COACHING
FX
How to select the right
trading mentor
Tere 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.
Te starting point is to find a mentor that is an active and successful trader. Te 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.
FX TRADER MAGAZINE January - March 2014 25
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