How Professional Traders Trade

When Professional Trader is mentioned, what comes in the mind is how they became professional, what they do to be professionals; do they go through a special kind of training different from the regular training? Are their market hours different from others? Do they use different Forex strategies when trading? This and many more are questions raised when professional traders are mentioned.

To be a professional trader in Forex, it takes sometimes but with regular training, you will upgrade from newbie to a professional. 

In this article is a detailed and analytical explanation on how the professional traders trade, but first you should know this about a professional trader:

have sound Method to trade only when markets are trending and avoid corrective phases of the market like cancer;

have sound Money Management policy;

have sound Mind Management;

have some decent initial capital to trade with;

treat trading as serious business and not just by the way time pass or hobby or as a side income source.

They invest time, effort, energy into it like you would into any business where you want to succeed.

The professional traders who have been in the business have some Forex strategies they use in trading: They are:

1. Professional traders trade what they see and not on prediction: They are aware that prediction does not work in trading in Forex. They use their experience to analyze the market. They do not get attached to a trend which once worked for them. Successful forex traders know exactly what they want and they only trade when a real opportunity pops up.

2. Available Capital: Professional traders only trade with available money. They also trade with money they can afford to lose. If at the end of the day, they lost the capital to trading, they won’t get attached emotionally or financially.

3. They update their trading plan – Professional traders update their trading plan either weekly or monthly. This allows them to add new ideas to the plan.

4. They don’t rely on trading software:  To professional traders, trading software is a cheat. They rely on their brains. They believe that trading software is not flexible enough because they do the same thing every time. Moreover, to use trading software, you have to get the newly updated version of it.

5. Trading is not about win-win for them: In forex trading, a professional trader doesn’t feel pressurized to win always. They are not emotionally attached to the capital they put in the trading. This is to allow them to avoid making mistakes in the trading.

6. Taking losses personally

The professional trader lives by the following two principles:

– One trade is just one trade and the outcome of one single trade does not matter
– The stop loss order is the price where you fully accept that your trade idea was wrong and where you WANT to exit the market.

The professional trader knows that the outcome of one trade is totally irrelevant to his trading career. Whether a single trade is a winner or a loser does not matter because there will be 400, 500 or 800 trades coming soon where he can make money. A professional trader also accepts that a stop loss is the place where his trade is wrong and that he is happy to exit the trade because it is not going to make him money.

7. They are cautious of warning signs: Traders don’t ignore the warning signs of technical warnings. This allows them to hope and replace thoughtful discipline.

Professional Traders are also cautious of when to trade. The trading time/days is very important to them.

According to professional traders, the following days are market hours:

Sundays: everyone is sleeping or enjoying their weekend!

Tuesdays and Wednesdays: Peak trades occur between these two days. 

Fridays: Holidays – everybody is taking a break.

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