Business

Why Every Investor Should Have a Mentor

The wealth of information that exists about stock trading is abundant – so abundant that it can be intimidating to enter the space. However, having a mentor experienced in the art of stock trading can make the transition much easier.

No one knows everything, and there are many investment principles that deal with emotions, not just numbers and hard data. It’s for this reason that finding an experienced investor as a mentor can be extremely helpful.

“Start early. If you don’t know the power of compounding returns, learn it, because it will make you excited about your future,” said Tara Unverzagt, CFP and founder of South Bay Financial Partners in an interview with nerdwallet.com.

Finding a suitable mentor should involve finding someone you respect personally and financially. Ideally, they’re also someone with a good deal of experience under the belt.

The goal is to find someone who has experienced multiple swings in the market, who has seen the coming and going of “hot stocks” and has seen the benefits of steady investing over the long term. Having insights into the market takes years to learn, so finding someone with experience can share their collective knowledge.

Matt Choi, the founder of Certus Trading, offers trading mastery through simple, easy-to-execute strategies to allow for sustainable, long-term profits. Choi says he owes his understanding and development as a trader to his own mentor.

“When I was starting out, I had the privilege of a mentor’s guidance helping me along my journey,” Choi noted in his blog.  “George Fontanills taught me everything there is to know about trading strategies, but much more importantly, he helped me discover who I am as a trader.”

An investing mentor will be able to answer any questions about the intricacies of investing. They can help you understand multiple trading philosophies and navigate the ever-shifting markets. Just like a business mentor, would help you create a vision and goals for your startup, an investing mentor will help you develop your own individual investing philosophy.

This philosophy should include specific investing goals, such as how you plan to invest, the frequency you plan to invest, what investment vehicles you prefer, and how your investment strategy will change over time. This mentorship shouldn’t be a one-time consultation, the goal is to develop a long-term relationship with your mentor that will provide you with years of benefit.

Today, Choi teaches his own students his trading methods through his company, Certus Trading. According to Choi, he began Certus Trading to help people achieve their dreams of being more knowledgeable traders.

“I teach traders how to find high probability trade setups using fixed parameters. What this means is that if the stock is showing A, B, and C, then it is a buy. Or if the stock is showing X, Y, Z, then it is a sell,” Choi explained in an interview with neoadvisor.com. “And the best part is, we can program the A, B, Cs, and the X, Y, Zs in trading platforms, and it literally takes seconds to identify trade opportunities based on a set of fixed criteria.”