ACCOUNTABILITY IN FOREX: HOW HAVING A TRADING MENTOR CAN IMPROVE PERFORMANCE
Chris Svorcik is the lead educational strategist for Admiral Markets. With over a decade’s worth of experience in Forex, he has helped thousands of retail traders develop strategies which deliver strong and consistent returns. To celebrate Admiral Markets four week educational trading camp, Chris shares his experience of how using a Forex mentor can improve performance and produce better results.
Most retail Forex traders know that navigating the markets can be a rewarding, but lonely business. It’s quite different from most other professions, as trading performance can be literally measured in real-time with smartphone and tablet applications. It can be a high-pressure game, which in turn can cause fluctuations in discipline and performance.
It’s a common theme which I have witnessed many times during my decade as a Forex educator. But what’s also interesting is how the concept of a Forex mentor has grown during that time. While the vast majority of retail traders know that their success will ultimately be self-made, I know many who have cultivated relationships with more experienced traders to improve their own results.
So what are the benefits of finding a Forex mentor? Is the personal approach worth the time and effort? I certainly think so, as finding accountability is one of the most efficient ways to reach trading competency.
1. Why too much isolation can become a problem
First, let’s explore why too much isolation for Forex traders can be a disadvantage. Acquiring the skills to become a successful trader takes an investment of time. With so many resources and trading platforms available online, it can lead to traders spending the majority of their days in front of a screen on their own. This may sound daunting, but I would actually say that this is a necessary step that retail traders need to go through to reach a professional level.
However, balance with this approach is absolutely vital. One problem that many traders face when acquiring skills online is information overload. This is where there is just too much data (which is often contradictory) for an individual to take decisive action – and Forex is by no means exclusive to this phenomenon. It can be a classic case of paralysis by analysis.
This is where an experienced Forex mentor can really help novice retail traders. Having somebody who knows what trading strategies work, with the track record to prove it, can save huge amounts of time for somebody in the early stages of their Forex journey.
What’s more, that Forex mentor will be able to share the character traits a trader will need to make long-term profits. It’s important not to undervalue how important these insights can be. Being aware of the right mental habits to develop, along with knowing what challenges lie ahead can be considered fantastic preparation.
Put simply, acquiring a Forex mentor can equip traders with the knowledge to make better decisions, which in turn limits the amount mistakes the novice trader makes.
2. The importance of accountability in trading
One of the biggest obstacles independent novice retail traders need to overcome is the ability to stick with a strategy, especially in the difficult moments. In my view, this is where a Forex mentor can really start to prove their worth. Traders who make themselves accountable to an external figure – especially one which is experienced and knowledgeable – stand a far greater chance at of achieving their goals.
A Forex mentor is actually a very similar concept to a personal trainer in a gym. They exist to ensure that original objectives are met, enforce discipline where necessary, provide motivation, and provide support when things aren’t quite working out the way they should.
I have yet to meet an ambitious trader who hasn’t encountered a period of difficulty. I include myself in this category. The best thing traders can do in these periods is to ensure they cover their bases and stick to the rules of their chosen strategy. This can be extremely difficult to do objectively in isolation, but with a Forex mentor, this process becomes much easier. Having access to someone who is ‘outside of the bubble’ is a great way to gain an accurate assessment of performance.
3. How to find a trading mentor
For most traders, this is the tricky part. Finding a Forex mentor can be a considerable challenge if the trader in question doesn’t know what to look for and where to find it.
The most important factor to bear in mind when reaching out to a potential Forex mentor is to make sure that they have a proven track record of profitability, preferably of over more than five years. This ensures that the advice a novice trader takes on board has actually been implemented in a trading environment with a degree of success.
I also think it’s important to try and find a Forex mentor that trades in the same trading session. Simply because having access to the mentor while actively trading is advantageous should any real-time questions arise.
I’m often asked where the best place is to source such a mentor. My advice would be start looking at the educational resources of your chosen broker. For example, at Admiral Markets, there’s a huge focus on teaching clients the fundamentals of Forex, just so that they can get the most out of the platform. Part of this includes one-on-one mentoring through an educational four week trading camp. It’s a great way to ensure that novice retail traders have the accountability they need to prosper.