By Rob Colville on September 2, 2016 in
Nobody is ever born a great trader, nor do they become one overnight, but what many people don’t realize is that most great traders asked for—and received—some much-needed help along the way. Not that anyone gave them some “secret” to profitable trading, mind you, but maybe it was one or a series of lessons, or a new perspective they hadn’t considered before, or maybe just some added confidence and validation that helped things finally “click” for them.
Sometimes little things are all it takes to create a major turning point in one’s trading career. So what about you…could you benefit if you were to get help trading, and if so, what sort of help would you ask for?
Perhaps you’re new to forex and need to build knowledge and have a mentor help you navigate the inevitable trying times early in your career. If so, the following “red flags” that suggest you need to get help trading will probably sound familiar. But even if you’re a more experienced or accomplished trader, the underlying advice is the same: To be the best trader you can be, and reach that level much sooner than you ever could while going it alone, don’t be afraid to get help trading!
Most new traders gravitate toward major currency pairs like EURUSD, GBPUSD, and USDJPY, as well as commodity currencies like the Australian dollar (AUD), Canadian dollar (CAD), and New Zealand dollar (NZD). These are all among the world’s most well-known and liquid currencies and currency pairs. What new traders don’t necessarily know or understand, though, is how well (or poorly) each currency’s tendencies and risk profile fit within the realm of their unique trading strategy, and that alone is reason enough to get help trading.
Selecting which currency pair(s) to trade, and perhaps more importantly, eliminating any and all that are less than ideal given your own trading style, risk profile, and trading objectives, is a key step for every aspiring forex trader. It will help focus your trading, not to mention save a lot of time, energy, and valuable account capital that could otherwise be wasted while bouncing around between excess currencies.
Conduct your own research and demo trade for yourself, of course, but don’t hesitate to get help trading if ever you’re in doubt about what you’re trading and whether or not there’s something better for you out there.
Knowing where to place your stop-loss is a fine start, but it’s not all that’s meant by effective risk management. For example, do you know the full reasoning behind why you place your stop there; can you tighten it up further under certain conditions; and can you adjust position size to better manage risk on all or select trades?
All those are realistic considerations that those with a full and total understanding of how to manage risk have studied and taken into account. And sure, it takes plenty of time and experience to become a great manager of risk, so don’t worry if you don’t feel like a master at this point. The real problem might be if you do feel like a master, but if unbeknownst to you, you’re actually making mistakes and are overexposed to risk. Learning how to lose less is yet another fine reason to get help trading.
I probably should’ve listed this reason first and right up front, but it really should go without saying. If you aren’t coming into the markets each time with a very specific purpose, and using a well-documented and verifiable strategy, it’s time to stop and get help trading immediately!
For many, it’s hard to imagine how any trader could just “wing it” day in and day out, trading what appears to be one pattern one day, and wildly switching markets in search of completely different trade set-ups another day, but it happens. (It’s not a path to success, but it does happen.) On your journey to ultimately becoming a smarter and more profitable trader, though, make sure you’re always in the know and in control over what you’re trying to do. And if you can’t accurately describe your strategy to a friend or colleague in only a sentence or two, then that may well be a sign that your strategy lacks direction and focus, and you need to get help trading.
There’s probably nothing worse than trading devoid of any discernible strategy, but a close second might be trading with a strategy that, for whatever reason, just isn’t working. It’s not especially common to lose 5, 7, or 10 trades in a row, especially if your winning trades are modest and don’t make up for that and then some. And while plenty of high-performing strategies only win about 50% of the time, if you’re losing with repetition, and losing many trades right in a row, I’d call it a warning sign that you should go get help trading.
Perhaps there’s a problem in the analysis or execution that can be fixed or corrected, or maybe it’s just that you aren’t trading a proper strategy for the market(s) and/or time frame(s) you’ve chosen. Maybe it’s worse still, and your strategy just doesn’t work, period. Regardless, wouldn’t you want to know about the problem and its potential solution long before you’ve lost most or even all of your hard-earned trading capital?
Beyond the mechanics of trading, there’s the psychology of it, which for many, is far more important! Trade psychology, in fact, is an industry all its own, with esteemed experts able to teach mindful thought patterns and how to overcome negative ones when trading. So whenever you think to get help trading, don’t assume that it’s only in regard to technical analysis methods or identifying set-ups.
Moreover, just as you can seek help for the finer points like trade execution and money management, you may also work collaboratively with a mentor or coach to get a handle on the mental side of trading, too.
Here are a few common problems that might be good to address with the help of a trade psychology specialist:
Recognizing that you need to get help trading can be difficult; but knowing where to turn for that help should be much easier! Consider joining The Lazy Trader member community for ongoing trade ideas and education, one-on-one mentoring opportunities, and a lifetime support system that enables you to find the insightful, professional advice whenever you need it, and for as long as you trade! Click the banner below for details and to begin your no-risk trial membership today!