Maximize Your Earning

8 Reasons Why Professional Traders Can Make Consistent Profits

  • Bagikan
professional traders | 5 Reasons Why Professional Traders Can Make Consistent Profits

Many forex traders think that getting a consistent profit in trading is hard to achieve painstakingly and is more of a coincidence.

Struggling can mean trying over and over again to find methods and strategies that work with trial and error or trying out several trading software packages and robots.

Even so, many of them failed to make consistent profits. On the other hand, professional traders who seem to trade casually and without burden actually generate profits consistently. Is there something wrong?

Actually, many traders already know how to make a consistent profit, but they don’t apply this knowledge proportionally and precisely.
For example, about the target focus.

The motivation of professional traders is focused on getting results in the long term, while traders are generally motivated to get results as quickly as possible in the short term. Perhaps, for this reason, professional traders seem relaxed and carefree.

Related : Success in Forex Trading, Here are 5 Tips for Beginner Traders

5 Reasons Why Professional Traders Can Make Consistent Profits

Apart from focusing on long-term results as the main reason, it helps us to know some of the reasons that make professional traders can consistently make profits.

1. Professional Traders Don’t Spend A Lot of Time on Market Analysis.

Maybe you think that you spend less time exploring economic news that affects the market so that you are always slow to anticipate the direction of price movements? Therefore, whether we realize it or not, many of us have spent more time than professional traders to gather data from various news sources.

Professional traders do this too, but only at certain times. What is important for them is to find signals for trading. Finding the signal includes whether or not it is feasible to open a position, close a position, or add a new position to the current market conditions.

2. Professional Traders Always Trade Based on What They See, not What They Think Will Happen.

Professional traders trade on an objective, not a rumor-based basis. Many traders are tempted to predict what will happen in the market after reading and analyzing the development of economic news.

This often makes traders feel very optimistic and violates risk management strategies by, for example, doubling the trading lot size, or adding new positions to over-trading.

On the other hand, professional traders know that they will never know for sure where the market is going, no matter how clear the clues from the economic news are. In this case, of course, they learn from experience.

Therefore, they are very adherent to risk management that has been determined by themselves. All news is always combined with decent trading signals.

They don’t push themselves or set targets for “got to market”. Professional traders know exactly what they want from the market, and will only trade if the market has given them an opportunity.

3. Professional Traders Do not Rely too Much on Technical Indicators.

Many forex traders actually realize that the many indicators on the trading chart will make you confused and tend to be overanalyzing, but they still do it.

According to the narrative of a professional trader, the first time they see on a trading chart is to read the price movement as it is, by only marking the support and resistance levels.

Most of them are able to read price movements “naked” (naked price), or trade without indicators. This does not mean that they completely ignore technical indicators, but only use them proportionally as needed.

Usually, the indicator that is often used is a moving average as dynamic support or dynamic resistance level. They don’t rely too much on technical indicators to get the “holy grail” that is always right in their trading system.

They know that most technical indicators are formed after a price movement (lagging). Their holy grail is the risk/reward ratio.

4. Professional Traders Do not Depend on Trading Software and Robots.

Although on the market there are many trading software offers and forex robots whose names are sometimes quite bombastic, it is very rare for professional traders to use them. They believe more in their own thoughts and analysis.

Trading software, like any other software, contains programs that perform the same commands over and over again.

In fact, market movements are very dynamic and it is unlikely that the same situation will repeat itself repeatedly. In certain circumstances, the program may work as expected, but it does not guarantee that it will always work well in market movements that tend to be random (random) and are full of emotional influences from the perpetrators.

For professional traders, to predict dynamic and random market price movements, objective reasoning is the best trading tool.

6. Professional Traders Don’t Really Focus on Fundamental Factors.

Of course, fundamental factors cannot be ignored, they can even be said to be the main movers of the market. Professional traders use fundamental analysis as confirmation of what they see on the chart when trading.

However, they do know that the influence of fundamental factors on price movements is not always certain. Many other factors influence the market.

The release of increasing GDP data, for example, does not just make a country’s currency strengthen immediately. There are many other factors that influence it, including the emotions of market participants.

7. Professional Traders Believe More in Themselves, Not in Experts.

There are traders who open trading positions because they hear or read comments of an expert from the media about something that is considered important.

After a while, other experts gave conflicting opinions for various reasons. The trader becomes worried about his position, leaves, or continues?

Professional traders always make their own trading decisions and are hardly swayed by an analyst or expert comments.

They believe in their own way of analysis, in accordance with the trading strategies that have been made, because only they themselves know exactly the state of the account and the portfolio system in trading.

7. Professional Traders are Always Realistic.

You will never become a professional trader if you are not realistic in trading. Being realistic in trading means applying proportional risk management to your account balance.

If your capital was $ 10,000, would you stake the whole (100%) in just one trade? or risk 30% per trade? or 5%? Of course, who knows on your own. If these funds are not idle funds (disposable income), then you will certainly be very careful in determining risks.

Professional traders usually also use a portfolio system based on the diversification of trading instruments on different types of markets. Especially in the forex market, diversification can be done by not only trading one currency pair to reduce possible risks. Diversification is one of the realistic ways of trading.

8. Professional Traders Work According to a Trading Plan and Discipline.

You must have a clear trading plan and be disciplined in order to achieve maximum trading results. The trading plan will also reduce the emotional impact when trading.

In addition, you must also keep a trading journal as feedback to evaluate all trading results. Without evaluation, you will not know the level of progress that has been achieved.

Professional traders have long been carrying out these steps, so they can work with clear targets and careful planning.

Related : How Forex Works – Start to Earn Guide

  • Bagikan

Tinggalkan Balasan

Alamat email Anda tidak akan dipublikasikan. Ruas yang wajib ditandai *