8 Feb, Limassol, AtoZForex - Becoming a Professional Forex trader starts with courage and a winning mindset. That is primary what distinguishes really those loser traders from professional traders. If you have the right mindset, a proactive attitude with positive behavior, and you take the right actions based on your trading strategy, you will obviously be left with winning results and consistency in your performance.
Overall, if you ask traders about their profit factor elements, this is what you would get:
If you look at the above given profit factor elements for Forex traders, amateur would set their priorities as follows:
- Return - they want to get rich as fast as they can;
- Risk - they want to invest as little as they can and not lose a cent;
- Time - they do not want to invest time in their career and look for Forex indicator;
- Reliable Platform - they won't spend time finding a reliable Forex Broker;
- Cost - they are not aware of trading costs;
- Emotions - they are emotionally unfit.
Meanwhile professional Forex traders would prioritize their operations as follows:
As you can see, professional traders look for the KPIs that they can control first, like starting with themselves and keep the Risk Reward Ratio 'til the end.
The reason why we see 95-99% of the retail traders loose in the Forex market, is mostly due to the fact that retail traders focus on money only. While professional traders would put the Risk and Return until the very end. If you take this further to the next level, and make a short questionnaire, you will see that every amateur trader has just one goal!
"I want to be a millionaire!" attitude
Amateur traders, new to Forex will focus on the money. They want to become rich, fast! But the ironic part is that they want to do it with no homework and obviously with $100 - $1000 dollar size accounts.
Emotion comes first!
Let's get one thing straight If you can not control yourself, how will you control a million dollars?
The professional trader mindset is based on the fact that the market cycle is correlated with emotions. In times of overconfidence you have to look for the opportunity to preserve your capital, and in times of market despair you need to look for the opportunity to take risks that would yield positive results. In brief, if you are wondering how to think like a professional trader, then let's start with yourself.
Emotions are an important part of your trading success, therefore you need to focus on ways that allow you to take decisions without feelings intervening.
These are a few steps that you could take in order to trade without any emotions:
- Trade like a ROBOT
- Start using Pending Orders
The best way to overcome personal fear of losing, is to trade with pending orders; analyze the market earlier and place pending orders. This way you give it to the market and your strategy does the magic.
- Start using the 1 trade per day rule
If you still find it difficult to trade Forex on you own, controlling your emotions because it feels great each time you get your adrenaline pumping; then one of your KPIs should be limit to only 1 trade per day per currency pair. This way you can avoid the number one mistake traders make, Over Trading.
- Learn to Set & Forget
If you are applying Pending Orders and applying the 1 trade per day, then you can apply the 'Set & Forget' strategy. This way, after you analyze the market and place your pending orders you can simply close your trading platform and leave it to the trend to bring you the rest. Just like setting the cruise control on your BMW.
- Trade with micro-lots
In order to reduce your fear, you should also control your risk. Use small entry sizes as long as you are in training and on controlling emotions.