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Wednesday, September 17, 2014

Is it possible to learn forex from a trading coach?

By Luke Peters

Forex is known to be a highly volatile market and most traders need years of experience and learn from their failures to become true masters of the trading art. Most people think of trading as an art which is self taught and it often requires one to go through several trials and failures to be able to derive regular profits from the market. 

Although, trading is a fine mix of art and analytical science that develops and refines with time, the learning process can be essentially hastened through the help of a trading coach. It is pretty believable fact that it is possible to learn the art of trading through the guidance of a mentor who can help you focus on the right things and teach you the art of patience and discipline. Trading is not about doing what is requested but all about doing what is required and maintaining a trading psychology.

Why do you need a coach?

Forex trading tips
Forex trading is risky and requires know-how to lower risk
Why do aspiring athletes need a coach to develop their skills? The reason is simple. While an aspiring athlete has his youth and strength, the coach of mentor has experience in said sport. And it always takes the guidance of a suitable master to learn the major areas where one needs focus in order to maximize your performance. One way to receive guidance about forex trading is by signing up for and utilizing technical metrics such as the Tradeology forex tool on the right of this page.

In a highly unstable market like forex where more than 90% of the trades end in losses, a string of continuous initial losses can shatter the moral of even the most passionate traders. A coach or a mentor can essentially help you understand the basics of trading and the main areas that you need towatch out for and what situations to avoid. Having a highly experienced trading mentor, can not only help you learn the art of trading at a faster rate, but will also protect you from initial risk.

How to choose a trading mentor/coach

1. Make sure the coach screens you

There might be several people who would promise to teach you the basics of forex trading for a fee. One can always learn how to trade by reading books and taking the help of a fellow trader, but to master the trading art you need to determine whether you fit the master’s teaching style or not. Let the coach decide after a screening round whether he wants to take you under his wing or not.

2. Ask the coach to pinpoint the reasons for your losses

After months of anguish and frustration when you’re unable to make any progress in the forex trade, the flaw often lies in your approach. Ask your chosen mentor to show you and pinpoint your flaws and the various other factors why you lost money in the first place. Several new traders might start with an effective trading strategy while entering the market, but still end up losing money due to external factors. An experienced coach/mentor should be able to notice all the reasons why you as an individual, lost money in that particular trade.

3. Coach should focus on how you act out under stress

Remember, Forex trading and emotionsare mortal enemies and one needs to be ruthless yet alert at all times in order to take regular profits. Your natural talent might come in handy when spotting a profitable trade but it’s your emotions that come in play when faced with decisions where to take the available profits or sell your current position. Fear and Greed are the worst enemies of a successful trader and only an experienced mentor can help you control your emotions.

4. Coach should focus on developing a routine

The chances of success in forex trade highly depend about the number of hours spent in the market. Most people think of forex as a full time market due to it being open 24 hours from Monday to Friday and try to grab every possible trading opportunity. But most experienced traders are aware of the fact that in order to achieve regular long-term success in forex, it is very important to develop a trading routine.

Despite of trading being a highly intuitive business, the guidance of an experienced trading coach or mentor can help you come up the learning curve at a faster rate. A trading coach and help new traders cushion their entry in the live market resulting in fewer losses and more profits. 

About the author: Luke Peters is an active forex trader on various online trading platforms like Corner Trader and has written several articles on trading and finance. He likes spending his free time reading various books and other material related to finance, management and trading.

Image: Rodomontade; GFDL, CC BY-SA 3.0