Why a beginning trader needs mentor. Is it so necessary at all?

Ted Capwell Updated:

Do new traders need a mentor?

For the vast majority of new traders on the exchange, there are masses of hidden tendencies and specialized aspects of trading that are inaccessible, which have a strong influence on the end trading result. This is why a problem arises every ambitious new trader of how they can best learn about the field. Of course, you could say that in this age of technology that enables access to research materials such a problem shouldn’t arise. But how can a user, who has no practical experience whatsoever and has never dealt with the trading process on exchange platforms, comprehend all the field-specific knowledge and finer details of trading. Once you understand this, it becomes clear that the first step should be finding a mentor to fulfill this role. One who can give explanations and direct potentially successful traders along the right path. On that note, we propose considering the question, do new traders need a mentor, their educational role in explaining the trading process, as well as the problems that come along with it.

So, in his time, the brilliant trader Larry Williams made quite the philosophical statement that “anyone can become a great trader!” It should come as no surprise, after all, trading or exchanging any good for another is built into our DNA. All you need to do is look at history to see that. As soon as people began to produce surpluses of any good or resource, they began to search for opportunities to utilize this with the goal of obtaining even more goods. Throughout history, people have perfected this process and, as a consequence, exchange platforms appeared where today trading operations take place on a hi-tech level using innovative financial tools. Despite Williams’s popular expression, new traders face a wide variety of problems that a professional mentor or teacher can resolve using their hands-on experience and skills.

A professional education is necessary for nearly every professional field. These days it simply isn’t possible to be born with all the necessary skills without any previous experience or education and just start a career. The role of mentors hold significant meaning in a people’s individual lives because they can not only gain skills quickly and effectively in their chosen field, but they open up an opportunity for professional growth. This can be said about any process. For example, parents teach us basic skills like walking, talking and taking care of ourselves. Our teachers at school build the foundation of our professional knowledge, such as writing, reading, and math. In further education, mentors introduce us to our chosen fields. It is the same for trading with financial assets. Without a mentor, it is difficult to achieve success. We propose taking an in-depth tool at the role and job of a mentor in regards to financial trading.

Do new traders need a mentor?


Why do you need a mentor when you start trading?

As a way of expanding on this question, suppose a typical person decides to try their hand at trading after seeing an ad online. They find a respectable platform that provides a free high-quality professional education. They successfully undergo the theory and even practice on a demo account. That’s it, they are ready to make a significant profit and have already begun to decide on what they want to do with the money they will earn. However, they quickly understand after their first live contracts that it isn’t all as simple and clear as it was in the books. As follows, the new trader starts to make a lot of mistakes and pays a high price for their trading experience. As we already mentioned, the majority of investors lose all their funds over this period and, in devastation, leave the market and trading behind. This is where the place of mentors comes in, who thanks to their experience and skills become positive beacons for new traders to gain information. Keep in mind that only people with significant hands-on experience can help you bridge the gap between theoretical concepts and knowledge and the actual trading process. Don’t get it in your head that once you are familiar with basic theoretical knowledge on trading that you can build highly-professional strategies, develop rules of behavior on the market, and work out systems for capital management. No, such experience alone won’t suffice. Other than that, new traders need to overcome a wide variety of psychological aspects of trading on the financial market. In this case, you can’t avoid the need for someone with experience.

And, of course, the quality of educational materials on trading available on online platforms is worth mentioning. Despite what the aggressive advertisements say where various online resources or “experts” claim that with only a few lessons or a bit of training you can become a successful trader, the actual quality of these educational materials leaves something to be desired. Only a basic selection of concepts and professional approaches for trading with financial assets are often provided. Such a limited selection that they can’t possibly provide adequate information on the finer details of the trading process. Meaning that if you haven’t completed a specialized university course on trading, then don’t expect it to be a professional level of field-specific knowledge. And experience can be resolved through a mentorship.

More proof of how important it is to have a professional mentor for trading from the historical point of view that all of the famous and brilliant traders themselves had mentors and teachers who explained all the nuances and professional trading approaches to them. Of course, every one of them designed their own system for working on the market, and possibly even a trading philosophy, however, their initial push toward success was from their mentors. Many professional traders say that they couldn’t have achieved such success without mentorship programs. They only formed the basis that enabled them to become successful investors able to achieve astonishing results through the support of a teacher, a trader, a critic, who consulted them in complex market situations. You can take a purely psychological aspect of working on the financial market from this. That being that, more often than not, mentors are highly regarded individuals in their field, therefore they act as an example of success, driving you to improve yourself. Their mentor’s success drives their ambitions, motivating their professional growth with an experienced trader’s support.

When you take into consideration how important mentors are for developing the professional skills of new traders, working with an experienced teacher is a worthwhile long-term investment that will pay off further down the line. See for yourself, when you work with a mentor, even on a paid basis, you are making an investment in yourself. Your teacher can help you foster the necessary skills in terms of bridging the gap between theoretical trading concepts and practice, identify your strengths and weaknesses, let you in on trading secrets, and explain the nuances of trading that only come with experience. All of this together will empower you to generate profit on the financial market for years to come, fully recouping this initial investment and enabling you to achieve more success trading.

Let’s go through some of the conclusions thus far. When going through all the perspective aspects of working with a mentor, we can say without a doubt that a teacher is a basic necessity for any trader aiming high! Let’s avoid the more philosophical musings and focus on the more concrete, clear benefits that a good trading mentor provides. Here it is worth pointing out the following:

● They can make the most complex aspects as simple as possible – It is no secret that trading theory is fairly difficult for the average person to comprehend. Moreover, it can be difficult for someone without experience to digest such information. Private lessons with a mentor can build your basic understandings of the concepts in an easier and more accessible way. Other than that, when mentors’ outline their lesson plans they always begin from their student’s individual intellectual level and teaching them professional knowledge from their starting point. Meaning that your learning experience will be less intimidating and more clear.

● An individualized approach – When you work with professional mentors you get to work one-on-one with your teacher. Through talking to you, they can work out what potential strengths you have, as wells as the ways to minimize the influence of your weaknesses on your trading results. Moreover, by learning through personal discussions you can figure out tactics and behavioral patterns of working on the market that are best suited to you as an individual.

● Effectiveness – A mentor will not only break down the theory for you, they will also give you hands-on practical advice. The simple example of this would be how there are innumerable different trading systems on the market and nearly all of them produce profit. However, one strategy might generate profit for one trader, but for another only lead to losses. There is no entirely universal strategy that will work for every single investor. In this respect, your mentor is your irreplaceable trading partner. Thanks to their years of experience, your mentor will be able to evaluate your skills and personal characteristics, enabling them to recommend you the most effective strategies for evaluating market rates, generating maximum profits for you.

● Insurance – Typically when beginners are taught privately by a mentor there is a contract that clearly outlines all aspects of their work together. Therefore, your investment is fully protected during your studies and guarantees that they have a defined professional level of knowledge of financial trading.

As you can see, mentors provide many advantages that you won’t have if you simply teaching yourself. They will also make more of your time during the learning process.

The form mentorships take in trading

These days mentorship programs are available online, as well as in person. Mentorships come in the following forms:

● Individual mentoring – This is the most expensive option, where a mentor works directly with you. Despite the high cost, this is the most effective way of learning. You benefit from all the various educational approaches, as well as getting the best quality professional help.

● Group mentoring – In this case you are mentored in a small group. This way of learning is less expensive, however, that doesn’t mean that it is less effective. Studying in groups polishes your experience and enables you to benefit from the professional skills of others in the program, which can be very useful in the long run. As every participant of the group can learn additional information on the nuances of trading and, on the basis of that, form their own practical trading strategy.

● Consulting – This type of mentorship appeared along with the rise of online trading. These days you can find many good experts online that provide training and run webinars for new investors. The advantage of these are their low cost, often they provide training free of charge. You can consult on any specific technical issues in regards to trading and expand your professional potential as an investor from the practical experience of professionals. Other than that, such a format is often provided by trading platforms through communicating with their individual managers and analysts.

Pay attention, as these days it is easy to find a professional mentor in any form that works best for you. There are a wide variety of options available that turn a beginner into a successful trader.


The answer to the question our article poses in regards to if traders need a mentor is an astounding yes. When you have an experienced teacher at your disposal, you set the stage for achieving success, expanding your potential as a trader, and laying the groundwork for financial growth.


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