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Forex trading is amazing. And we at Market Traders Institute are a huge fan of this market, offering our proprietary Forex trading tools and training.
It’s the largest financial market in the world and offers added benefits such as ease of access, time availability, and high liquidity as compared to most of the other market segments.
But while forex trading can be exciting, adventurous, and potentially financially rewarding, it can also prove disastrous for those who are unprepared for its rhythms and movements. There is an abundance of information going throughout the week and trading can get challenging if you don’t have the right tools, education, and guidance in place.
If you’re new to this market and want to learn how to trade currency pairs, or even if you’re a learned trader but stuck in a rut, having a Forex trading mentor by your side can help give you a competitive edge in the market.
Here are our top three reasons why you should have a trading mentor…
#1: To Help You Understand the Forex Markets and Guide You Through Trading Methods
The Forex market can seem overwhelming at times. That’s because there is too much volatility in this market, and it can be overwhelming to keep track of all the news and developments going on throughout the week.
A mentor can help you understand how this market works and how you can develop a better approach to trade various currency pairs.
This can mean understanding some of the basic yet fundamental issues, which can prove to be your foundational learning blocks. You’ll learn about topics such as…
- Technical analysis for the Forex markets
- How Forex prices move and how you can trade them
- Powerful Fibonacci strategies and how to deploy them
- ABCD and Sub ABCD swings and using them as entry and exit points while trading
- How to use trendlines and counter trendlines to track the Forex market direction
- Bullish and bearish candlestick formations
- King’s Crown and other reversal patterns in charts
Let’s take candlestick formations for example. Candlesticks are the sign language of Forex markets. And a mentor can provide you insights to trading the powerful formations that candlesticks make at reversal points. He/she can then show you the top five bullish and bearish candlestick formations which you can use as an indication to enter or exit any currency pair.
Apart from the above, mentors can make your job a lot easier by taking you through various processes of how things are done in the Forex markets. They can show you how to…
- Scan and analyze all the major currency pairs
- Buy and sell various currency pairs
- Calculate potential PIPS on any trade
- Set and manage your stops and limit levels for a trade
- Use various trading tools and Forex trading software
…and guide you through many other such lessons.
It takes time and experience to understand these concepts if you are entering forex for the first time. And that’s where mentors can make the job a lot easier for you.
A mentor has years of experience trading the forex markets and knows its nitty-gritties.
Therefore, he/she can help you learn how to trade them with a sense of understanding and confidence.
#2: To Teach You How to Study Currency Pairs and Develop Your Forex Trading Strategy
Forex trading requires skill, strategy, and discipline to be profitable at it.
A mentor can show you how to study currency pairs and take you through various trading approaches.
Moreover, he/she can help you understand the different components of an effective forex trading strategy such as…
- Selecting the market
- Position sizing
- Entry and exit rules for a long or a short position in a currency pair
- Selecting the right execution technologies for your strategy
- Setting your risk management parameters
Knowing these strategies is easy. But it’s a different thing altogether to practically implement them in the forex markets. There are various technical as well as fundamental factors involved and keeping up with all the market developments affecting a currency pair can be a daunting task.
A trading mentor has years of experience analyzing these trends and can show you how you can study a currency pair from its charts, price movements, and the market interest.
They can also show you how to implement strategies by taking you through the trading processes of each of the various approaches.
In fact, you can use this experience to develop your own trading strategy as per your preferences.
#3: To Develop Your Trading Mindset and Help You Along the Road to Becoming a Successful Forex Trader
Prices in the Forex markets fluctuate a great deal on account of people’s tendency to speculate. And you should be prepared to see downfalls in your portfolio every now and then. Just as the rises, downfalls are a part of this game and you shouldn’t react to them by abandoning your strategy.
A trading mentor can show you how you can approach this market with a winning mindset and try to use the fluctuations to your advantage.
That’s because mentors have learned how to think more objectively from their past experiences of trial and error. And they are someone whose experience can work hugely to your advantage in the forex market.
For example, a mentor can improve your equity management in forex by teaching you the important habit of only risking 1 pip to try to gain 3 pips every trade.
The right mentors will help you develop the right trading mindset by showing how you can…
- Act decisively, and not emotionally, during huge market fluctuations
- Diversify your trades between various currency pairs
- Evaluate risks associated with every currency pair you buy
- Test and follow your forex trading strategies
- Have a disciplined forex trading approach
- Try to keep your losses small and let your winners run
All of this guidance can eventually help you find a forex strategy that can be simple, effective, but most of all, potentially profitable.
By now, you probably see that it can be extremely rewarding to have a trading mentor by your side. It can help you understand the forex market and its various processes. It can help you develop your market strategy and a winning trading mindset. And it can help you lay your foundational bricks to a potentially solid and successful forex trading career.
If you want to try to become a successful forex trader, let our analysts here at Market Traders Institute be a mentor to you.
Our experts and their trading rooms are a classic example of how mentorship and the right education could help anyone gain a trading edge in the forex markets.
For more information on MTI’s Forex trading education program, you can check out the FX Chief’s Fibs and Formation Trading Room.
Or you can simply register for one of MTI’s free weekly webinars, where our experts will teach you live-market forex strategies that have stood the test of time.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for everyone. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before getting involved in foreign exchange you should carefully consider your personal venture objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial deposit and therefore you should not place funds that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. The information contained in this web page does not constitute financial advice or a solicitation to buy or sell any Forex contract or securities of any type. MTI will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information.