Similar to other financial ventures, successful trading requires a certain level of knowledge and skills. For both novice and experienced traders, there is a non-ending concern on whether they should enroll in programs meant to improve their skills. As such, this article will strive to clear the doubt by answering the age-long question: are trading courses and mentorship programs worth it?
Benefits of a trading course/mentorship program
- Builds confidence: As is the case with other ventures, executing a trade with substantial knowledge and skills increases one’s optimism about succeeding. A good trading course is one that enables you to do exactly that.
- Insures a trader from hefty losses: Starting the trading journey with little or no knowledge of financial markets exposes you more to extensive losses. An apt trading course will equip you with the tools needed to prepare and respond to instances where the market doesn’t move as predicted.
- Shortens path to profitability: Trading by way of trial and error will likely result in hefty losses. In comparison, undergoing a comprehensive trading course means that you are starting from an informed point that will help you evade some unprofitable trades.
As shown in the picture below, trading courses and mentorship programs are keen on aiding traders to invest wisely.
Successful trading involves using apt tools (skills, knowledge, and experience) to increase profitability while lowering the risk of incurring hefty losses.
What to consider when selecting a trading course/mentorship program
There are some universal standards that one should consider regardless of your intentions to enroll in a trading course or mentorship program. For instance, it helps to evaluate the qualifications of the instructor or mentor.
Is he an active trader? Is he successful as a trader? If the answer to these questions is no, you may want to reconsider enrolling in the trading course. This is founded on the reasoning that the coaching will be based on what you could have done rather than rationale and experience-based training.
There are no one-size-fits-all criteria for selecting an apt trading course or mentorship program. Some of the aspects to consider are listed below.
- Asset to trade: Are you looking to trade any asset as long as it brings you the most amount of money? Are you keen on trading a specific financial asset, whether it be commodities, stocks, or currencies?
- Type of trading: Do you want to be a swing trader, day trader, position trader, or scalper? The route you intend to take will determine the amount of time you need to be seated in front of your computer and the subsequent trading course or mentorship program you should consider.
For instance, a scalper needs to be glued to the screen as it involves trades within a matter of seconds or minutes. This is different from swing trading, where a trade lasts for several days or weeks.
- Size of the trading account: Do you intend to start with a large amount of money or a relatively small amount in your trading account? The amount in question will influence your goals and path to accomplishing them.
It is also important to determine if you desire to have your account grow over time or if you are keen on attaining a steady income from trading. These aspects will help in enrolling in a trading course or mentorship program that will yield apt strategies that suit your trading goals.
Are trading courses/mentorship programs worth it?
As aforementioned, trading courses are meant to equip novice and experienced traders alike with the information and skills needed to succeed in the financial markets. However, with regards to trading courses and mentorship programs, there is a constant question on how worthy they are.
It is not necessary to learn the basics
The first step on the path toward becoming a successful trader is to learn the basics. This includes learning how to place an order, conducting a detailed fundamental and technical analysis, and understanding the basic terms used in trading.
Fortunately, technology has made it easy for those interested in trading to learn the basics with ease. For instance, there are numerous YouTube channels and videos with detailed information on how to trade. As such, you don’t have to pay for a trading course to learn the basics.
The trader still has to put in most of the work
Besides, no trading course or mentorship program can automatically transform you from an inexperienced trader to a professional one. Just like other activities such as drawing, driving, or playing tennis, it takes time to perfect your skills as a trader. Simply watching a series of videos or reading specific books is not the solution.
Just like in driving school, a trading course may only give you about 10 hours per week with the instructor. However, you will need to invest more hours in becoming a successful trader. This means that while the trading course will avail you of crucial tips and guidance, you will need to do the most work by yourself.
It gives one a kickstart to successful trading
Based on the presented arguments, trading courses and mentorship programs are worth it. For as long as you are dealing with an experienced trader for a coach, one is able to acquire knowledge that is helpful in trading competently and avoiding hefty losses. For instance, a detailed trading course that costs you $200 can end up saving you $2,000 in trading losses by teaching you how to conduct detailed analyses and place your stop loss/take profit.
Trading courses to consider
As aforementioned, it is important to select a trading course that suits your needs and goals. Depending on those factors, some of the viable trading courses or mentorship programs to consider are listed below.
Trading psychology
A person’s psychology is capable of undoing the progress made in becoming a successful trader. As such, this course may be helpful in identifying when one’s emotional responses are getting in the way of properly studying the financial markets and formulating an apt trading strategy. This includes properly dealing with trading losses and adjusting one’s mindset accordingly.
Technical analysis
Such a course would assist you in identifying various candlestick patterns and analyzing the entire price chart with the intent of pinpointing trading opportunities and probable pitfalls. Subsequently, you will understand how and when to enter or exit a trade.
Fundamental analysis
In addition to understanding how to conduct a detailed technical analysis, it is helpful to gather knowledge on fundamental analysis. For instance, if your interest is in stocks, such a course will equip you with the skills needed to determine a company’s valuation based on its financial statements. This is a crucial step in identifying the best companies to invest in.
Risk vs. Reward
A course on risk & reward is helpful in enabling a trader to manage their exposure to market risks in a better way. While a successful trader focuses on how much money they can make from an opportunity within the financial market, it is also important to be keen on the potential losses.
Losses are inevitable in trading, so a course on risk and reward equips one with the tools and skills needed to aptly prepare for scenarios where the market does not move as expected. Subsequently, one is able to respond appropriately and maintain profitability.
Risk management
A course in risk management should help a trader understand the connection between volatility and trading opportunities. Subsequently, one will learn that protecting your funds does not necessarily mean staying clear of a volatile market.
By identifying the hidden risks and using trading strategies that suit you, it is possible to maximize profits without overtrading.
Conclusion
As highlighted throughout this article, trading courses and mentorship programs are helpful in kickstarting a trader’s path to high and steady profitability. Even so, one has to put in ample work to attain the desired success. Indeed, such platforms are worth it as long as they are comprehensive and reliable.