The only deal worth pursuing imo is a profit split deal. A mentor who just wants to take cash up front probably doesn't have the confidence in his system. Something like this: New guy puts up the cash and takes all the risk. Mentor teaches him his system and gets a 50% cut until the trainee makes his first $100k, then 10% thereafter. If the trainer won't agree to something similar you have to ask why. If after a pre-determined period of time the new guy just can't get it, then the deal's off. The mentor risks his time so he'd want to be very selective in who he takes on. Would have to be someone he thinks has what it takes.
How's about... 5. Shorting in front of resistance 6. Buying in front of support 7. Shorting into support breaking 8. Buying into resistance cracking 9. Hearing good news pressing market buy a gazillion shares 10. Hearing bad news pressing market sell a gazillion shares .... if I were going to be more specific I could come up with probably 20 more, totally separate setups.... no matter how you crack it, daytrading just ain't "that" simple... it doesn't all come down to 4 setups, at least not for us LII box traders.
I would consider #5 and #6 to be range trading. You're trading a consolidation range for scalps. I'll trade these setups if I'm bored but my bread and butter moves are the breakouts/breakdowns. #7 is the same as #3 (breakdown from consolidation) and #8 is the same as #1 (breakout from consolidation). You're just getting in early in the move. #9 and #10 is just gambling. A good trader knows you should buy the rumor and sell the news. Amateurs mistakenly believe that good news should cause a stock to rise and bad news should cause a stock to fall. The pros know better!
That is managing someone else money. You might as well let the "Mentor" trade the account. The problem you run into is that the person being mentored may not take all the trades, may not follow the system, probably won't trust the "Mentor" after a drawdown and won't be able to pull the trigger.
I'd charge say 50.00 a week, which is reasonable. A real true mentor will teach his system for free, and heres proof!. This guy has taught many people his system free of charge http://www.forexfactory.com/showthread.php?t=50767
<i>"The problem you run into is that the person being mentored may not take all the trades, may not follow the system, probably won't trust the "Mentor" after a drawdown and won't be able to pull the trigger."</i> 1,000% true. Teaching anyone a "system", aka designation of what constitutes entry, management and exit defined strictly or loose is one small part of the learning curve. The process (never event) of that student learning to manage their mental = emotional balance is the greater part of a learning curve. Let's say day one of Lescor's system training with live money is a total puke drawdown, once a year occurence. How fast would the new student recover from that outlier mentally and emotionally? Lescor did everything possible on his end. Random fate when live money begins changes everything. The most important day to any new student will always be the existing day. Never mind what track records show... what happened today? How can we curve fit that into success without loss? Etc. imo anyone interested in profit share is willingly entering a legal partnership. Anyone who's been involved in legal partnerships know exactly how that arrangement too-often ends. No freakin' thank you, ever again for me. Been there, been burnt to a crisp more than enough times. * Hey, anyone can learn thru trial & error, school of hard knocks, fiddling around, etc. Give it enough time, scrape together enough tidbits and something will eventually click. Usually several blown-out account balances later, if the newbie survives thru it all fiscally and emotionally. Free mentors in trading are as common as free mentors are in golf, weight loss, weight training, race car driving, etc x infinity. I'm sure all of those other professions are filled with successful people anxious to donate all of their time, free of charge forever. Why wouldn't they?
this game can't be taught by someone...it can only be learned through going through the cycle of pain....Think about how many different ways there is to make money in this game and yet 2 people with the same edge/strategy/holy grail can have such different outcomes..... the learning curve can most definitely be shortened, but only you can prevent a forrest fire.....
It's a catch 22. The really good traders have a lot of money already. You offering them 50 bucks or 1000 bucks, etc is not going to motivate them to give you anything substantial. Something substantial, like teaching a career, requires a lot of time of the mentor. If he is well off, his time is worth something, probably a lot more than your average beginner could afford to pay. These guys charging $25,000 a week to sit with them is a joke because you will only absorb a tiny percentage of what you see in a week. A worthwhile relationship will last many months or years. It takes that long, even with a dedicated mentor. Some people will dedicate the required time for free, just because they're nice and maybe they enjoy someone else's company, but those are rare finds. Take the offer if you ever get one of those. Btw, I'm talking about true mentorship, which is teaching all the nuances and details that go into being a successful full time trader. If you are buying a moving average crossover system, they yeah, don't pay more than 50 bucks for it.
Here we go with this stupid shit again. Yes, you can find a mentor who can teach you how to trade profitably. No, your probably not going to find any legit person to sell you or teach you a mechanical system.
what happens when they lose their first 100k?? unless you have inside info I wouldnt give up 50% of my profit for nothing in the world.....10% all day peace