Your mind must’ve stumbled across a thought while trading or observing the financial market ‘How the hell do professionals do it’.
It can be frustrating when trading sometimes, regardless of what strategy you use the market will never always generate those sort of ‘strategy clues’ that could help you execute your next trade and this in fact can go on for a few days. So what is this classified super secret trading style that professionals follow?
The answer is, there isn’t a super secret way of trading! There’s a big difference in the trading style of the amateurs and the professionals. The amateurs are always chasing the market, observing the market, looking for trades and and just looking for a way to become a millionaire over night, whilst the professional trader knows that this is impossible, chase the market and you’ll never catch the market.
A typical day of a traders life is really different to how you think it is, from a fixed sleeping routine to a fixed waking up routine, they don’t chase the market but in fact allow the market to reach them, the amateurs and inexperienced are racing towards the market, on the other hand the professional remains calm and only trades what he sees, instead of what he thinks following the discipline and routine of their trading style, because they know there’s no need to chase the market.
When a professional trader enters a trade it’s placed based on a plan of theirs and hence once in a trade they don’t observe the market or how much they’re up by or down as the professionals trust their trade plans and trade executions. On the other hand the amateurs tend to worry about the trades their in, always switching to their trading platform to see how much they’re up by or down by and that’s because they don’t have a trade plan so the frustration kicks in and this is where a lot of the new traders go wrong.
Lucky for you, you’re reading this post where i’ll explain a few stuff that professional traders do and respect and how you can revolve your trading methodologies around this to help you become a better trader.
Trade Planning
Professional traders always plan their trades based on their solid foundation and understanding that the market can never be accurately predicated, and hence if their plan A doesn’t go according to play then plan B must be executed. Your plan B could be your risk management, how much are you looking to risk? what readings is the market giving you to help you identify whether this is a suitable trade to take, or whether it’s a trade that could be in your favour then turn against you, what’s your next action of play. Professional traders have the answers to all their questions and this is a foundation skill that must be built by focusing on the three things i’m about to list below.}
1. Managing Capital
Managing Capital is the most important factor when it comes to trading, there’s a saying ‘We’re Risk Managers Before We’re Traders’and that’s because without a solid risk management you’ll find that your account will end up being empty and find yourself in a situation where you blame the Forex market when in fact it’s your fault for not managing your risk as a proper trader You should understand that you need a risk management because the market can never play in your favour and if you’re losing a lot of money in trading then most likely you’re not managing your risk properly.
2. Strategy
A professional trader understands that sticking to the rule book of your strategy falls under one of the most important categories to being a successful trader, and that’s because if you’re not trading based on your strategy then you’re simply just gambling in the financial market, and that gambling is gonna be your reason to failing in the financial market.
You must be 100% confident with your trading strategy other the anxiety and frustration kicks in because you literally don’t know why you entered the market and what the market is doing. Another major mistake amateur traders do is switch from strategy to strategy, you should always stick to one strategy you prefer, over here at KispaFX we trade using purely price action and price action signals and that’s our strategy, now it’s all about mastering that strategy and make it work on your favour.
You need to understand that it doesn’t matter what strategy you have, you won’t always win your trades and no strategy exists out there that guarantees you win after win, that’s why you must perfect your strategy by back testing to improve your trade executions and decision makings, it’s all about memorising those historical price patterns and comparing them with your strategy and present market action.
3. Mindset (Traders Psychology)
Developing a traders psychological mindset is a requirement to become a professional trader. It’s something you must work on and improve as it doesn’t just ‘happen’ and it doesn’t come from experience and just trading. It all begins with you educating yourself on what these emotional traits are and being honest with yourself and relating them to your own self and over coming them and even learning why you make them, then come to action that you need to over come them and get rid of them forever as it will effect your career as a professional trader.
Some of these emotional triggers are greed, or revenge trading after having a loss, and even over trading after making money which could lead to gambling, or being afraid to enter a trade and not having trust in your strategy. These are just a few to mention, but work on finding out what emotions trigger when trading and be completely honest to yourself if it worked in your favour, and if it didn’t how can you overcome that.
