Table of Contents
The Purpose of Mentorship
Mentorship is a concept that has existed for years, and was introduced as a way to nurture and grow one’s potential. A mentor also seeks to provide some level of guidance to their mentee, based on their knowledge and experience. The same can be said in the case of a trading mentor, which is someone who can help a novice trader get a better understanding of the markets through explaining the process and provide tip and tricks on how to possibly make a success of it. Although, it is important to note that even with the help of a mentor, there is no guarantee of succeeding at trading because of how dynamic it is and the impact of global conditions on the strength of the currencies of interest. Mentors can be likened to teachers, to a certain extent, as they advise on strategies and methods, whilst also encouraging a sense of independent and critical thinking. In most cases, a mentor will encourage you to learn about US forex trading because of the key role that the USD plays on the financial markets. It is the basis of most global trade and forms part of the major currency pairs and because of this, a mentor will most likely advise that you keep an eye on how the dollar is performing because more often than not, it will have an impact on your investment.
How to find a Trading Mentor
The benefits of finding a trading mentor are many, but getting started and actually finding one is a step that many people can find intimidating. Naturally, one must be cautious when looking for a trading mentor, as there are many opportunists that are looking to take advantage of novice traders in light of the growing interest in forex trading. To avoid being victimised, it is important to establish whether your prospective mentor has a successful trading track record and credibility, similar personality and goals as you so that they can advise on best practices and what has worked for them, as well as the amount of time they are able and willing to dedicate to you. These are just some of the considerations to be made in your pursuit.
When it comes to working with a trading mentor, transparency remains a crucial aspect. Ideally, a mentor should be honest about trading in general, as well as their own trading experience. In this way, when they disclose some of their own failures, it can be a great way for you to note what to be cautious of and what to avoid. Although market conditions do differ, this will help you remain alert. It is widely believed that good mentors will share extensively about their failures, rather than their successes, so as to avoid creating an unrealistic picture of the forex market. According to reports, the majority of beginner traders give up after their first few losses, as an idealistic view of forex trading may have been created for them beforehand. A trading mentor, on the other hand, will guide you through the process and lead you through your first few losses so that you eventually start making gains and capitalising on the opportunities that exist on the world’s largest financial market.
