How You Can Be Your Own Mentor

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A lot of new traders get involved with this industry every year, however, very few of these traders ever become successful — it’s estimated that only 5% of traders actually make a profit. One of the primary reasons why new traders never reach the level of success that they have been hoping for is because of a lack of experience. it can take at least a few years for a trader to become proficient, but by that time they probably won’t have much capital left, if any at all.

New traders can overcome this problem by hiring a “trading mentor”. Throughout the next few sections we’re going to explain the role of a trading mentor, how you can become your own trading mentor, and we’ll also talk about the “middle ground”.

The Role of a Trading Mentor

Before we get started, let’s just say that a trading mentor will be extremely valuable to your trading career. Any good mentor will be able to follow the standard three-steps of progression:

1. Breaking down a trader’s performance into individual skills.
2. Constructing practice sessions for each of the aforementioned skills.
3. Gradually making the practice sessions more complex and difficult.

You can either hire a professional trader mentor who has a lot of experience, or you can decide to be your own mentor. The former might bring better results, but the latter is an attractive choice for many new traders.

So You Want to Be Your Own Mentor?

You’ll need to possess the skills we discussed in the previous section in order to be your own mentor, but you’ll have to make some adjustments to your daily trading activities:

  •     Practice should be high on your to-do list.
  •     Practice should be structured and focus on specific aspects of your trading.
  •     You will need a way to document your trading practice for later review (i.e. a journal).
  •     The documentation from the previous step will need to be reviewed objectively and feedback will need to be obtained.

As long as you can carry out the above steps objectively, there is no reason why you can’t be your own mentor. Many traders would have difficulty providing feedback on their own trading, but you can make the task easier by looking through your trading history and analysis if progress is being made.

The Middle Ground

The majority of traders won’t see good results from being their own mentor, but they also find it difficult to either source a professional mentor or to pay for one. This leaves us with a middle ground.

Why not start your own “support group” comprised of traders who are at the same level as you, and are willing to discuss trades and help each other? This is probably the best option for the majority of beginner and intermediate traders.

A quick search of “trader’s expo”, “binary options conference”, or just about any other related term will bring up many results. You can attend these expos and conferences to meet people who trade just like you.

Closing Notes

If this has been quite a confusing read for you, then you might not need a trading mentor just yet. Intermediate traders can gain the most benefit from having a mentor, as they have built a strong foundation yet still have a lot of room for improvement.

Beginner traders will benefit most from keeping a trading journal, reviewing their trades and looking for any mistakes that they might have made, and continuing to build a strong foundation.