In this article I am going to tell you from my experience, why is it so crucial to have a FX mentor when starting to trade the currency market for real.
First though, why would you want to trade the FX market for the first place? Well, have you lost your job recently? Want to get out of debt? Do you hate your existing job? Or you dont want to work forever? I could have answered YES to all these situations, not so long ago.
Or maybe you want to make money when you retire and do not want to depend on social security? Want to make money to help with tuition fees or for extra money while you go to school?
If your goal is to grow your capital for longterm profitability then FX is a very good opportunity with much better and stable longterm rewards (though risky) when compared, for example, to stock trading.
So lets get back to the original question, which is why do we must have a FX mentor. The first thying I did, was to try to learn FX myself. When I first started trading, I thought that since there is so much available information on the internet, it should be extremely simple to just look up some nice training material, practice it for a while until I am sure I get it allright, and then I can start trading for real. The thing was that I did not succeed to actually comprehend risk. I believe this had brought me to losing my first account really quick. When I started I hardly understood terms such as lot,risk,contract size, atc.Dont trade until you are sure you know what you are risking!
The second step I did was to take a course from a FX broker. I trusted in what teachers in that place told me though I did not get to see their real account balances. In fact, those teachers had far less successes than what they had tried to show during the course. Why should you think such a brokerage firm worker would teach you to actually make profit and take the agency money? Why a person who knows to profit from the FX market will actually work as an employee in a brokerage firm?
I really had a too high profit expectation. I believed many people lived up to their words, which means has consistent profitability in the market, where in fact very few of them really did. I invite you to go ahead and see for yourself on the internet how many traders you see with three or more year long online success with their full trading history available to log in to (not a screenshot in their site) and see their live accounts. Thus you can understand what most of the traders are actually doing.
The next step for me was to get myself a mentor. This step is crucial for your success because you get to shorten the path, from someone who really know how to do this. Without it you are exposed to misconceptions and unaware of what you really need to do.
Only when I got myself a good mentor who was successful by himself, I started to see consistent profits from my efforts in FX trading. I do explain more about this in powertrendsystem.info such as who this mentor is.
Then a FX users forum was developed in the site where my FX mentor was operating. With many new people contributing, this turned to a great way to exchange ideas, ask the experts of us, and write solutions for the problems we ran into. This really helped and still is helping us to have better systems and maximize our long term profitability in the FX market.