“As a trading mentor, I always say that I am like a bridge, so those looking to become successful traders can learn and perhaps avoid some of the mistakes I made when I first started trading.” Becoming a professional trader didn't happen overnight for Dennis Okari – a now sought-after trading mentor Exness Pro Team Member.
Dennis shares the 'expensive lessons' he learned during his trading journey – valuable lessons he now shares through online or face-to-face classes. Beginning Kenyan traders, as well as other nationalities who attend Dennis's online classes, can avoid similar mistakes and accelerate their trading acumen because of the “price” Dennis paid when he was starting out.
“When I started, there were many things I lacked that caused me to make costly mistakes,” Dennis says. “I lacked mentoring from legitimate resources, networking because there were no trading communities at the time, motivational support, and help developing my trading skills – these are the pillars on which I built my trading mentorship program.”
Expensive and valuable lessons in trading
So, what are those costly mistakes and valuable lessons that every trader should know and apply to their own trading strategy?
Lesson #1: Do your due diligence
In his first cautionary tale, Dennis discusses the importance of doing due diligence when starting to trade financial instruments as a novice trader.
“When I started, there were so-called experts pitching their money and talking about quick profits. I trusted and believed everything I heard. I didn't ask a lot of questions, and part of the reason I couldn't ask them was because I didn't know what questions to ask.” It had to be asked, and it was also difficult to find a reliable source of proper market analysis (technical analysis and fundamental analysis) and good experts who could analyze the financial markets and help me build a good market trading strategy,” shares Denis.
This lack of due diligence led to a significant loss for Dennis when he deposited funds with a broker that was eventually shut down by local authorities, leaving Dennis with no recourse and his funds locked up. This experience highlighted the difficulty of finding reliable information and the challenges of navigating a new regulatory environment during the Internet boom.
Okari stresses that new traders should look for brokers that have a good reputation as well as regulation. He highlights the importance of being critical and curious, and that understanding the signs of a trustworthy broker is vital. Now, taking a more cautious and informed approach, Dennis considers regulation and reputation to be inseparable when choosing a broker. This lesson is a vital reminder for newcomers: thorough research and healthy skepticism are crucial to protecting yourself during market volatility.
Lesson #1 Key Takeaways:
- Get knowledge from legitimate experts, professional traders and resources.
- As a trader, gain a comprehensive understanding of how the industry works.
- Look for reputation as well as regulation when choosing a broker.
- Maintain a healthy level of skepticism to avoid falling for unreliable sources.
- Always know the right questions to ask and where to find solutions in case of disputes.
Lesson No. 2: Apply sound money management and risk mitigation
Part of a risk management strategy is understanding trading psychology, your emotions, leverage, and margin trading; When you lose money, don't blame, go back and see what went wrong and what you could/should have done differently.
“I didn't understand leverage and margin,” says Dennis. “So, the first time I tried trading with leverage, I took $1,000 of my profits, and lost it within four minutes.” “They say never trade money you don't want to lose, and I was prepared to lose it, but it still hurt. I stayed off my trading platform for a few weeks after that.”
Dennis then started blaming the system and the broker. “I didn't have the proper understanding, so I blamed the broker and said, 'These people behind this machine can see what I'm doing, and they're manipulating, and this is how I lost..' But that's because I didn't know what I was doing. “I don't understand how margin and leverage work.”
This costly lesson taught Dennis the first rule of trading, which is to protect your capital.
“When I sat down to study and understand how margin positioning, leverage and lot size worked, it started to make sense to me because I was doing things very foolishly. I was extending leverage, and at the time, I was dealing with a very bad broker, so there was no mercy.” .
“I needed to become a 'consistent trader', which didn't necessarily mean I wouldn't lose trades and money occasionally, but it did mean that my gains would outweigh my losses.”
How can someone achieve this?
By learning proper risk management, understanding trading sentiment, analyzing market conditions, and dealing with the market with a lot of sobriety.
“I share what I'm willing to lose, and if something goes against me, I'm now able to go back and question and see where I went wrong.”
Key Lessons #2:
- Get a clear understanding of leverage and margin and how they work.
- Control a trader's emotions and be responsible. Avoid the blame game when losses occur.
- Your first goal should be to protect your trading capital.
- Aim to become a consistent trader with a well-defined trading plan, trading strategy and risk management.
Lesson No. 3: Choosing the right broker
“One of the biggest mistakes I made was choosing the wrong broker – an illegitimate, unregulated broker.”
Trading with a reliable broker is important because, as Dennis explains, when you open a trading account with a broker, you are entering into a partnership with them. When you put your finances into a “partnership,” you have to trust what they are doing on the other end.
It is also important to have people you trust and rely on for their opinions and experience in trading with various brokers, who can provide trading insights and tips and guide you to choose wisely.
As a member of the Exness Team Pro, Okari suggests that his students test Exness as a broker and compare them. “I have had instances where people have contacted me and expressed their confidence in Exness, attributing it to my influence.”
Dennis recommends that novice traders look for reliable infrastructure and systems, fast execution, and fast and smooth withdrawals when choosing a broker.
“Having the opportunity to choose from different trading account types and trade Forex CFDs with no interest or commissions, as well as low and tight spreads, is great for me as a trader,” says Okari.
Lesson #3 Key Takeaways:
- Prioritize choosing a regulated and trustworthy broker to ensure a safe investment partnership.
- Seek investment advice from qualified and experienced traders to help you choose the right broker.
- Rate brokers based on the reliability of their infrastructure, speed of trade execution, and ease of withdrawals.
- Look for brokers that offer a variety of account types and trading conditions, such as no swaps or commissions.
About Dennis Okari and Exness Team Pro
Dennis Okari stands out as a key member of Exness Pro Team, a group of accomplished and successful traders who are passionate about sharing their knowledge and experience. With two decades of journalism under his belt, Dennis brings a unique perspective to trading, carefully analyzing the way global events shape financial markets.
The eight years he spent in trading not only honed his skills but also turned him into a leader, especially in mentoring novice traders, providing quality education, and maintaining the highest standards of integrity. Thanks to the excellent trading conditions offered by Exness, Dennis is dedicated to helping others develop and hone their trading skills and achieve lasting success in the financial markets.
“My satisfaction in life would be to see so many traders, thousands of people, benefit from my experience, what I've been through, what I've learned, and become financially independent professional traders themselves.” – Dennis Okari