Master traders Tyson Clayton and Chris Pulver are the creators of the groundbreaking Equities on Demand training program. For more information, watch our Equities on Demand video.
Trading the stock markets can be challenging if you don’t have the right tools, education, and guidance in place.
That’s because markets change all the time, and so do the prices of thousands of stocks. So, there are many moving elements you need to keep a track of – price movements, economic developments, trading strategy, etc.
It begs the question: How can one navigate through these challenges and trade successfully in the stock markets?
If you’re new to the markets and want to learn how to trade stocks, or even if you’re a learned trader but stuck in a rut, having a stock trading mentor by your side can be the best answer.
A mentor is someone who can help you through the process of understanding the markets. Mentors can help you narrow your focus, learn market strategies, and build the right trading mindset. And the best ones can teach you how to develop and test strategies for yourself.
Here are our top three reasons why you should have a stock market mentor…
#1: To Help You Understand the Equities Markets and Take You Through Trading Processes
The stock market can seem overwhelming at times. That’s because there are thousands of stocks trading in the markets, and there are too many developments going on throughout the week.
A mentor can help you understand how stock markets work and how you can develop a better approach to trade them.
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…
- How companies go public and how you can invest in their initial public offering (IPO)
- How stock prices move and how you can trade them
- The difference between small cap, mid cap, and large cap stocks
- Various investment avenues in equities markets like stocks, mutual funds, ETFs, etc.
- What are growth stocks, dividend stocks, and speculative stocks
Let’s take stock categorization for example. A mentor can help you understand how penny stocks are different from large cap stocks. He/she can then explain why penny stocks are way riskier than large caps and how you should approach them.
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 stock markets. They can show you how to…
- Buy and sell stocks in the cash or derivatives segment
- Set stop loss and target levels for a trade
- Use various trading tools and software
- Invest in mutual funds, bonds, ETFs, etc.
- Check the margin requirements for Futures and Options (F&O) trading
…and guide you through many other such lessons.
While these may sound simple, it takes time and experience to know them. And that’s where mentors can make it easier for you.
A trading mentor has years of experience in the stock market and knows its nitty-gritties.
Therefore, he can help you learn how to trade with a sense of understanding and confidence.
#2: To Teach You How to Study Stocks and Develop Your Stock Trading Strategy
While stock trading may seem easy, it takes skill, strategy, and discipline to be profitable at it.
A mentor can take you through various technical and fundamental trading approaches.
There are many approaches to stock trading – Day trading, Swing trading, Position trading, Scalping, Trend Following, etc.
Knowing these strategies is easy. But it’s a different thing altogether to practically implement them in the stock markets. There are various technical factors involved and keeping up with all the company and market developments of a stock can be a daunting task.
A trading mentor has years of experience analyzing stocks and options and can show you how you can study a stock from its charts, financials, price movements, and the market interest.
They can also show you how to implement strategies by taking you through the stock trading process of each of the various approaches.
In fact, you can use this information to develop your own trading style.
#3: To Develop Your Trading Mindset and Help You Become a Successful Stock Trader
Mentors have learned how to think more accurately from their past experiences of trial and error. And they are someone whose hindsight can work hugely to your advantage in creating your foresight in the stock market.
The right mentors know that the most important tool for gaining an edge in the stock market world is to master one’s trading mindset. And that’s where they focus the most on. They help you develop the right trading mindset by showing how you can…
Act decisively, and not emotionally, during stock market fluctuations
Diversify and allocate your investments between small, mid, and large cap stocks
Evaluate risks associated with every stock position you buy
Test and follow your stock trading strategies
Have a disciplined stock trading approach
Try to keep your losses small and let your winners run
All of this guidance can eventually help you find a stock-picking 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 stock 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 stock trading career.
If you want to try to become a successful stock 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 stock markets.
For more information on MTI’s stocks and options trading education program, watch our Equities on Demand video.
Disclaimer: MTI is a financial publisher and the indicators, strategies, reports, articles, and all other features of our products are provided for informational and educational purposes only and should not be construed as personalized trading or investment advice. MTI is not registered as an investment adviser. As a financial publisher, MTI is not legally permitted to offer personalized trading or investment advice to our subscribers. For all of its publication services, MTI relies upon the “publishers’ exclusion” from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, MTI does not offer or provide personalized investment advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide (or that is derived from our website) is not, and should not be construed in any manner to be personalized advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as a solicitation by MTI to effect or attempt to effect, any transaction in any security. Investments in the securities markets are speculative and involve substantial risk. The information that we provide or that is derived from our website should not be a substitute for advice from an investment professional. We encourage you to obtain personal advice from your professional investment advisor and to make independent investigations before acting on the information that you obtain from MTI or derive from our website. Only you can determine what level of risk is appropriate for you. Therefore, subscribers will need to depend on their own mastery of the details of trading and investing in order to handle problematic situations that may arise, including the consultation of their own brokers and advisors as they deem appropriate. Our recommendations and analysis are based on SEC filings, current events, interviews, corporate press releases, and what we’ve learned as financial publishers. It may contain errors and you shouldn’t make any investment decision based solely on what you read here.
Readers should be aware that trading stocks and all other financial instruments involve risk. Past performance is no guarantee of future results, and we make no representation that any customer will or is likely to achieve similar results.