Over the past few years, mentoring has become popular in various spheres of life. At the center of this movement are experts who, for a fee, help less experienced people build careers, develop useful skills and avoid common mistakes in any area of expertise.
The advantage of this type of education is that the student can gain knowledge rich in practical experience and specificity. In the field of trading, there is also a demand for this type of service. Thanks to its presence, some managers began to build expert careers and even open schools for investment and trading.
But for novice traders, over time, the question of choosing a teacher began to arise. Everyone comes to this decision in different ways: someone immediately looks for a mentor for himself, and some at first try to engage in self-education. In the latter case, the market takes the payment in the form of losses that the trader receives as a result of erroneous decisions. In this article, we will take a closer look at the issue of mentoring in trading: why successful traders do it and how a beginner can choose a suitable mentor.
Why should a successful trader teach someone
When a beginner starts looking for a mentor, he is faced with advertisements of many traders, who, in turn, demonstrate impressive trading results and amounts with many zeros under control. The question arises: why should they teach someone else and take money for it? In my opinion, the following reasons can be distinguished:
1. New source of income
If a trader takes money for training, then he wants to compensate for the time he could spend on trading. Therefore, the fees for such lessons cannot be low. In addition, in this way, managers can earn on an affiliate program from brokers, bringing their students to them. This allows traders to further monetize their trade. Often, students become investors and increase the manager’s capital.
Nothing is alien to successful traders: there are many people among them who need public recognition. They enjoy the enthusiastic feedback from their students, which goes hand in hand with the above motive. Some managers simply enjoy teaching.
There is a category of people who strive to benefit others. I admit that there are few such professionals, but lively enthusiasm can also be a reason to turn to mentoring as a type of activity.
I will single out individual cases when a person is unable to trade successfully for psychological reasons. Excitement, imbalance and emotional instability are the reasons for their negative trading history. However, they have teaching ability, experience and knowledge. On the other hand, such traders are difficult to distinguish from scammers who are chasing views and the number of followers on social networks.
How to choose the right mentor
Having dealt with the motives that drive traders to engage in teaching, let’s talk about how to choose the right mentor for yourself.
Let’s start by defining the learning objectives: learn the basics or improve trading? In the first case, that is, to gain basic knowledge, it makes no sense to use the services of an experienced trader. There is a sufficient amount of free materials on the web that will help you learn the concepts and categorical apparatus. The knowledge gained can first be “rolled back” on a demo account, then switched to a cent account, and only after that you can determine a trading style suitable for your temperament, having received, albeit negative, first experience.
When choosing a teacher, you should pay attention not only to his results, but also to the type of trading system. If scalping is not psychologically suitable for you, then there is no point in learning from the best scalper trader: there will be no result.
The following factors are important:
1. Trade statistics. The mentor must maintain a public account where his transactions will be visible.
2. Confidential contact. A mentor should be personally pleasant and dismissive. Discussing financial matters requires mutual trust.
3. A mentor should not promise a miracle. No professional can give a 100% guarantee of the effectiveness of a trading system. If you come across such a trader, then you should seriously consider whether it is worth taking a training course with him. The mentor must be able to tell the bitter truth, bringing the student to his senses. This is about honesty.
4. The mentor must allow the initiative to take place. Otherwise, it will be extremely difficult to start trading on your own. Real market practice in a training course should ideally take at least 40% of the study time. Many aspects are better learned through direct trading.
Some of the trader-mentors administer chats in instant messengers, where you can meet students from past issues. It will be useful to monitor the quality of the trader’s analysis within a month, so above I recommended getting basic knowledge from open sources on your own. Otherwise, you risk becoming a victim of your own gullibility.
Cost and terms of training
The price of mentoring will depend on the popularity and professionalism of the trader. Courses less than 150 USD for a group training format are not worth considering. As I wrote above, the manager will strive to compensate for the time spent on the students. In addition, the cost will be influenced by the number of successful students and the profitability of the trade.
Regarding the duration of the course, I note that good preparation requires at least 3 months. Therefore, it is necessary to prepare for the fact that the process will be lengthy. The optimal period is 6 months.
Also, pay attention to the types of training – not all people are suitable for the same format. Training is:
3. Consulting, when the student is interested in individual blocks in the course.
Over time, a novice trader realizes the need to take training from a more experienced asset manager. The demand for these services is shaped by the offer from the mentors.
The basic motives of traders to provide training services are to generate additional income, develop an affiliate network and subjective psychological factors. When choosing a mentor, you should familiarize yourself with the statistics of a public account, make sure that the trading system suits your temperament and do not trust promises of 100% return.
The cost of the course depends on how profitable the trading strategy is and how popular the mentor is. The duration of the course varies from 3 to 6 months. It is advisable to undergo training in a personal format.