Have you just started trading or are thinking about buying your first stocks? You might want to consider using a trading mentor to help you demystify terms and build your trading confidence.
Read on to uncover what a trading mentor does and if they are worth it.
What Is a Trading Mentor?
You will notice that one of the most popular and effective ways to acquire new knowledge and skills is to get help from another individual. Whether it is at university and listening to our professor or enlisting to a woodwork apprenticeship, learning from the company boss. Wisdom from others remains the best way to learn – and the same can be said about learning to trade.
We can become better at trading by using a trading mentor. These are experienced and successful traders who can teach you the basics and fundamentals of trading. Trading mentors usually work as freelance consultants for traders of all abilities. Their job is under threat somewhat by well-written online guides for Forex trading, crypto trading, stocks and all the other ways to make money in the market. But the very best mentors offer a personal learning experience that you won’t typically find online.
The Benefits of Using a Trading Mentor
The benefits of using a trading mentor will differ slightly, depending on your own experience. What they provide to newbie traders might be entirely different to the value that an intermediate trader gets from a mentor.
Nevertheless, here are the common benefits of using a trading mentor on a weekly basis:
· Confusing terms explained
· Processes explained
· Trading strategies explained and applied
· Increased confidence and peace of mind
· The best sources revealed
· Insider tips and personal experiences
· Self-evaluation techniques
Who Should Use a Trading Mentor?
A one-to-one trading mentor is most beneficial when you first get into trading. When you initially decide that you want to trade and need to know how it all works, a trading mentor will be able to explain confusing terms and how things work.
However, trading mentors can be used at any stage of your trading development. And some mentors exclusively work with intermediate and experienced traders because they provide value at a higher level. The bottom line is if you have traded for one day or ten years, you should consider using a trading mentor.
What to Look for in a Trading Mentor
The truth is that many trading mentors are no longer trading. They have exited the trading life and now make their money by selling average manuals and online courses, teaching you how to trade well. The content of their books and resources may be useful, but using a mentor that is no longer trading is a red flag. You should opt for someone who is still actively trading to get the best insider advice.
You should also look for a trader who is dedicated to the type of asset you want to trade. If your heart lies in Forex trading, look for a mentor who also devotes most of their time to Forex.
And the biggest red flag of all – do not use mentors who *guarantee* profits. Your capital is always at risk, and they are lying to you from the get-go.