Mentoring and a Knowledge Base

You need to start at the beginning and do it right the first time; do you have money and time to waste by continuously making the same mistakes? Getting you started properly is a key to trading success. A good mentor should be your personal sounding board, to help you to ultimately make your own decisions. In fact, a mentor should assist you to decide what you need to get started as a day trader.

Whom do you get for a mentor? I suggest that you find someone who can provide you with advice on how to set up your own trading plan, select trading strategies, set up an international trading platform and provide you with guidance to formulate buy-sell strategies.

In addition, I suggest that your mentor is skilled in different forms of securities, from equities and futures to bonds and forex. If you intend to also delve into the more complex commodity trading sphere, you may need to get specific expert help.

My advice is to get an experienced mentor, but always ask the question: Is your mentor honorable? Does he or she have a good reputation? Ask for references.

Ask the questions and look at his or her reaction. A good mentor will gladly provide you with answers, while those less honorable may get irritated. In fact, anyone who gets irritated with you should be ignored. You can imagine how helpful they will be when you need advice in future?

I suggest that you take this step very serious and think carefully about finding a good mentor. Paying for the service of a good mentor can be worthwhile, but one that is less than helpful could do more financial harm than good. For instance, if the mentor says that he will charge you a percentage on your capital growth, then there is little objectivity. He or she could place your funds in higher risk securities, as his or her income will be derived from your capital growth. Rather, find a mentor who will get paid a smaller upfront fee, with small capital gains.

That way, he or she has an objective link to your capital growth, but not to the extent that they will place your funds in extremely high-risk securities in the hope of earning a higher commission.

Thanks to all traders, writers, and industry professionals who have been kind enough to share their insights into trading since 1990.

I have been honored to work with them, giving me the confidence to conduct conferences and workshops and setting up day trading strategies.