How to Break Through in Trading | Traders Hideout - futures trading strategies, market news, trading charts and platforms

Traders Hideout

Discuss day trading practices and futures trading strategies on this forum for all markets. This forum is also for discussing and reviews for brokers, data feeds, and commercial or third party add-ons


How to Break Through in Trading

  #20 (permalink)

Schin Op Geul, Netherlands
Posts: 19 since Dec 2017
Thanks: 13 given, 24 received

My one trader friend suggest I find a mentor and spend money on education.

Do not spend money on education! I'll help you here for free!

If you need a mentor then look at HOW he/she trades.
But the issue you're going to have is that from your perspective (struggling) you may not be able to assess a mentor properly. Your experience will not allow this.
It amazes me how many traders throw that suggestion out there without providing information that would help in assessing whether a mentor is worthy or not.
Mentor profitability is very important, but equally important is mentor knowledge, experience and MO.
An example:
There are 2 mentors...
One mentor teaches entries on CL and executes using various MA's and Fibonacci (he's been doing this for 2 years).
The other mentor tracks the Federal Reserve and US economy and trades spreads across the US curve (he's been doing this for 14 years).
From my perspective, I would not touch mentor 1 with a 10 ft bargepole, even IF he was profitable over the last few months and the spreader was not.
My experience tells me that mentor 1 lacks real market knowledge and is less experienced.

Find someone with real market knowledge. They may likely be a specialist.
The more years under their belt the better.
They will cut years from your learning curve and will give you edge which you can apply almost immediately.

A very good gauge is to ask some questions:
Are you a specialist? What do you specialise in?
(If they specialise for example in spreading the US curve, then get them to explain to you where the Fed is currently and what they are focused on. They should be able to answer quickly and with resolve).
How long have you been doing it?
Over the last X years, how many profitable years have you had?
How good is a profitable year? How bad is a losing year?
How do you determine trade direction?
How do you execute?
Who do you broker with?
What tools do you use to trade? (serious traders use serious tools)
What has your maximum DD from equity high been?
What is your maximum effective leverage?

This should all be done over the phone/Skype! (no emails or messaging). You want to HEAR in their voice experience, resolve and composure.
They should know their trade and it should be evident in their delivery!

Hope this helps.

Reply With Quote