The foreign exchange market is filled with enormous volatility as trillions of dollars are traded every day around the globe. Trading in such a highly liquid market can take you to the moon, but at the same time, it can be highly risky. To manage these risks with appropriate measures taken under the technical analysis or fundamental analysis, you may need a Forex mentor who can guide you throughout the beginning of your trading journey.
There are various sources online (blog articles and Youtube videos) and offline (books and magazines) through which you can furnish your skills and knowledge required for FX trading. But beginners and intermediate traders need consistent guidance from someone to achieve higher returns in less time with proper risk management.
There is no doubt that you can educate yourself, practice and hone your skills all by yourself, but it would require more time as you will be alone on your trading journey. There can be several benefits of taking direct guidance from a Forex mentor. But here we are discussing the most important ones and the overall importance of a Forex mentor for you.
Who is a Forex mentor?
Beginners or novice traders usually get confused by the massive amount of data and information available on the internet. So what they do is hopping from one thing to another to find the upside in trading and end up being misguided. It can be so frustrating, and then they have to start with a whole new beginning. A mentor can preach you only what is necessary and avoid all less important things in forex trading.
S/he can be your companion on your trading journey to manage the risks with appropriate measures and help you become a successful trader. You can learn right from the beginning about the trading techniques that would be required in exceptional cases, like when the market is down and how to reduce the potential losses in extreme volatility. A Forex mentor holds your hand while you march through the ups and downs of the market to mitigate the risks with a detailed approach.
The mentor will share his/her own experience in the FX market and guide you through the combination of success and failure in forex trading. A mentor also plays a huge role in helping the traders to identify the trading approach that suits them.
Your mentor doesn’t need to be an individual or a professional trader with a lot of experience. A well established and reputed brokerage firm can also be the right mentor for you. A Forex broker can guide you all the way from choosing the position size according to your risk appetite to the proper method of using the analytical tools and trading signals to enhance your profits.
How is a Forex mentor a key to successful trading?
A Forex mentor can help you in several ways. To remove the barrier of fear and doubt of losing money due to the lack of experience in Forex trading, you must go through the ways discussed below through which the mentor will help you. You can also tag them as the benefits of the right mentor.
Identify the suitable trading method
The mentor will help you to find a suitable trading method. You can get friendly with a specific method by figuring out various things with the mentor. A broker can help you identify the method by offering you dedicated support and letting you know what is good for you according to your trading style. The Forex brokerage firm ROinvesting is well known for helping its clients to determine the suitable trading method.
The customer support agents of ROinvesting are well qualified and experience currency traders. Along with dedicated support, a broker provides its clients with a demo account. First, traders simulate their trading method and get familiar with the suitable trading platform. Then, through simulation on a demo account, they identify what works best for them and continue their trading journey using the method that suits them. You can access the ROinvesting demo account for free and use the flexible amount of capital the broker provides to understand the global markets and trade in them.
Learn to manage your capital
It is one of the most important and common skills required for trading. Managing your capital is very important as you cannot lose your hard-earned money under the influence of any wrong decision. Wrong decisions are born out of a lack of experience or guidance.
Both things play a significant role in the trader’s journey. If you are an experienced Forex trader, you may or may not require guidance. But if you are a novice, guidance is crucial for you to manage the capital appropriately. People do not understand the little concepts of money management in trading just by watching a video or reading an article. Instead, they should learn with each trade by putting your money mindfully.
A customer support agent of a broker or an individual mentor can help you manage the funds in your trading account for a better understanding of capital usage.
Technical and analytical tools
Without technical analysis, one cannot become a successful Forex trader. Therefore, before getting your hands on currency pairs, you should have the knowledge of essential analytical tools required for technical or fundamental analysis. A mentor will give you an idea about these analytical tools to use them efficiently.
There are various tools, including candlestick charts, moving averages, Fibonacci retracements, Elliot waves etc. All these tools are available on a trading platform provided by the Forex brokerage firm. In addition, you can get familiar with tools on a demo account and take the guidance of your dedicated manager or customer support agent.
They will teach you about the effective use of these tools through live chat, webinar or email. Beginners typically underestimate the importance of technical analysis, but they should realise the power of solid technical analysis before buying and selling the currencies.
Education and research support
A brokerage firm has its own education center, consisting of as many materials to get knowledge about different markets worldwide. The various education and research materials include articles, webinars, VODs, economic calenders, a glimpse of professional traders portfolios for copy trading, etc. You can find these materials in the education center available on the website of the brokerage firm.
The award-winning Forex broker ROinvesting also offers a wide range of educational materials on its website, including those mentioned above. The education center not only helps you by providing the proper knowledge but also gives you updates as the international markets are progressing each day because the number of traders keeps increasing.
The main benefit of the education center is that whenever you have any doubt regarding opening your position, market trends etc., you can tap into the broker’s education hub and learn the things. An individual Forex mentor can also help you get the right results by providing cheat sheets and showing his/her investment portfolio. You have to understand the pattern behind the buying and selling of the currencies.
When you buy a currency, the value of that currency rises against other currencies, and when you sell it, its value falls. So you need to understand the right time to trade. A mentor can help you with it.
Another meaningful way by which a mentor can help you. Trading signals are the part of core strategies of professional trading, but now beginners are also adopting this strategy. Trading signals show you the right time to open or close your position. Knowing the correct entry and exit points is one of the major factors that influence your earnings.
The Forex brokerage firm ROinvesting offers trading signals to their clients with the right environment along with customised news alerts. These alerts will give the right direction while you are buying or selling the currencies. Trading signals will trigger the buy or sell decisions with predefined patterns.
As you can access the trade history with ROinvesting, you can determine the entry and exit points by analysing the price patterns thoroughly.
Dedicated client support
The dedicated client support is an efficient organic way to guide the traders by a brokerage firm. The dedicated support not only gives you advice on each step of your trading journey but can manage your trading account also. In addition, they guide you according to your position size and risk appetite.
You can ask various questions from a dedicated account manager, such as what is the right time to enter the trade? How can I manage the multiple positions at the same time? Shall I go long or short? Should I use the leverage for a particular trade or not?
You will get the answer to all these questions from dedicated client support at the right time. The agent behind the screen is well equipped to answer all the questions you may have as s/he has the great expertise of the respective industry.
Getting help from the Forex mentor is a great decision that can serve the long way in your trading career. But you should be aware of all the scams and fake mentors out there. There are greater risks of choosing a mentor or a broker without doing proper research. Always select a trusted broker like ROinvesting or a well reputed Forex mentor for the guidance. Read detailed ROinvesting review
So now you already know the importance of a Forex mentor, take the best decision for you. If you want to go with the individual mentor, you can go with him/her, or brokerage may also have the right choice.