3 Reasons Why You Need Forex Mentoring to Become A Trading Master

I always tell people trading is hard.  And that is the absolute truth. Trading the Forex market can be a very challenging career or part time hobby for those who don’t have the correct tools, guidance, and understanding of the market.  Most people enter Forex trading with no skills, and only a vague plan to “make lots of money.”  This combination is a recipe for financial disaster.

At the same time, Forex trading can also be an amazing career or part time income for those who do succeed.  It offers a method to work from home, earn a noteworthy income and also provides the ability to be your own boss.

So, to succeed in trading you really have to first understand the Forex market and how it works.  I consider this the absolute minimum; the beginning steps in your trading journey.

There are plenty of good introductory books and internet sites that will teach you the beginner level mechanics of the Forex market, so I won’t repeat them here.  Simply google “Forex basics” and you’ll get a lot of information.

Once you understand the Forex market, and how it works, it is important to know how you can trade the market.  Again, since this is beginner level material, I’ll refer you to one of the major Forex brokers out there.  All those brokers offer simulation accounts, where you can practice the mechanics of trading – you can learn to buy and sell in a stress free environment, where no money is won or lost.

Figure 1- An Example of a Forex Trading Platform

After absorbing this basic information, you will have conquered the beginner’s level of Forex: you will understand the basics of Forex, why it exists, how it operates, what the general terminology is, etc.  In addition, you will have practiced the basics of buying and selling Forex currencies in a simulated environment.

But then what?  What is a good next step for an intermediate level Forex trader to take?  I believe at this stage you can greatly benefit from expert instruction and guidance.

Having been around trading for 30 years now, I can safely state there are 3 primary ways that focused Forex Mentoring can help an intermediate trader become a Trading Master.  I detail these below.

A Forex Mentor Assists You In Putting It All Together

Forex trading is more than just buying and selling currencies.  There is a long list of topics an intermediate trader must learn to master:

* How to enter the markets

* How to properly exit the markets

* How to properly position size each trade

* How to determine if your buy and sell rules will actually work in the real market

* How to utilize proper and prudent money management

* What Forex pairs to concentrate on

* How to automate any strategy you create

* How to achieve diversification in trading

* How to account for scheduled and unscheduled news events

* What to do when price shocks occur

* How to properly size your Forex account – small enough to get a good return, but large enough to avoid the dreaded “risk of ruin” resulting from inadequate account funding

Now, all these topics can be learned from experience by actually trading.  That is what I did.  The problem with this approach is that it becomes expensive!  I blew out numerous accounts early in my trading career, since I did not know the correct way to account for the topics above.  My trading journey was long and painful.  But luckily your trading journey does not have to be as painful as mine was!

You can shortcut the learning curve by joining forces with a trading master.  By getting the right Forex mentoring, YOU can actually be taught how to be your own Forex master.  The key is to get the proper Forex Mentoring.

A Forex Mentor Assists You In Determining New Possibilities

Here is an example of one possible route your Forex trading can take.  You can develop and test Forex “algos” – rules that determine when to buy and sell a particular currency.  Here is an example of the performance of a Forex algo for the British Pound / US Dollar pair:

Figure 2- Forex Algo Strategy Buys And Sells

Figure 3- Performance Curve of a Forex Algo Strategy

What is great about this style of trading is that it can be historically tested BEFORE you risk actual money.  And then, as a bonus, it can be automated when you trade it live – no more staring at charts all hours of the day and night!

The problem with developing algos to trade the Forex market is that it is easy for novice traders to build the strategies incorrectly.  To discover the best trading algos, and how to correctly and prudently develop them into real time successful strategies, you require trading with the finest algo traders. A mentor is needed – one who is a proven proficient trader. One who has been trading for years. One who knows how to take full advantage of the Forex market. One that can help you become a Forex trading master.

A Forex Mentor Can Be Your Trading Guide

Let’s say you decide you want to employ algos to trade the Forex market.  How do you determine what is a good algo and what is a bad algo?  What do you do when algos stop working?  How should you trade during news events?

These are all great questions, ones that may not be answered in any book or video.  That is where a mentor is needed.  A good Forex mentor will be by your side, ready to answer your questions and support you during stressful trading times.

That is an important consideration if you look for a mentor – will the mentor help you, or will you be getting support from a barely trained support person – who likely does not even trade? 

Most technical support workers at trading education companies can only answer the most basic questions.  So remember that as you look for a mentor – a true mentor will be there to support you and address all your trading concerns as you trade.

Wrapping Up

Trading mentors are not for everyone.  Beginning traders do not need a mentor – there is so much to learn at the start of a trading career, and most of the information can be obtained free from the internet or from inexpensive books.

But for the intermediate level trader – someone who understands the Forex markets, and who has conquered the basics of actual Forex trading – a mentor can be indispensable.

Having a mentor to help you to name your trading goals and correct you each time you commit a blunder can be priceless.  That is what you can get in a Forex Trading Masterclass.

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