If you want to become one of the most successful and professional Forex traders, the quickest way is to follow (imitate) successful ones.
Learning from successful people is always one of the best ways for you to progress in all areas of your life. More specifically with the trading industry, this is where no one will teach you but yourself.
We don’t have a transactional course at the university. In seminars or courses out there, they will also only give you very basic things. No matter how much money you pay, you still have to learn for yourself through the failures and successes in the market.
Paying attention and following successful Forex traders can save you a lot of time (maybe years) on the way to finding success. We need to find out what helps them succeed and earn a lot of money while people are constantly losing money, etc. In today’s article, we will find out and discuss this issue.
Register an Exness account NowGet $1,000 Free for beginners
Pro Forex traders always have plan and get prepared in advance
Most traders get bogged down when they don’t think they need to actively calculate the trades in advance. They think they just need to turn on the computer and trade right away without much calculation and data. Unfortunately, this is not a proper trading mindset.
Professional Forex traders always know what their trading strategy/system is exactly before they execute any order on the market. Remember the time when you decided to switch to live trading from a demo account, did you still not have a strategy for yourself? Or if you have learned the strategy from someone else, you did not really understand it, did you?
I am that person who traded “promiscuously” but won big with a demo account. I decided to trade with real money and lost a lot. After that, I stopped for a while to concentrate on studying the strategy before continuing trading.
Professionals know what signals are needed to place orders. They know what the market they are in is, know the amount of acceptable risk for each order, know how to manage capital, etc.
Without thorough preparation before entering the market, our minds will surely be distracted by all its “dreamy magic”. And accordingly, the coins in our pocket will keep on leaving.
If you enter the market like that, you put yourself in a state of crazy trading. You set the risk too high for your account balance and do not know how to manage orders properly. Taming the disturbing mind is possible only by preparing the knowledge as fully as possible. You need to understand them, always have a plan before you intend to do anything in the market, and try to maintain the discipline to implement them.
The discipline of steel
How do you consistently remain prepared in advance?
Professional Forex traders understand that discipline is the “glue” that helps you stick with your trading strategy. If you have ever been involved in trading (foreign exchange and securities), you probably know that staying disciplined is extremely difficult. The discipline of a successful trader is steel discipline. It is something that ordinary people are hard to get.
Pro traders understand that everything in their power must remain disciplined. Maintaining discipline in trading is like growing up from a boy to a man.
You must stay disciplined to trade if the market is in line with your strategy, regardless of whether the order would win or lose. You must stay disciplined to keep a fixed amount of risk for each trade. Do not increase or decrease whether your previous order is a losing or winning order.
And you must stay disciplined so as not to look at your order position 1000 times a day, or wake up in the night to turn on the tablet and observe the order, etc.
If you have a good trading strategy, you need time to prove they are effective or not, To do that, you have to stay disciplined for a sufficiently large number of orders. Most people, sadly, cannot make it. It is also one of the main reasons why they fail and leave the market.
To become one in 10% of these meager successful Forex traders, you need to “dig” deeper. You need to go out of the “box”, outside your “safe zone”. You need to “dig” deeper than all the other dreamers out there who are burning their money in the market.
When you enter this forex “arena”, you are fighting in an endless place of temptation. Cheats and tricks make you financially and emotionally damaging (I am not exaggerating). Practice yourself to have steel discipline and take advantage of the opportunities that the market offers.
Understand mathematics
I was a person who hated studying math when I was a student. My math score was very low. On the contrary, my literature score was extremely high which stayed on top of my school. It is true that “you will always get what you hate”. My work and many passions are related to these numbers.
Professional traders understand the mathematical aspect behind the success of their Forex trading career. And this is also a key reason to help them maintain discipline. As I have said, success in trading is about probability, not 100% certainty. We cannot know for certain which order will win. We only know that the order has a high probability of winning, so we place it.
Trading is a “game” of probability. And unless you fully believe this and always think about probability when trading, you will not become successful.
Let me give you an example. You know that your strategy yields a 50% win rate. This means that you expect to win at half of the orders, and the same goes for the losing orders. However, the important thing is you can not know which one will be winning or losing. If your latest order is a losing order, it doesn’t mean your next order will be a winning one.
When you flip a coin on the table, it will most likely show the same face for 10 or 20 times in a row. But if you keep flipping for long enough, we still have the ratio of 50-50 heads and tails.
In trading, you need to completely forget the results of previous orders. What’s been done is done. They have nothing to do with the present. You must not let them influence you. This is basically what you should think about probability.
You need to focus on the outcome of a sequence of trading orders, not the results of several orders. In other words, you need to focus on long-term results. This is what the pros focus on.
Newcomers, by contrast, often focus their attention on the nearest order. They let it affect their emotions (for example, if the previous order wins, this time they will increase the bet hoping to earn money). And sadly, this is why they fail.
Understand the market sentiment and its participants
They understand what others (the majority, the underdogs) often think and act in the market, and then do the opposite. The market is designed to deceive the crowd and to sweep away the “noobs” before it changes direction. Professional traders know and understand this. They take advantage of it to make a profit.
The important thing I need you to remember is that professionals are always aware of their own psychology when trading. They constantly control themselves to follow the outlined plan. They think and act in a logical and objective manner to minimize the effect of emotion. If you do not do so, you will easily lose discipline, follow your emotions, and give away your money to the market.
Pro Forex traders do not try to avoid losing orders
They do not avoid losing orders and take them for granted. The ability to understand that a losing order is an integral part of the job is something that every professional has.
New traders are trying their best to avoid losing orders. They do not accept losing orders and do not set a stop-loss. They average the price and hope to find a common break-even point, etc. As a result, accounts after accounts go blank forever.
What they do not understand is: when you become a trader, you can never avoid unprofitable trades. They always happen in varied ways. The more you try to avoid, the bigger losses you will receive which may result in a dead account.
Therefore, the best thing is that you learn to control your losing orders. You must understand them as “costs” for running your business. The sooner you accept this fact, the sooner you make your first profitable coins and become a “steel” trader.
Professional traders know what they are doing because they always learn by their trades. You don’t need to go to university to become a professional trader. There are many such people out there who quit or never go to college. What I am talking about here is that you need to be proactive in self-study. You need to learn and read from reliable and reputable sources
In short
This article stops here. Hopefully, with the above suggestions, you will find yourself the fastest, most effective, and appropriate way to learn. If you have any comments, please take a moment to raise your opinion in the comment section below.
Register an Exness account NowGet $1,000 Free for beginners
The post 5 Things Professional Forex Traders Have But You Don’t appeared first on How To Trade Blog.
source https://howtotradeblog.com/5-things-pro-forex-traders-have/
No comments:
Post a Comment