Many retail traders assume three reasons for professional currency traders which can be not true. First, they believe that virtually every trade that professional currency traders pick is just a winner. Second, they assume that it has a bundle to be always a professional currency trader. Finally, they believe that professional traders are secretly doing something that can’t possibly be achieved by retail traders.

None of these assumptions is correct and actually we see time and time again that it isn’t how many winning trades he can pick, how much trading capital he has, or his privileged use of contracts which makes the difference – it’s the way the professional currency trader behaves.

1. Professional Currency Traders are NOT Geniuses

They are no actual smarter than the usual retail trader nor do they in a position to predict the marketplace with 100% accuracy in forex trading. The reason being most professional currency traders will also be like the majority of retail traders on the market do not know where the marketplace is likely to be next. Most retail traders falsely thought that the professional currency traders know where the marketplace will go and the solution is NO, they don’t! A professional currency trader knows that placing an opinion about the marketplace is a dangerous thing to do. At the end of the afternoon, the marketplace is obviously right.

A trader who forms an opinion about the marketplace gets only 1 thing- that warm fuzzy feeling of being right- while missing the fact the success of a trade comes from the capacity to manage the trade itself. The constant insistence that you should be right about every trade you pick is just a common mistake of retail traders. The method of being right about the marketplace direction over being profitable rarely results in success.

In reality, it does quite the alternative, it pits the trader against ab muscles system he hopes to earn money from. The constant struggle ultimately ends up clouding the trader’s judgment and driving him to treat the marketplace being an adversary that must be battled rather than an ally he is sharing opportunities with. Professional traders can end up on the incorrect side of the trade as well dedicated to getting the marketplace right rather than being profitable.

2. Choosing Being Profitable Over Being Right

A trader who forms an opinion about the marketplace will keep a losing trades and still think that he is right. Traders who trade similar to this thinks they are smarter than the marketplace and they are able to out-beat the market. The truth is the marketplace is obviously right! All throughout school, we are rewarded for picking the proper answer, whether it’s multiple choice or free response, so long as we have the proper answers we will receive a class A.

This behaviour translates into a the need to be right available in the market otherwise the trader’s ego is likely to be for a beating. Adding more contracts to a losing position referred to as averaging down is a strategy usually performed by most amateur traders to proof they are right about market. However, averaging down a bearish market is just a behaviour doomed for failure.

The decision to be profitable over being right can lead a trader into making a different set of choices about how he interacts with he markets. By deciding to be profitable, plans are put in position to guard himself from one trading potential- loss- and to ensure that his investment account live another so he can participate in the next market opportunity. Trading to manage the absolute most probably outcome loss, and letting the earnings look after themselves.

3. Trading With the Right Level of Capital apex trader funding faq

Trading currency with a leverage of 500:1 is too much a leverage even for professional currency traders. This is far beyond what the typical retail trader should really be working together with when he gets started. This high levels of leverage are a leading contributor to a retail trader’s rapid demise. There’s no right amount of leverage for retail currency traders however it’s encouraged that you first trade with 50:1 or 100: 1 leverage with a starting capital of US $ 20,000. If your starting capital is below $20,000.

You have no choice but to use a higher leverage – increasing your chances of losing your money fast. Understanding and manage a balance of risk and leverage is what the professional currency traders do. Retail traders must understand leverage and apply risk management and money management strategies to limit their risk exposure while using the right leverage levels to assist your trading performance.

Being a professional forex trader could be the dream of many and for some it remains just from the afternoon you first start believing you can become a specialist currency trader. Almost 90% of the in your free time traders want to become full time professional currency traders in the future. Professional currency traders aren’t any different from retail traders. What we always looked at them are wrong.

They don’t possessed the capacity to read the market. Neither are they always right most of the time. They made mistakes from time to time and their trading accounts also experience draw-downs. However, they have an alternative mindset and so they act differently from retail traders. With the utilization of technology, right knowledge, and right amount of practise; a retail trader can become a specialist traders because they aren’t any different from them. The Little Guy Can Succeed!