You have an obligation to yourself to do your due diligence in selecting your trading mentor. Just as you would scrutinize the services of an accountant to defend you against the IRS or ensure a lawyer is in your court, you need to feel comfortable with the person coaching your trading. He/she must be understanding, empathetic, patient and committed to you. In addition, you need to have that certain ‘chemistry’.
There’s no shortage of trading gurus and services. Many simply offer buying and selling tips, suggesting stocks ready to skyrocket. Services teach trading techniques, many of which offer a dozen or so spread strategies. Some mentors teach a particular strategy they learned along the way. Whatever your aspirations, you need to feel totally at ease with the person providing for you.
It is important to ask the following key questions before choosing a mentor:
- Does your coach trade his/her strategy?
If not, run. If they don’t even have the confidence in their own trading techniques, why should you?
- Where does your coach derive his/her income – trading or training?
It had better be from what they teach. If not, their strategy is useless – or worse.
- Does your mentor ever lose money?
If they answer ‘no’, they are lying. No professional trader ever walked the face of this earth and never loses.
- Is your mentor empathetic?
Ensure that he/she truly understands your situation. You don’t need to be chastised if you made a mistake.
- How about accessibility?
If you have to wait for days to get a response from one of his/her cronies, you’re with the wrong mentor.
- Are coaching costs reasonable?
Is the cost fair? Don’t just look at cost. Coaches are all unique. A good coach is costly… and worth it.
- Does your coach publicly display his/her trading results?
Let’s have full disclosure. If not, what’s hidden? Not trading? Losing? Not taking positions properly?
- Do they live in the past… ‘if only’, ‘would have’, ‘should have’… all rhetorical.
These words should be banned entirely. They serve no useful purpose – even less as a coach.
- Does your mentor accept responsibility for your training?
If he/she aims to ensure that you understand and act accordingly, you have a gem!
- Is your coach committed to the program, to you?
This is key. You want to make sure they stand by all the way. Withholding nothing. Demand a commitment.
Your trading is only as good as your coaching is. Choose someone who works for you in each aspect of trading. Your financial future depends on it.
~ Hugh W. Grossman, Head Trader at Day Trade SPY.
Hugh Grossman is the founder and Head Trader at DayTradeSPY and uses his vast experience to teach his methods to make consistent daily gains trading SPY options. Join Hugh in his interactive Trading Room to see how he regularly pulls in the profits!
Want to learn how to day trade SPY options? Join us in Hugh’s Trading Room – a program designed to fast track you to success. You will be able to watch Day Trade SPY traders, Hugh and Alex, daily in an interactive setting. Subscribe here.