One of the hardest things for traders to do is define what being successful means to them. A clear goal prevents ambiguity and ensures each party knows what they have accomplished. Without it, there’s no way to measure success (or failure); everything becomes academic after that point.
We all need support in our corner cheering for us; this is especially important if you’re a day trader with significant others who don’t quite understand what you do (or why you spend so much time doing it). Having someone else on your side can be very beneficial when times get tough, or things aren’t working out as planned.
Enables risk management strategies
One of the main reasons traders fail is because they can’t control risk. A shared savings account makes it easier to define and adhere to specific risk management techniques (e.g., stop-loss orders, diversification, etc.) because you know your trading partner will hold you accountable for following them.
Without a clear plan in place, traders are much more likely to take dangerous risks that destroy wealth instead of building it up over time.
Holds each other accountable
This benefit is closely related to number three; if you know someone else is watching your back and making sure you follow the rules (e.g., adhering to a strict money management strategy), you’re far less likely to do something stupid with your money.
Offers education and insight
While there is a wealth of information available online for traders, the vast majority of it comes from fellow traders or people who have never traded a day in their lives—having someone on your team who has been down this road before can provide you with an array of insights based upon their past experiences.
Furthermore, as long as both parties contribute to the shared savings account equally, everyone benefits from what each person brings into the fold.
Encourages better planning
In life, we’re often pulled in many different directions at once; unfortunately, trading is no different (primarily if you work a full-time job). Having a shared savings account with someone else keeps each party on track and encourages better time management skills.
It isn’t to say that these types of accounts keep traders from being distracted – every so often, something will come up – but overall, they encourage greater discipline, which can yield better results over the long term.
Provides extra motivation
Motivation is an interesting thing; it comes in all shapes and sizes, yet it’s one of those things we’re never quite sure where to find when we need it most. Having a partner – especially one who has your best interests at heart – can be just the thing you need to get going again if you’ve lost momentum or enthusiasm for trading.
If nothing else, having a shared savings account provides a built-in support system that can keep traders from giving up when times get tough.
Can immediately improve results
In many cases, a shared savings account allows traders to take their games to the next level almost immediately because they have someone keeping them on track and holding them accountable for what they’re doing. There’s no hiding behind words and promises here – everything is put into writing and agreed upon beforehand.
So if one person isn’t pulling their weight, then there’s no repercussion other than having less money in your pocket at the end of each day or week. It alone can be enough to encourage some people to work harder and brighter instead of achieving success through blind luck.
Is a natural “forcing function”
Humans are creatures of habit; the vast majority of us will continue to do what we’ve always done until circumstances force us to change. While having shared savings accounts doesn’t necessarily mean traders have to make massive changes, it does serve as an external questioning if each person is truly doing everything they can to become better at what they do.
Check out Saxo for all the shared savings account info you need.