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Three differences between professional and "average" trader
Which people achieve consistent profitability trading the currency markets? How do they do it? And who will lose and why they lose? The answer to these questions is fundamentally important in order to evaluate and improve our own trade, and, ultimately, become a successful trader.

Forex attracts a variety of people: those who are trying to make quick money, and misled investors, and uneducated newcomers, "players", and many others. But, in addition to representatives of these groups, which are, without a doubt, a significant part of all traders, there is another group of individuals make a living trading on the currency market. They are undoubtedly professionals in this field. So who are these people and how they do it? They just distinguish some features obtained in rezultatov or proper training, which allow them to succeed. But these qualities are completely absent from the "average" trader

1. Information

They are well informed: they know the markets you are trading in, know what information, technical or fundamental, should be used as and when. To be a surgeon, You must learn and practice in this area to be a lawyer, You should at least familiar with the laws, so why this rule should not work for currency traders? To trade in the market, the necessary information, both technical and fundamental, and most important, You must know how to use it. Profesjonelle is based on experience and/or significant verification, and professionals know how to use the information they collect.

2. Mentality

They sell rationally, not based on emotion. Emotions play a very minor role in their daily trade as professionals know that "emotional" trading is the quickest and most sure way to lose money in the market. On the other hand, the "average" trader often allows himself the luxury, as the manifestation of emotions:

• Fear of loss in the case when prices have moved too far against the agreement, and refusal to close a losing trade or set level limit losses;

• Fear of losing the opportunity, enter a trade when the market has already "passed" most of the traffic

• Greed, refusal to close a winning trade in an attempt to get all possible income;

• Impatience, unwillingness to wait for a good moment, but instead the desire to profit immediately.

These are some of the ways that our brain provokes us to error, and the markets with their continuous variability, are constantly evoke similar emotions for the inexperienced traders.

3. Market prospects

Professionals know about what others are doing traders: trade is not only a consideration of new data and the adoption of the decisions on the transaction. You can't expect that, looking only at your favorite indicators or evaluating the fundamental data, You will know whether the market will rise or fall – Your analysis must be confirmed by the movement of the market, prices and volumes, which will tell You that there are other traders (and large) with the same Outlook and mood. Of course, we are not talking here about the actions of "average" traders – their solution is too"scattered", they were often wrong, and their capital is insufficient to cause some significant movement, we are talking about large financial institutions and funds (market-makers). Currency may be substantially undervalued, assuming the difference in interest rates and export forecasts. But in the end, it is supply and demand any control the market, and if other major players do not adhere to the same opinion as You, as before, is bearish on the market, then the currency will rise in the near future, and thus, You should expect drastic changes in market conditions.

Category: Forex | Added by: (29.10.2017)
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