Day trading has become a hot topic lately as online trading and stock trading apps have made it easier for the average person to access and trade in the stock market. While day trading may seem like a great way to earn some additional income or even a potential way to financial independence, it proved to be a perilous venture for most day traders. According to the stock platform eToro 2020 report, 80% of day traders lost money over a year, with a median loss of -36.30%.
With stats like that, it doesn’t come as a surprise that more than 75% of day traders end up quitting within just two years. However, as a professional day trader and highly successful investor, Ultra Calls says that people quit day trading because they try to do everything by themselves. He explains that quitters often don’t have anyone to rely on when things start to go downhill because they forget that one of the key components to success in day trading is having a support network and a good mentor.
“There are three reasons why you should consider the benefits of having a mentor to learn how to trade,” says Ultra Calls. “First, it’s important because it reduces risk by teaching you what to do in certain situations. Second, it also helps you stay disciplined, which is important when trading. Finally, having a mentor who can answer your questions in real-time saves you time and money.”
With that in mind, Ultra Calls founded Sapphire Trading, an online trading chat room through which he and his team of experienced traders offer free coaching services to new traders looking to make a name for themselves in the world of day trading.
For Ultra Calls, having a mentor helped him push through the hard times, which, according to him, happen regularly. He says that mentors who are good at trading will help eliminate false or unsubstantiated beliefs about how markets work. “They can coach your mind so that winning becomes second nature,” Ultra Calls says.
Ultra Calls further explains that a key to finding a good mentor is to look for a person who has the time to answer questions in real-time and is open with their knowledge about markets. “Good day trading mentors are accessible, open with their knowledge about the markets, and they’re willing to work with you until they see results,” Ultra Calls says. “Mentors also need to have a proven trading system, be able to teach it well, and provide you with the necessary training material.”
He adds the best way to find a mentor is to hang around successful traders. “Find someone who has the passion and desire to succeed because that’s what you need,” Ultra Calls says. “Most new traders expect to win by chance, and after a string of consecutive losses, they’re quick to quit. However, if you have a strong mind and strong support that you can rely on in your moments of weakness, you will surely overcome those hard periods and ultimately succeed.”