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Ask These Questions to Choose a Good Forex Mentor

10:21 AM Mar 27, 2020
12072
For beginners

Trading foreign exchange currencies is available for everyone now, so every day, newbie traders join the market to get rich. So who should you contact to prevent all these mistakes that can ruin the whole impression of trading? Right, it's your FX trading coach! A Forex mentor is a person that can decrease trading risks by sharing his invaluable experience, and even market players who trade for years sometimes ask for help from these ninjas of the world of currencies.

A competent teacher can determine your future in trading. You should be serious about choosing a mentor. Earlier we discussed the qualities of a good tutor. It’s time to find out how to determine the level of a mentor in front of you and whether he or she will suit you personally.

What Is Your Trading Experience?

Most of the skills and knowledge the trader gains through experience and it takes a lot of time. The first thing you should ask is how much time the mentor spent on Forex. Remember, however, that the more experienced the mentor, the more money he can request for the services. Still, it is better to fork out once than to get stuck with an inexperienced trader and find that he is not able to give you the required knowledge.

How Much Can I Earn on Forex?

This question will help you weed out real mentors from cheaters who just want to make money on you. If the teacher promises you piles of profit then you should immediately switch to another option.

What Is Your Trading Plan?

Most mentors teach the same strategy they use themselves. They’ve already mastered it and know it like the back of their hand. Of course, all the secrets will not be revealed to you for free but the mentor should tell you about the basic indicators:

  • The main methods of analysis
  • Enter and exit terms for a trade
  • Which indicators he uses, etc.

You must make sure that the mentor has a clear plan that he follows so that he can teach you to do the same.

What Is Your Risk Management System?

Again, it is unlikely that the mentor will tell you all the details, but risk management is the most crucial factor of successful trades, especially for inexperienced traders. Nevertheless, there are basic requirements for a competent system which you can safely ask about in advance:

  • What should be the percentage of risk for each trade? - Competent traders do not risk more than 3% of their capital at a time.
  • What is the risk percentage for all open positions? - It is optimal not to risk more than 6% of the total capital for all open transactions.
  • What is your risk-to-reward ratio? - The perfect ratio would be 1 to 3 or at least 1 to 2. Make sure the mentor actually uses this rule.
  • How many open trades should I keep at a time? - Experienced traders are free to monitor up to 10 transactions. A beginner should be advised not to open more than 3 trades simultaneously.

Which Trading Style Should I Choose?

A good mentor should be well versed in all the nuances of trading styles and use a personal approach to each of his students. A teacher who simply wants to earn money will suggest you the style that he likes the most. A competent mentor will ask you a number of leading questions:

  1. How much time are you willing to devote to trading?
  2. What level of activity and risk do you prefer?
  3. How much are you willing to invest?

The answers will help you evaluate which trading style is right for you. It is important that the mentor teaches you the style that suits you.

What Type of Analysis to Use?

Each trader prefers his own approach. Most traders use a combination of technical and fundamental analysis. Some successfully trade using only one of them. In any case, a good mentor should be able to explain the advantages of each of the methods and teach you how to use them.

Do You Combine Forex With Other Markets?

Advanced traders usually trade various markets, such as bonds, commodities, crypto, etc. Concentrating on all these assets takes work, but it can diversify your risks. You should remember that all of the markets are interdependent. For example, now, the discount rate affects the crypto price, but 3-4 years ago there was no correlation between cryptocurrencies and the discount rate or stock market. Ask your Forex trading mentor if he trades other markets and how you can benefit from it.

When Is the Best Time to Trade?

A tricky question. It will help you determine the level of the mentor. A good trader knows that it is most favorable to trade in the European and American sessions since liquidity at this time is the highest. If the mentor offers to trade at any time convenient for you this may mean that the level of this teacher may be insufficient.

What Is Your Profit?

You won’t be given exact numbers. In addition, it depends on the size of your investment. You can find out about the return on transactions in percent, taking into account profitable and losing positions. It is also worth knowing how many trades the mentor opens on average per day and per week. There are times when high profits are achieved precisely by the number of transactions and not by their quality. At the same time, if you don’t have time to maintain the same number of positions then the percentage of your profit will be lower. Evaluate all factors.

How to Manage My Emotions?

First of all, the mentor must understand the importance of working on yourself. The teacher must explain how you can reduce the stress from trading, in what mood you should and should not start trading, and most importantly, how to deal with the flood of emotions that awaits you. The mentor should evaluate your emotionality and give practical advice on this issue.

How Do You Trade on the News?

The answer will help you assess the level of risk that the mentor is ready to accept. Many traders prefer to avoid the market during major news releases such as Nonfarm Payrolls. And this might be an extremely wise decision, especially for a novice trader. Other mentors will offer you to trade on the news noting that they use special tactics. Some trade exclusively price action after the news is released.

Decide for yourself how much you want to earn and how much you want to risk. This way, you can decide which approach and which mentor suits you best.

On What Types of Market Do You Trade?

Almost all traders are familiar with trend trading but not everyone knows how to trade the flat market. Remember that the market doesn’t always have a particular direction. If you don’t want to sit out periods when the market is in flat then choose a mentor who can trade on a sideways market.

One More Thing

It is important that you are comfortable with your mentor. Try to find out what kind of person he is, how easy it is to communicate with him. Do not rush to the first mentor that comes across just because someone liked him or he has good reviews on the forum. It may just not be enough for you. Remember that there are dozens and even hundreds of mentors out there. You will definitely find one that meets all your requirements. Good luck in your quest.

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trading mindset beginners novice traders trading strategy losses forex mistakes trading habits trading plan forex trading women in Forex female traders risk management broker profit trading instruments pairs price advantages of forex leverage FXCL investments copy trading advantages of Forex social trading professional traders trading psychology demo trading buy/sell bid/ask spread Metatrader 4 market analysis technical analysis fundamental analysis trade trading platform Forex trading novice trading dealing with losses charts timeframe indicators MetaTrader 4 trading routine support level resistance level trend low-hanging fruit stop loss loss trading history long-term goals open trade close trade daily charts swing trading intraday trading scalping trading setup Forex traders bullish bearish resistance support MA 200 trend trading professional trading EMA EA daily chart weekly chart Forex news highs lows account type cent trading Mini Micro Cent Partnership commission fees trading terms Stop Loss news trading economical calendar major news release currency pair currency rate national currency trading journal trades profit/loss emotions news release positions size Expert Advisors platform trading robot cryptocurrency volatility day trading position size lot account types cent accounts Mini account ECN Copytrade ECN accounts swap-free minimum deposit order execution liquidity providers demo accounts real account low-risk trading EUR/USD economic calendar majors cross-currencies exotic currencies base currency quote currency quotes bid ask Brexit United Kingdom European Union GBP Euro GDP WTO price levels moving average 4-hour chart 1-hour chart bulls bears false breakout cross-currency USD price action pin bar trading inside bar trading hands off breakeven stop loss 50% stop loss pin bar high-frequency trading position trading swings breakout strategy trading style Entry order Take Profit hammer shooting star inside bar pinocchio bar head and shoulders harami risk to reward ratio trading calculator trader’s age emotion control stop-hunting false signal trading session New York session Asian session non-farm payrolls fed rates decision central banks mentor teacher Forex education Forex books candlesticks bonuses tradable bonus no deposit bonus deposit bonus cashback pending orders counter-trend trading risk-to-reward ratio 1-2% rule uptrend downtrend news releases slippage emotional trading stop orders limits orders trailing Stop correlation Correlation Matrix EURUSD EURJPY RSI Overbought/Oversold indicator doji morning start candlestick pattern liquidity London session gap requote US dollar greed excessive trading Expert Advisor trading instrument Twitter Trump euro Canadian dollar Japanese yen Mexican peso currency pairs Fed China economic news currency wars USA interest rates trade agreement H1 H4 D1 sell trade buy trade price level trading system COVID-19 coronavirus lockdown checklist Default mode network Nonfarm Payrolls intraday traders lot size Stop Out margin breakeven pip point entry price chart candles weekly candle daily candle engulfing candle Doji W1 fears money management trading signals Charles Dow Dow theory primary trend Relative Strength Index signals market noise trading volume oversold/overbought corrections candle M30 GBPUSD GBPJPY pending order fundamentals Interbank order Stop order Limit order Standard account Interbank account liquidity provider M5 chart gold XAUUSD Chinese yuan flat US Dollar Fed Interest Rates inflation level XPTUSD platinum XAGUSD silver USDCNY Chinese Yuan instruments swap trading hours Buy Stop Sell Stop Average True Range ATR range sideways range price level trading scripts Excel tables entry point equity balance applications highs and lows RSI Fibonacci terminal server proxy OS Windows XP self-trading Forex advantages gap trading Fibonacci levels USDJPY Buy Limit Cherry Blossom market cycle mark-up mark-down consolidation distribution long positions short positions double bottom triple bottom double top triple top pattern signal presidential cycle Elliott wave Kondratiev wave Forex terminology quote standard lot mini-lot micro-lot cross pairs exotic pairs counter-currency terminology Margin Call long position short position buy sell candlestick chart bar chart line chart range market channel high low ADX OHLC patterns profit level martingale aggressive EAs VPS demo account EA tester trading signal chasing the market clicking the button oil trading lot EUR cent account Forex mentor novice trader emotions control fear psychological level round numbers Key Levels indicator MetaQuotes iOS Android mobile trading mobile terminal VPS server financial portals day trader position closing short timeframe fast trading news site news portal FXStreet Investing.com Forex Factory ForexLive DailyFX CPI PPI economic indicators Non-Farm Payrolls monetary policy FOMC retail sales inflation rates program installation intuition apps ECN brokers market makers financial 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morning star evening star figures diamond divergent triangle symmetrical triangle reversal signal financial intelligence financial education long-term investing triangle ascending triangle descending triangle risk control stocks Forex mutual fund EUR/AUD AUD Australian Dollar Australia ECB RBA demo live live account spike bearish spike bullish spike breathing techniques meditation unusual trading tips useful habits nutrition intermittent fasting Three indians pamm mam expert advisors start-up capital business Forex business oversold overbought reverse signals 15-minute chart full-time trading discipline drawdown inflation devaluation IDR LAK export Russia regulations regulators Central Bank quantitative easing quantitative tightening Donald Trump Joe Biden coins indexes DXY ICO Mrs. Watanabe beginner trader carry trading young traders women traders productivity self-discipline rectangle sideways channel trend figure Alexander Elder John Murphy Jack Schwager limit order leaving Forex useful tips motivation on Forex expanding triangle 5 candlesticks signal confirmation loss control currencies Germany market execution instant execution taxes laws remote trading withdrawals time management British pound BoE unemployment rate interest rate breakout Sydney session Tokyo session disposition effect continuation pattern golden rule enter trade high volatility risk trading trading discipline trading strategies Forex risks trading risks systemic risks technical risks force majeure criminal risks self-education self-study professional education Forex forecasts partnership program Forex bonuses Forex contests self-employed trader bars harami cross engulfing belt hold sandwich piercing line dark cloud cover marubozu three black crows upside gap two crows multitasking wedge figure trading sessions major trend million financial literacy budget goal setting Forex resources Myfxbook useful tools account analysis account monitoring trading analysis economic sentiment consumer price losing streak perfectionism consistent profits starting capital initial investment market psychology japanese candlesticks PAMM trust management money manager holidays market sentiment CHF CAD Great Britain pound Swiss Frank reserve currency averaging morning routine initial capital potential profit reverse pattern rounded bottom rounded top saucer inverse saucer IB Program IB Commission Sharing reversal patterns deposits payment methods payment systems local transactions trader’s block market balance