- 5 Trading Resolutions to Make in 2017
- How time consuming is Forex trading?
- Trade Like A Business
- Trading the Market Zones for a Profit
- Your Guide to Letting Your Profits Run
- Key Points to Accelerate Your Learning Process
- Discipline - Why You Don’t Have It. And How to Get It
- Transitioning from a Demo to a Fully-fledged Trading Account
- Why Traders Overtrade
- Learn to Trade the News Putting the Odds in Your Favour
- Setting Profit Goals: in Pips or Percentage Gain per Day?
- How to Let Profits Run?
- Get Prepared to Beat Your Previous Trading Achievements
- How to Trade the News Effectively
- Create a Trading Battle Plan
- Solution Focused Trading
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How to Select the Right Trading Mentor
There are many online training courses promising to show new traders the way to make consistent profits from the Forex markets from the comfort of their own home. But most of these courses fail to live up to the hype, with a reported 95% of new traders losing their entire accounts within the first 12 months of their new trading careers.
In this article, we will look at what you should be looking for in a Forex mentor to give yourself the maximum chance of trading success.
The starting point is to find a mentor that is an active and successful trader. The only drawback to this approach is having the ability to identify the truly successful traders from those that simply make their living selling educational products.
If someone is simply selling Forex training courses as their main source of income, those products probably won’t demonstrate a clear understanding of how to make money from trading the markets.
A mentor must be a proven trader
It may seem like an obvious indication of success, but there are very few so-called experts and educators that are actually proven traders. Many will make claims about how they trade their own account or on behalf of investment firms. The problem is, there’s often little or no evidence to back these claims up.
They will also claim profitability and success in the markets. But again these claims are often lacking hard numbers to prove authenticity. So how can the performance and credibility of a trader attempting to sell you a training product be verified?
The best method is via third party verification. This means that a recognised external party has checked an individual’s accounts and determined that their profitability claims are true. An audit of trading results from a chartered accountant is a very good example of this type of verification.
Any external source that proves that a trader is profitable, without the need to trust their word alone, can be considered conclusive verification.
Having outside verification, ideally from multiple sources, will give you confidence in the methods being taught by the mentor in question. Trading with methods that inspire little confidence will be very difficult to adhere to during time of drawdown - something which all retail traders face from time-to-time.
Verification can be used to dismiss the vast amount of self-proclaimed experts that do not actually trade for a living themselves. It’s a simple process that can save you both time and money.
They must provide practical follow up to their course material
Many courses will fail to be of any use to new traders if there is no follow up to the initial training material. What new traders need is an educational course that allows them to test the lessons they have learned in a market environment. This helps with the practical application of the strategies being taught and is ultimately a great way to see the strategies in action through a variety of market cycles.
The best example of a supportive follow up service would be a live trading environment that allows you to watch each trade being taken, while asking and interacting with the trader in question.
Essentially, anything that allows you to follow the trader as they apply the course material in real time will give you a very good foundation for applying the techniques they are teaching.
In order to have the very best chance of making money trading Forex, it is crucial to find a trader that can demonstrate some kind of verification of their past successes. This will give you confidence that the methods being taught are not simply rehashed concepts that simply don’t work.
Once you have found a trader that has a proven track record of success, you need to ensure that the materials being taught can be applied in a market environment and lead to profits. Studying a DVD may not be enough for you to really understand the concepts and apply them in the markets with confidence. It is much better to find traders that are willing to trade in real time with you and show how their strategies work in a trading setting.
If you are searching for a training programme, we recommend the ‘Learn To Trade’ programme by Jarratt Davis, who has been ranked among the world’s top traders between 2008 and 2013 by the Barclay Currency Trading Index and trades professionally through an FCA regulated investment company in London.
He teaches his trading methods in his educational programme, offering you the chance to join him every morning in his live trading room.
In the following interview, Jarratt Davis tells us more about his trading methods and educational programme.