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Many retailers believe that three things are simply not true about professional forex traders. First, they assume that almost every trade a professional forex trader chooses is a winner. Second, they assume that it takes a lot of money to become a professional forex trader. After all, they assume that professional retailers are secretly doing something retailers cannot.
Neither of these assumptions is true and we keep seeing that it’s not the number of winning trades he can choose, how much trading capital he has, or privileged access to contracts that make the difference – that’s professional currency Traders behave.
1. Professional forex traders are NOT geniuses
They are neither smarter than retailers nor are they able to predict the market in forex trading with 100% accuracy. This is because most professional forex traders, as well as most retailers, have no idea where the market is next. Most retailers mistakenly believe that professional forex traders know where the market is going and the answer is NO, they don’t! A professional forex trader knows that putting an opinion on the market is dangerous. In the end, the market is always right.
A trader who forms an opinion about the market gains only one thing – a warm sense of the truth – while overlooking the fact that trading success depends on managing the trade yourself. Constantly insisting that you must be right on every trade you choose is a common mistake retailers make. The approach of correctly determining the direction of the market, rather than being profitable, rarely leads to success.
In reality, on the contrary, it places the trader against the system with which he wants to make money. The constant struggle eventually tarnished the trader’s judgment, causing him to treat the market as an enemy to fight as opposed to an ally with whom he shared the opportunity. Professional traders can find themselves on the wrong side of the trade and also focus on getting the market right instead of being profitable.
2. Choose to be profitable than to be right
A trader who forms an opinion about the market will defend his losses and still think he is right. Traders who do this think they are smarter than the market and can beat the market. The fact is, the market is always right! Throughout the school we are rewarded for the correct answer, whether it is multiple choice or free answer, as long as we have the correct answer we get an A.
This behavior leads to the need to be right in the market, otherwise the trader’s ego will be beaten. Adding more contracts to a losing position, known as averaging, is a strategy most amateur traders typically use to prove they are right about the market. However, the descending average in a bear market is behavior that is doomed to fail.
The decision to be profitable rather than right can lead a trader to make different decisions about how he or she will interact with his or her market. By making a decision to make a profit, plans are forged to protect him from a potential trade – a loss – and to ensure that his investment account lives in another so he can participate in the next market opportunity. Trading to control losses is the most likely outcome and let the profits take care of themselves.
3. Trading with the right amount of capital
Trading currencies with a leverage of 500: 1 is too high a leverage even for professional forex traders. This goes well beyond what the average retailer should do to get started. This high leverage is a major contributor to the rapid demise of retailers. There is no exact leverage for retailers, but it is recommended that you trade 50: 1 or 100: 1 leverage first with an initial capital of $ 20,000. When your starting capital is less than $ 20,000.
You have no choice but to use more leverage – increasing your chances of losing money quickly. Understanding and managing the balance of risk and leverage is what professional forex traders do. Retailers should understand leverage and employ risk management and money management strategies to limit their risk exposure while using the right leverage to improve your trading performance.
Becoming a professional forex trader is trusted In many people, and most of the time, it is only from day one that you begin to believe that you can become a professional forex trader. Almost 90% of part-time traders want to become full-time professional forex traders in the future. Professional forex traders are no different from retailers. Whatever we think of her is wrong.
You don’t have the ability to read the market. You are not always right either. They make mistakes from time to time and their trading accounts also experience withdrawals. However, they have a different mindset and therefore act differently from retailers. With the use of technology, the right knowledge, and the right amount of practice; A retailer can become a professional trader because it is no different from them. Your little one can be successful!
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Warren Seah
“Introducing 11 Exit Strategies Every Disciplined Trader Needs … Without them, you could be a PIP victim, just like thousands of traders out there.”