special offers with simulator access included.
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article