Mentoring in Forex
Like everything else in life, venturing into a new trade requires learning different skills.
It’s not always easy to learn new investment skills. Many experienced stock traders who have been actively involved in NASDAQ for years are now moving over to Forex trading which seems to be offering far profitable trades with far less effort. They often need to learn new techniques What they soon realize is that Forex Trading is not as easy as it seems at first. There really is more to know about currency trading than one thinks at first. That is why it is highly recommended that all traders, even those that have been trading other financial instruments for years, should educate themselves in Forex before opening a Forex account.
Newbie traders should make every effort to learn all about Forex markets by taking a good educational tutorial. Most brokers offer this type of instruction to all their account holders and this is an excellent way to learn the basics. If you want to move ahead and learn more advanced techniques, you might want to take a course provided by an independent Forex service that is not linked to any particular broker such as FXAcademy. Fundamentals
The fundamentals of Forex trading don’t differ much from other conventional trading and the concepts used are similar. It is important to know all the ins and outs of trading so you can place profitable trades. Knowing the history of currency trading is also advisable as it gives you a good background to how currencies have evolved.
Start your trading experience with a demo account. This account gives you the opportunity to practice your trades for a specific period of time with virtual money provided by your broker. By using a demo account you can learn about Forex trading without putting any money at risk. Most brokers offer a demo account so with the vast choice of brokers available these days, make sure you choose one that is proud to offer it.
Here is where a good mentor can be of help. Mentors can help you select the right broker and the account that is best suited to you. An objective mentor can sift through the plethora of brokers and compare their features before advising you which broker to select. When you feel confident that you know enough to discuss Forex intelligently, your mentor can now help you move to the next step in trading. One of the main mistakes made by most traders is jumping into the market too quickly, before knowing enough to make the right decisions. Knowing when to enter and exit a trade can make the difference between profit and loss.
One way to hone your skills in Forex trading is to understand both technical and fundamental analysis. A good mentor will be able to show you how to read charts and interpret graphs that indicate price movements. Many successful Forex traders use these tools primarily in order to place profitable trades.
Interpreting charts and graphs is not an easy undertaking and a personal tutor can be very helpful at this point. He will also teach you how to develop your own trading system which you should follow throughout your trading experience. Once you have set a strategic plan in action, you must have the discipline to follow it no matter what happens in the market. Despite seeing success at the start, most traders incur more losses than wins. Statistics show that new traders lose their money 95% of the time. If you manage to have some trades that move in the direction you chose, take your profit, no matter how small, and reinvest it in a new trade. Many small profits are better than no profits at all and certainly preferable to losses.
Working together with your mentor, you should be able to come out with some successful Forex trades.
Alex P.
