You’ve heard this advice before. In all aspects of life the most successful people have had some kind of role model to show them how it’s done. I’ve had a mentor too, and I wouldn’t be here today without him. Here are some of the best reasons why having a trading mentor is a good idea and how it helped me grow to my full potential.
Making profitable trades is not about immediate gains or immediate trades. It’s all about the strategy and process, which is why trading mentors can be so valuable. They have had the experience and the ups and downs you have yet to experience. They have most likely been in your position before and odds are they’ve blown a few accounts and understand how to avoid it. The difference is what they decided to do once that account was blown. This little tidbit and many more are why experience has and will always be respected.
Save Yourself Time
Learning from their experience can save you a lot of time. A mentor may have spent years learning trading and the different phases of the market. He can share what he learned and cut your learning curve in half. Its always nice to have someone to ask for unbiased advice.
There are some real dangers out there in trading. You hear trading horror stories all the time. Putting all your eggs in one basket has doomed too many traders before. With help from an experienced trader you can maximize your portfolio diversity and profits. First thing I learned when I got a mentor is to never hold through earnings. Too many times has a stock trade higher or release a strong earnings report only to gap down 10%? This and other valuable advice can save you thousands of dollars that will keep you from making that one fatal mistake.
Trading is hard and could be lonely. Seeing someone who has gone through it and come out of the other side shows you it’s possible. Talk to them, spend time with them, and ask them questions. Then you’ll realize that the potential is real and not a distant dream. Feed off of their passion and internalize it as your own. This way, when the going gets tough you have someone to turn to and know they also went through the same pain.