Q. Why are our mentoring courses different?
A. We do not believe that trading has to be expensive to learn. Our courses are excellent value both with content and time. We are unique in that we offer a complete mentoring course with ongoing support throughout your time as a member of our trading community. We guide you through all areas of trading sharing all aspects of our approach to trading. There is 100% transparency and with no hidden costs. There is also an excellent network of support for all our members with our Trading Room Community forum. We believe communication between the senior members and the less experienced is key to the learning process. Our members never leave once on.
Q. What should I learn to trade first; Stocks, Futures or Forex?
A. There are thousands of stocks, indices, commodities, etf’s, funds, currencies – and more – worldwide from which to choose. We teach to trade on the Forex market as there are around 100 currencies to trade on, which is a decent selection of choice but not too large to daunt the newbie trader when first starting out. The Forex market is the biggest market in the world with $4 trillion being traded on a daily basis. As a result, currencies tend to have the most liquidity and tend to trend very well and better than any other market. However, once you have mastered the art of trading, the same Smart Money principles that we teach you can be applied to any of the money markets.
Q. Why do 95% fail in trading?
A: This is simply down to poor education. Trading is not a get rich scheme and deserves the time and education like any other industry an individual wants to pursue a career in. For example, poor risk management is the classic trait of the 95% with most risking too much on a single trade or losing profits due to over trading. Emotional trading is another classic trait with most holding onto losing positions in hope of clawing back profits or getting out too early from winning positions in the fear of losing profit. As a result they never bring home the big winners. This is all down to the wrong education.
Q. Is it recommended to have a mentor?
A. It is essential to have a successful mentor to help you reach your goals. It is a well-known fact that 95% people lose their hard earned money within the first year of trading without the proper training. The saying goes “Trading is simple but not easy”. A top Smart Money mentor will guide you on your journey by sharing his knowledge, strategies and principles. This will help you avoid the common mistakes made by the masses who get into trading and end up staring at empty bank accounts. You do not want to reinvent the wheel but learn to get the wheel in motion and make it work for you. This takes time, the right education and the right mentor.
Q. How long does it take to learn to trade?
A. Our mentees are all able to trade with confidence within 3 months. It takes a little longer to really make good returns, and that will vary from person to person and their time commitment. Our most successful students have made good profits within about 6 months, but others have taken longer.
Q. How much money does a person need to start off with in their trading account?
A. A minimum amount is not required but starting with small funds is always a good way to build up your confidence and understanding of trading. £500 to £2000 in a micro account is a good starting point with currencies as this allows you to open trades when you are risking very small amounts. The advantage of this is that the risk of your capital is low but you are able to put into practise the techniques we teach you. We do not recommend using a demo or paper trading account as this eliminates the psychology and attachment to money which is essential to mastering the psychological aspect to trading.
Q. Do you recommend a broker or trading software?
A. We will recommend our choice of brokers once you are on the mentoring course. Our favourite choice, and also amongst our mentees, of charting package is by far eSignal Advanced Get. To learn more and to receive a discount, read more about our software of choice.
Q. Do I have to accept big losses in the beginning?
A. Losses are part and parcel of even Smart Money trading. However, huge losses do not have to be a part of the learning process. We will teach you the art of Smart Money risk management where you will learn to risk small amounts of your own capital and in turn extract huge profits over the long term. A top trader, over time, learns not to fear losers as the winners are huge in comparison.
Q. What is technical analysis and why do we trade using only technicals?
A. Technical analysis is seeking out patterns in price action on charts on a software through the use of various tools. It is a little known fact that human emotions move the market and so these patterns are based on the thought patterns of millions possibly billions of people trying to predict what future price will be. This, to a certain extent, makes price action predictable as these patterns tend to repeat themselves over the long term. Understanding how to repeatedly capture and trade these patterns before they have happened through the use of technical analysis is where the Smart Money private traders excel and make monetary gains in abundance.
Now, some of the time the response is not predicted. It might be a slight variation or it could be something totally unexpected. It’s important to understand that the markets can be unpredictable, too, and to take care of our money so it is not overly exposed to unforeseen events. As part of our course we teach money management so you are never ever over-exposed to unpredictable events.
Q. What are fundamentals and do we use them to trade?
Some traders use fundamentals to trade the markets based on news such as economics, debts, earnings, cash flow, inflation, interest rates & GDP growth. By the time fundamentals filter out to private traders such as ourselves, it has already been traded on by the top institutions. It usually has little baring on the long term trend. Hence, private traders do not need to concern themselves with fundamentals when opening up positions.
Q. What are the pros & cons of spread betting against CFD (contract for difference)?
A. The Pros and Cons are determined on tax laws depending on which country you come from. CFDs can be bought anywhere however you have to pay capital gains tax on any profit you make. If you are in the U.K. you can open up a spread betting account and no tax has to be paid on any profit you make.