I usually spend some time floating around various trading forums. I use the term floating because I rarely post but more observe and take in the conversations that go on. One of the more frequent topics I see is new traders asking for help.
What books do I read? What does this mean? Do I have enough money? Technical or fundamental analysis?
Now we all had to start from square 1 and asking questions is usually how we moved to square 2. Nothing wrong with that. The problem is that you get back a million different answers. Before you know you are told to read 50 books, technical analysis is the devil, you need to have the MACD indicator on your charts, and you shouldn’t use the MACD indicator because it is wrong and stupid.
Yikes! That makes it tough for a new trader with no knowledge to know exactly what they should be doing. So I will let you in on a little secret and tell you what the best learning tool is.
Find a mentor or hire a coach!
That is right you need to find someone willing to teach you stocks. First you need to find a trader you want to be like. If you can’t sit in front of a computer all day then don’t go looking for a day trader. If you want to be a long term investor then don’t find a swingtrader. There are a million and one traders out there all trading a different way. Find someone who fits with your style. Once you find that special someone then you need to see if they will mentor you. This won’t be an easy task since nobody likes doing things for free (especially traders) and mentoring is a full time gig. So after you go through some no’s you will probably get a couple of yes’s. These mentors will tell you yes because they are big on their ego but probably won’t come through for you. Keep looking, don’t give up now, and you will find someone that can put in the time to help you. Getting your information from one source that is proven in the markets will help make you a better trader. Asking the internet what you should do only gets you 1000 different answers leaving you as clueless as you started.
A mentor will help you become like them. They will help you weed through the crap and cut your learning curve down which usually means fewer losses. Having someone to bounce ideas off of and help pick you up out of a tough spot is really needed in this business.
Like I said above the problem with mentors is nobody likes to work for free. So if you run across this then hire a coach. Find someone who is proven and is offering their services. They will usually act just like a mentor but for a small token. Don’t shy away from them because they are asking for $1000, $2000, $3000, whatever… Trust me it is a small price to pay to have someone guide you through the markets. The amount you spend on a coach will cost less then you learning the “hard way” in the markets. A coach is someone who has already been there and made the mistakes before you do.
Do yourself a favor and find someone to help you. In turn you will be able to conquer the stock market and just may make a lifelong friend.
