Mentorship is the process of getting advice and guidance from someone who has experience in a certain field. For example, a young mechanic can be mentored by an experienced person who has been in the business for many years. Similarly, in hedge funds and investments, a young professional can be mentored by someone who has been in the business for many years. This article will look at forex mentorship, why it is important, and how you can do it well.
What is forex mentorship?
Forex mentorship is a simple process in which a beginner in the industry is guided by someone who has been in the industry for a while. The goal of this mentorship is to help a potential trader identify trading opportunities and fix some of the common mistakes that people make in the market. Also, the goal is to complement what a trader has learned in online courses and other materials.
Benefits of having a forex mentor
There are several advantages of having a good mentor in the forex industry. Some of the best ones are:
- Introduction to forex. A good mentor will talk to you about the industry and show you the opportunities and risks involved.
- Market conditions. The mentor will explain to you the different types of market conditions and how to trade in them.
- Brokers to use. A basic benefit is that the mentor will recommend some of the best brokers to use in the industry. These will be brokers with low fees and a good reputation.
- Dealing with losses. A mentor will give you more information on how to deal with big losses and how to avoid making substantial losses.
- Best practices. A mentor will give you details on the best practices to use in the forex industry.
As a forex trader who has been in the industry for almost a decade, I have seen the benefits of having a good mentor. While there are many reasons why I have succeeded in the business, the most important is that I had an excellent mentor. He was an excellent trader who started in a trading pit in London and later established a trading floor in my city. Through his guidance, I was able to create a good and profitable trading strategy within a few months.
Qualities of a good mentor
Not every successful forex trader can be a good mentor. I know many excellent traders who make horrible educators and mentors. As you begin your search to find a good mentor, there are several qualities you need to look at. Some of them are:
- Experienced. A good mentor should have many years of provable experience in the forex trading industry.
- Willing to supervise. A good mentor in forex should be willing to offer you guidance either online or in person.
- Honest and candid. An excellent mentor should be honest and candid. They should be willing to tell you the hard truth. For example, they must be ready to tell someone that they are not good traders instead of offering false hope.
- Flexible. A good mentor should be flexible, meaning that they must be willing to find time to help you.
- Motivational. A good mentor should offer you motivation to go on as a forex trader.
How to get a good forex mentor
You can use several strategies to get a good forex mentor. The easiest one is to approach someone that you know well who has succeeded in the industry. This person could be your family member or friend. If you know such a person, you should schedule a meeting and talk to him about your goal of becoming a trader. You should let them know where you are, what you want to achieve, and why you want them to mentor you.
If the person agrees, you should come up with a plan on how you want the mentorship to go on. This should include the medium you will use to communicate, the time of the day you will be meeting, and whether there is a need for physical meetups. A mentor who is a family or friend is ideal since you can always hang out with them as they trade and learn practical skills.
The other option is where you approach a well-known trader in your area. The goal is to have a conversation with them and see if they are open to the idea of being your trading mentor. While most of these busy professionals will refuse, there are some who will agree. I know of a very successful hedge fund manager who agreed to mentor a young trader.
Another way to find a good forex mentor is to volunteer or intern at a local trading floor for free. The goal is to see how the floor’s traders do it in real-time and then embrace some of these strategies. Indeed, most financial services and hedge fund companies were started this way. For example, Blackstone was started by Stephen Schwarzman, who worked for Donaldson, Lufkin, and Jenrette. Similarly, Moelis & Co was started by Ken Moelis, who worked for UBS. Similarly, all hedge funds now known as Tiger Club were started by managers who used to work for Julian Robertson.
The final option is to find an online mentor. These are professional traders and educators who offer mentorship-as-a-service. You can find some of these people by just using Google. However, you need to be extremely careful to ensure that you get someone who is a really good trader and one who is not expensive.
Forex mentorship is a good way to complement your trading experience. It involves having someone who has been in the industry for a long time and can coach or guide you in the journey. Having such a person will help you avoid common mistakes and craft a good strategy that has worked for them over the years.