"Relationship builder with access to opportunity."
Your net worth is your network. You find the deals that never hit the public market.
These are the stats that matter for your trading type. Know them. Respect them.
Your most valuable asset. But it depreciates if you don't maintain it.
Insiders outperform the market by 6-10% annually. They have the info curve advantage.
Takes years to build, seconds to destroy. One bad deal recommendation can ruin your reputation.
Networkers find alpha in "Information Asymmetry". You know things the market doesn't know yet.
You don't analyze charts; you analyze people. You talk to founders, VCs, and insiders. You trade information arbitrage.
You've probably said one of these. Here's why it's costing you money.
"It's not what you know, it's who you know."
True, but incomplete. If you know everyone but know nothing about value, you are just a well-connected bagholder. You need the skill to filter the deals your network brings you.
"Insider trading is the only way to win."
False. Information arbitrage is legal (usually). Trading on non-public material info is illegal. Know the difference. Speed of information is a legitimate edge.
"My network is my net worth."
Only if your network is profitable. If your network is full of broke gamblers, your net worth will be zero. You are the average of the 5 traders you talk to most.
You get the phone call before the news breaks. You have "Alpha" that algorithms can't scrape.
You listen to too many "smart people". You get talked out of good positions and into bad ones by charismatic friends.
Your phone is your trading platform.
Breakfast with a founder. Checking in on a portfolio company. "How are the Q3 numbers looking?"
Scanning the "Alpha" chats on Signal/Telegram. Filtering signal from noise.
Meeting a VC friend. Sharing deal flow. "What are you buying?" "What are you selling?"
Reading the pitch deck you got sent. Verifying the claims. Calling an expert to double-check.
Cocktail hour or a meet-up. Shaking hands. Listening for whispers.
Updating your CRM. Who owes you a favor? Who brought you a good deal? Managing relationships is work.
Learn from those who came before you. The wins AND the wipeouts.
The ultimate Networkers. They see every deal in Silicon Valley because of their brand and connections. They create their own weather.
Uses broad market knowledge and "awareness" of legislative shifts. Whether luck or skill, the access is undeniable.
The guy who always has a "sure thing" stock tip... right before it dumps. He is being used by his network, not leveraging it.
Be honest. How many of these sound familiar?
Trust but verify. Do your own due diligence on every "hot tip".
Learn to say no to friends without burning the bridge.
Filter your inputs. Listen to the best, ignore the rest.
Discover how different personalities and styles connect
Community-powered traders
Cover your blind spots by studying these