Well, they introduce new skills, ideas, and strategies, custom fit to the individual training style. They hold the student accountable, to develop the discipline they need to succeed in the Forex market. To help each student build the critical habits of planning and journaling each trade. They can steer the investor away from making common, sometimes very costly mistakes. They can help the student recognize the and maintain the right frame of mind the trader needs to find consistent success. They provide ongoing support in the form of mastermind groups, online resources and more. Overall shortening each client's road to success. Let's take a deeper look.
A mentor is an excellent source for new skills, proven strategies, and ideas. Having worked with perhaps hundreds of other investors one-on-one, your mentor will have already seen most anything. Being able to draw effective ideas and strategies from the experiences of other students makes them a valuable asset to your success.
Many traders spend countless hours on their own, searching for the holy grail of trading strategies, looking for that one strategy that's going to work all the time. Because the focus is on finding the perfect strategy, they easily pass over many very effective and profitable strategies without testing them properly, many good trading strategies never get a chance to prove their effectiveness.
A good mentor not only introduces his students to proven strategies, but also teaches them to recognize patterns in the market. They learn to wrap rules around those patterns, and some very effective ways to test the plan for profitability. How would you like to have someone with that kind of knowledge and experience base, fully invested in your success?
Self-discipline is very important if you are going to develop the consistent success you want, long term in your trading. I have seen several accounts crash, after weeks and months of positive results, because over-confidence sets in, and they stop following the rules. A good mentor will stand in the background, ready to hold his pupil accountable to follow the plan, and develop the discipline success requires.
If you fail to plan, then you mine as well just plan to fail. Nowhere is this adage more true than in the Forex market. The lack of proper planning can be found at the root of almost any failure, or blown up account. There are some very effective systems and tools used by mentors to help individuals create powerful trading plans. Every trader differs in the way they view and interpret the market. That means that a custom plan is critical, for each individual trader's success.
Many traders believe that keeping a trading journal is important, however they don't know exactly what to keep track of, and what to do with the information they collect. A good mentor will not only have you keep a detailed journal, he'll make sure you know what to track, and how to analyze it, making it a powerful tool that you and your mentor can use to perfect your strategies.
Once you've developed your trading plan, the next step is to trade your plan on a demo account, making sure that you follow your plan to the letter is key, for every trade you make, win or lose, you must journal the results. With that information, you and your mentor will search for weaknesses in your plan, recognize potential problems in your mindset, and notice changes in the market conditions. You will then be able to effectively tweak your plan and become a more profitable trader overall.
For example, a student of mine sent me her trading journal for a two week period, she had 36 trades recorded, 24 wins and 12 losses, however, she only had a net gain of 2 pips. Studying her journal we recognized that when she would have a couple losses, she would always have a long string of consecutive losses. We also found that her average loss hit her stop loss of about 15 pips, but her average wins were only about 7-8 pips.
With careful analysis, we concluded to add a rule to her trading plan stating that if she had 2 losses in a row, she could not trade anymore until she had a good nights sleep. We also focused on holding on to her winning trades longer, to correct her win-loss ratio. She followed the rules, and the next report came back much better, 28 trades with a net gain of 131 pips.
How would you like have a detailed list of all the mistakes, problems, and pitfalls people experience while learning to invest successfully in the Forex market? Learning things the hard way does seem to be a way of life for many people, but if you are teachable, a mentor can save you from a lot of pain and frustration.
Most professional traders and trainers agree that a healthy mindset is more than half of what makes a consistently successful currency trader. Being in the proper state of mind when your trading is critical to success. Understanding the balance between greed and fear and the effects that emotions can play in your trading is invaluable. Many traders struggle to find this balance and the harmony professional traders employ to produce profits. A good mentor can help you realize what it is like to trade in the zone, and stay in the zone.
Navigating the Forex market and all it has to offer can be very tricky, hitting dead ends can be very frustrating. It makes perfect sense to hire a copilot, that’s been there, not only for himself, but has helped many others through as well.
About the Author
Jared Passey, and his small team of Forex mentors at LotsofPips.com, have helped over a thousand investors one on one, to get a winning grip on the Forex market, and they are willing to work with anyone that is dedicated to mastering this market, and reap the awesome rewards it has to offer.