More than just a good Forex education

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A good trainer and mentor will help his student avoid the pitfalls of the path towards trading proficiency and success. This he will do by providing quality education in trading, starting with the most basic principles and slowly building on them to more advanced and more complex concepts.

In my experience as a beginner, I was blessed to have a trainer who was not just a sincere trainer, but also acted as a mentor for me, who also excelled in the technicalities of trading. He taught me one principle at a time in the proper and correct sequence. He taught about the proper application of these principles in live trading and all the needed preparations for trading. Below are some examples of the basic principles he taught that molded me not only into a proficient amateur trader, but also a better person.

Know yourself and prepare. In essence, he taught me to know the market and know myself - that is, my limitations and capacity in terms of capital and risk tolerance. The Oracle at Delphi stated this as Man's essential purpose: To Know Thyself.

Plan and have patience. My mentor taught me well to determine for myself what I want from trading as well as my time frame in achieving that plan. A clear vision, he reminded, can never be understated in its importance to successful trading. Patience in waiting for the right market conditions is also an essential aspect, without which disaster is sure to follow.

Lower risk. This is in terms of lowering leverage and sums in the beginning, so that if losses are accrued, it will not be too painful, and certainly not terminal! This also applies to risk management in one's trading style, such as acceptable stop losses and trade risk and certainly not getting beyond one's trading plan. Once small profits ensue, one can then increase one's risks in reasonable accordance to one's financial growth, as per my trading plan.

Focus. Babies can't run marathons yet; marathons are for adults. Thus, baby steps are also appropriate. For example, my mentor advised starting with one currency pair first, mastering it and only then handling another pair or multiple currency pairs simultaneously. Also, he admonished me to always stick with the trading plan, stick to it extensively and not to try to shift to another one. Traders must be focused in order to make profits.

Do not fear. He taught first and foremost that fear has no place in trading. It is a sure recipe to disaster, leading to hesitancy and analysis paralysis, not to mention bad decisions. To foster confidence, nurture proficiency and knowledge. Panic and worry has no place in trading, just like it has no place in life.

Do not be greedy. He reiterated the uncertainty of the market wherein the price can go either way at any time. Therefore, grab the profit once it presents itself. Waiting endlessly for a bigger windfall is plain greed; it is the road to perdition that so many have already traversed.

Suppress emotion and be objective and analytical. Emotions have no place in a trade whether it is losing or winning. My teacher taught me that cool and cold calculations win the day, and not base frustration or elation.

Study intensely. Analyze your failures and know what you did in your successes. They are the foundation for future attainments.

Never give up. Determining acceptable losses, having determination and perseverance are the hallmarks of a fighter. With applied knowledge, clear goals and continuous learning, one can succeed. So never give up. This my teacher taught well.

From the few examples above, I learned that the things my mentor taught me applied not only to profitable trading, but also to life. It all leads to character development. I thought I was studying Forex; what I did not know was that I was also learning about life - a bonus that was much more than what I bargained for.

 

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