6 Trading Mistakes that Will Cost You Money and How to Avoid Them

Last Updated July 23rd 2021
14 Min Read

Becoming the next forex trading wizard could be a long and lonely journey. Considering the innovative nature of forex trading, it is not an easy task to find a lot of people interested by the same currency market manoeuvres buzzing in your mind all-day-long.

Unless you have a good forex trading experience working on a trading desk for a bank, you are probably strongly lacking the first-hand interaction with other experienced forex traders.

Of course, you look up to many forex trading gurus, reading the hot tips for success and sustainable profit they share on social media, e-books, and practically anything else that is well-advertised as the best formula for an “overnight success”.

However, nothing can be compared to the personal communication with a forex mentor, who can provide you with helpful and valuable foreign currency trading tips and recommendations, evaluate and help you improve your forex trading strategies, review the mistakes you make and provide you with an adequate feedback, advise you on how to broaden your risk-tolerance, and overall guide your way to a forex trading career.

Who is a forex mentor?

who is a forex mentor

Anyone could be your forex mentor. A friend, a member of your family, your colleague, a professor at your university, a stranger you met online at a forex trading forum, a qualified professional, who offer their service through an online platform for forex mentoring, or someone, who provided you with forex trading education course.

It does not matter who you will choose. What matters is to be able to choose a person with good experience in forex trading and probably more importantly mentorship.

The perfect pairing of mentoring and trading qualities is the best combination that will help you learn forex trading efficiently. An active forex trader has an up-to-date knowledge and perspective of the forex market and can be a helpful mentor.

A forex trading mentor with a rich portfolio can help you a lot of experience and first-hand knowledge of the market.

A forex trading mentor must approach you with patience and tolerance, they have to be able to look at the market through your eyes and not push their perspective on you.

And a forex trading mentor should know where the most dangerous psychological traps are set and help you avoid them along the way. So do you know someone in your social environment who is all that?

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The mentors' help is much needed in situations when you are a forex trading newbie carving out your way to becoming a proficient forex trader.

A major percent of forex trading newbies fail to unleash their full potential and make their goals come true simply because of one initial turbulent market situation that makes them leave earlier than expected.

A reliable forex mentor is the one who will help you prevent the rookie mistakes in the real-world forex trading, the one beyond the stimulation demo trading accounts and the money at your disposal to train with.

Although it will be helpful to have a forex mentor it’s likely they will not help you to learn forex trading from scratch. In this case, you can start with a reliable forex trading education course like one of the many provided by Trading Education that will provide you with the valuable fundament of skills and knowledge. 

A forex mentor is much needed for keeping you company too in this realm where the market is not always kind to your money.

You can meet like-minded people and share ideas and opinions while you visit one of the great courses provided by us. However, a forex mentor can be the last missing link to reach a professional level.

A forex mentor is a much-needed support that will help you master forex trading. A forex trading professional will be your insight into the world of market practices and strategies, a provider of helpful tools, tips, and recommendations, the one who monitor your risk-management, who shares all forex trading news and trends with you, and overall the one you will follow as a leader until the point when the forex mentor finally helps you build yourself as the leader.

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Envision the moment when you master forex trading. Well, perhaps this is not absolutely possible since forex trading is a life-long journey of self-education and self-improvement but a reliable and experienced forex mentor can definitely provide you with the support to start every day of currency trading with self-esteem and knowledge.

In fact, the proper set of skills gained with the help of Trading Education’s courses and the guidance of a trustworthy forex mentor can help you be closer to making your dreams a reality and be far from the shouting boss or sleeping your way to retirement on the desk.

In order to contribute the mastership and professionalism of a forex mentor, we at Trading Education provide you with your daily dose of forex trading educational materials and helpful articles, interactive, entertaining, and informative videos and quizzes, and insightful webinars. So now you have built the base of knowledge, next you are supported by your mentor, and finally, you have the chance to turn forex trading into your dream day job.

how to turn forex trading into a dream job

No matter if the forex market is booming or crashing, it always has its fair share in shaping millionaires.

Moulding yourself as a successful forex trader is often a matter of following the career path of big traders and forex market wizards. This is a method that many adopt on the initial stage of their career as it is proven as an effective one.

Trading legends shaped the forex market the way it is nowadays and there are many names in the list of inspirational giants, who can navigate your way in this field with a lot of potential as bright examples of trading efficiency and motivation.

The fact is that everyone has the chance to become a forex trader. It does not matter if what you work with is a fancy office or your parent’s house basement. The charm of the currency market is hiding in the fact that no matter the background, everyone is a forex trading beginner setting the same goals for the near future.

There is no doubt that everyone needs a good mentorship along the way too. In fact, having a mentor is described as a major factor for their success by a big number of the big names out there in the forex realm. 

To be able to find someone experienced with a vibrant and memorable style of trading and impressive risk-management skills, patience, and discipline to mentor your own growth and development is considered as a blessing for many traders. In fact, the nerve-racking losses that almost every novice will stumble upon on an early stage in the forex market can definitely make you leave the scene forever. However, the good mentor will share their secrets about how to outgrow your fears and teach you how to respect the market and risk and advice you how to fall into the trap of the amateurish behaviour of revenge-seeking over-trading by using margin capital and no considering the possibility of an even bigger crash. Such behaviour has no place in the realm of professional foreign exchange strategies and the good mentor will show you and teach you professionalism.

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How to find a forex mentor?

how to find a forex mentor

Many of the forex beginners start with reading books by market gurus with the hope of adopting effective on-the-shelf forex trading strategies and manoeuvres and the inspiration for a bright and bold trading style. Everyone hopes that the wise words shared in those books will help them avoid the bleeding from the self-inflicted wounds many forex beginners struggle with. However, make sure to don’t buy those books selling hot tips for overnight success. Those will not make you a good forex trader for sure, simply because they do not reveal the truth about how the authors became millionaires. In fact, it was not the forex trading that earned them all the money but the fact that millions buy their marketed books. Read the authors who have a real successful background in forex trading and try to choose different people with different trading styles. Some of them will follow the trends, some of them will have a technical analysis approach, while others make money with a fundamental analysis approach, you need to make your research so you can decide what approach matches your trading style the most. Like-minded people will often make the best forex mentors for you.

The Internet is yet another great place to find a forex trading mentor. No, you don’t have to browse the whole spectrum of nonsense available online, you rather have to put your trust in people with proven experience and set of in-depth knowledge. As an example, we at Trading Education can efficiently navigate your overwhelmed beginner to a point where you feel knowledgable and have learnt some of the key elements of forex trading. With a perfect and up-to-date blend experience, the right skills, hard work, discipline, and business acumen, we can be your helping hand in paving your way to understanding forex trading.

How to tell the real forex mentor from the deceptive one?

how to find the right forex mentor

First and foremost, when looking for a forex mentor you have to someone who both mentor and trade. Obviously, you look up to this person and you are trying to learn from them so they have to be up-to-date with all news about the forex market and know what strategies work the best in the current moment.

Surprisingly, many people claiming to be professional forex mentors are actually the one who failed to trade. What you need is a first-hand experience and a successful path you can follow. However, there are also many successful forex traders who make a significant profit but they remain unnoticed and are not involved in contributing to the mentoring world due to a number of reasons.

To be honest, finding the right forex mentor is not an easy job but it is definitely one that worth all the hard work.

The best way to tell if someone who tells you they are a professional and experienced forex mentor and trader is judging them by the information they provide for themselves. Research them online, have an in-depth look at the way they describe their experience, do not be afraid to ask questions. In case you are not able to find enough information for the people you are researching online and the success they claim to have, chances are these people are not telling the whole truth. Move and keep on looking until you find a perfect match. If you don’t feel happy and satisfied with the way a forex mentor is explaining concepts and their approach of teaching you should continue your search for a better educator too.

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The characteristics of a forex mentor should have

  • Credibility – Every forex mentor offering their service of teaching and supporting you should be able to prove that they know what they do and they are talking about. A proven track record is a good start to work as an evidence of credibility. The record should be detailed and explain their forex trading progress in depth.
  • Inspiration – Being a good forex mentor goes beyond the scope of just being a professional trader. The mentor should be a charismatic and inspiring person you look up to. In addition, your forex mentor should be supportive on a variety of related topics and not just the fundamentals of the forex market itself, so search for someone who can discuss and advise you on topics like aspirations, goals, opportunities, relationships, and even faith.
  • Reliability – Of course, you have to be sure that you can put trust in your forex mentor. The relationship between you and the advisor should be built upon reliability. If you don’t feel like you fully trust their judgement it will be very hard for you to open your mind and learn from them.
  • Honesty – As you may already know, the forex market is not the one that necessarily will treat your money kindly every day. So if your forex mentor promises you 100% success you better think twice and question their honesty.
  • Support – There will be times when you will have to trade alone and if you have a good forex mentor you will also have all the comfort, confidence, and discipline to do that alone. The professional mentor knows how to develop your potential to the extent where you can operate as an individual trader yourself. Considering the fact that no matter how rare it happens but some forex traders are really going to provide you with their mentorship for free, you probably cannot expect them to stick with you 24/7. However, the good forex mentor knows how to shape you as an individual and confident trader.
  • Genuine Intentions – This one can be hard to sense in a forex mentor considering the fact that most of them will offer their mentorship for a fee and sometimes you have to even go with your guts and judge of the advisor is really having genuine intentions when offering their service. In case you feel like they are just trying to sell you something but they are lacking the genuine intention to actually teach you and make sure you understand all the concepts then maybe you better continue your search for a mentor.

What to expect to learn from your forex mentor?

what you can learn from your forex mentor

First of all, before considering searching for a forex mentor is good to know what you are actually looking for. If you do not have any idea what you want to learn from your forex mentor, if you are hoping that they will simply teach you something that will help you become a successful forex trader with a high profit, maybe they will share some sort of a secret that will send you directly to the finish line of this otherwise long and exciting journey trading is, then it will most probably be very difficult for you to find a mentoring style to suit you.

There are many factors you should consider when narrowing down your choice of forex mentors available to help you out there. Try to think of how much time you can spend trading on a daily basis, what your goals are, are you trying to become a day-trader or a position trader, the number of your initial funds, what is your learning style, how much of a risk you can tolerate, etc. In a nutshell, if you don’t know your final destination, it will be really hard for you to plan how to get to it.

Sure enough, the main thing you will expect from your forex mentor to teach you is an effective forex trading strategy you can adopt. Despite the fact that many forex beginners assume that a successful trading strategy is based on skilful use of some sort of fancy trading software or the use of lagging indicators, this is definitely not the whole truth and if this is all you can learn from the forex mentor you work with, you better ask for your money back.

In fact, the good forex mentor will teach you how to have your own perspective and understanding about the forex market dynamics. In a long run, your own perspective will help you the most about assessing, navigating, and even forecasting the forex market. It will save you from turbulent events and give you more confidence to go with your guts when needed. Once you develop such a perspective you can finally take off the “training wheels” of the forex mentor and go conquer forex by yourself. This is also the exact moment how important and significant it is to learn from an experienced and reliable forex mentor.

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Summary:

Forex trading can be a lonesome journey with no like-minded people to share your ideas and aspirations with around. An experienced and reliable forex mentor will not only keep you company and provide you with support when you are about to boom or crash on the currency market but actually, teach you how to have an efficient perspective of the market. Narrowing down your choice when searching for the right forex mentor is not an easy job and you have to focus on finding someone with credibility, honesty, great experience, and natural charisma.

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