One of the factors that most benefits a trader, in the long run, is how he communicates with his followers. It is understandable that many may believe that results should speak for themselves, and that is respectable, but everyone must remember that followers do not have to trust your strategy, and that trust must be earned. One of the ways to earn this trust is through communication and there are several ways to do this.
A trader can be an excellent fund manager, obtain excellent results, but if in a moment of volatility where the drawdown of the account increases, he does not communicate with his users, they will lose confidence and stop following him, which is a pity if he really has good results in the long term.
💡 The objective of this article is to provide some tips on how to communicate in a better way every change that happens, every modification in the strategy, every unexpected event that we receive.
In this Article
When to communicate
We have two types of situations in which communications may be necessary. The first one is when unexpected events happen and the second one is for regular communications, also known as expected events.
It is important that when a position is not performing as expected, a problem in the market, a problem with the algorithm of the strategy or anything else that can be considered something out of the ordinary or unexpected, the trader communicates to his community.
This way all followers will know what to expect and will not feel that their funds are at risk. There are always risks, especially if the trader trades futures, but it is important that the trader has a plan of action for unexpected situations and communicates it to his community.
Let's suppose that a position is open longer than the trader expected, and instead of closing it, the trader decides to keep it a few more days because he knows that there is a pattern that can benefit this trade. He then communicates to his followers the reason why he will change from the usual strategy, and the actions he is taking to minimize any additional risk.
This will affect users in two ways. On the one hand, there will be those who will remain calm and do nothing, and on the other hand, there will be those who decide to disconnect from the service assuming the loss of the open position (when we implement the Hard Disconnection). In both cases, the users will be the ones to decide how to proceed depending on their profile.
The communication of unexpected cases is the most important because they allow us to maintain the level of confidence in the strategy in the long term.
Weekly, bi-weekly or monthly communications on how the strategy is working, actions taken, improvements implemented, and anything else relevant to the service.
This is nothing more than demonstrating that you are present beyond the operative. In many cases, even if everything is going perfectly, users are very pleased that the trader communicates how he is doing, how he sees the market, and how he thinks everything will continue. As if it were a small report.
This small detail really contributes a lot to the followers.
Where to communicate
We have already seen the moments in which we should communicate and what kind of things we should communicate, but how do we do it? What are the best channels to do it?
Zignaly provides two types of tools for traders to generate a relationship with their users. Each one with different characteristics according to each trader profile.
Within our official Discord channel, all traders have the opportunity to have a category specifically assigned to their service. Here they will be assigned a specific role of Trader and will be able to communicate results, talk to their followers, answer questions and generate a connection with their users in the way they consider appropriate. Always respecting the basic rules of behavior and without disrespecting any user or provider of another service.
Without a doubt, it is the fastest way of communication, where all our community will see it and will be able to interact with each other. If you want your own group in discord, just let us know.
Within the same profile of our service, we can communicate to all our followers any updates. A good thing about the Feed, in relation to Discord, is that not all our followers use Discord, but definitely, all our followers do use the Zignaly platform, therefore they will receive a notification every time we make a new post.
The feed allows us to accept comments or not in each post, which allows traders who are more reserved to use it as an announcement board. Although this is not ideal, it is respectable as some traders may feel pressured by some comments, causing them to modify their strategy due to the pressure from the community.
Each trader should choose whether to accept the comments or not, you can even choose this on each post independently, allowing you to interact with your users at certain times where you will not be influenced.
A trader can use both Discord and the Feed, it is up to each provider, but keep in mind that this requires a certain level of time and to disappear or stop communicating can be negative for the trust of your own users.