Mentoring in Trading: Why People Do It, and How to Choose a Tutor?
Author : Vadim Kovalenko
Dear Clients and Partners,
Mentoring has become quite popular these years. In the center of this movement we can encounter experts that for some fee help other people make a career, develop skills, and avoid typical mistakes in certain branches of knowledge.
The advantage of this method of education is that the student can get knowledge filled with practical skills. In trading, these services are also popular. With it, some managers started off as experts and even opened schools of trading and investments.
However, beginners are wondering how to choose a mentor. People take different ways of doing it: some find a mentor at once, some start off with self-education. In the latter case, fees are charged by the market in the form of losses that traders experience for mistakes. This article is devoted to the details of mentoring in trading: why experts for it and how a beginner should choose a tutor.
Why should an experienced trader teach someone
When a beginner starts looking for a mentor, they encounter ads of many traders who, in their turn, demonstrate impressive results and sums with many zeros. A question appears: why do they need to teach someone else and take more eyes for this? To my mind, there are several reasons:
1. New source of income
If a trader charges fees for learning, this means they want a compensation for their time and effort they could spend on trading. Hence, such lessons cannot be cheap. Moreover, this way managers can make money on attracting people — their students — to partnership programs of brokers. This is how traders make money on their trading. Most often, students become investors and increase the capital of their manager.
2. Vanity
Human qualities are also their in traders, and many of them crave for social recognition. They enjoy happy feedback from former students. Some managers just enjoy the process of teaching.
3. Enthusiasm
There are categories of people who are eager to be useful for the society. Such experts are few, but enthusiasm can also drive people into mentoring
I will single out special cases when people cannot trade successfully for psychological reasons. Excitement, lack of mental balance, emotional unstability are the reasons for negative trading history. Howevee, they have pedagogical experience, experience, and knowledge. On the other hand, such traders are hard to distinguish from frauds that seek likes and subscribers in social networks.
How to choose a mentor?
Understanding the motives that drive traders into teaching, let us find out how to choose a good mentor.
Firstly, make up your mind about your goals. Do you need to learn the basics or make your trading better? In the first case, when you need the basics, there is no reason for seeking help of an experienced trader. On the Net, there are plenty of free materials that can help you find your way through the main notions and categories. Then you can practice on a demo account, then switch to a cent account, and then decide on your trading style depending on your character. Thus you will get some experience, positive or not.
Choosing a mentor, check for not only their results but also the type of their trading system. If you are psychologically uncomfortable with scalping, there is no reason for learning from a scalper as you will have no result.
Price and length of learning
The price of your learning will depend on the expertize of your trader. I advise you against courses cheaper than 150 USD for group learning. As I wrote above, the manager will try to compensate for the time they spent on the students. Moreover, the price will be influenced by the number of successful students and the profitability of their trading.
As for the length of learning, you will need no less than 3 months. Get ready for the way to be long. Optimum length is 6 months.
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Sincerely,
RoboForex team
