How to Make Money Like a Professional Trader

by Joshua Geralds - Date: 2008-10-13 - Word Count: 586 Share This!

There is a large difference when you place a professional trader next to a rookie trader. Let us assume that both traders the professional and the rookie both use the exact same trading plan, and trade the exact same currency pair. One will be profitable the other would lose. Needless to say the profitable trader would be the professional trader. Just how then does the professional trader so it? What is so different that using the exact same trading plan, one would make money the other would fail? Folks the answer lies in the psychology of the trader. Trading psychology is used to describe the way a trader thinks and behaves when a trade is taking place. A trader with the proper mindset will be able to overcome the temporary setbacks from the market and move to grow his or her account consistently. And over time that is what makes a trader rich. The good news is that the professionals didn't start out as professionals. They too had to learn to master their minds and their emotions when they trade. That means you can also take the same measures to improve yourself and become as proficient a trader as the pros! A trader's personal psychology is very important to his or her bottom line, to start things off one of the most important aspects to master is discipline. A trader with discipline will be at an advantage as compared to other traders. Remember that in trading we deal with other humans, and if you are more disciplined in your approach you automatically have an inherent advantage over the other traders who trade by emotion or whim. Building discipline is not an easy task; it will take time and effort for you to master discipline. To start things off you will need to keep a journal. In your trading journal record all aspects of the trade including the feelings you were experiencing before, during and after the trade. Keep your journal consistent and make it a pint to record all trades. After a week of trading, reflect on your trades and see when you make the most money and when you lost the most. Next is handling losses when they occur. There will be losses and the world's best trading plan can only give you at most a 75% success rate. That means one quarter of the time you will lose. So for every hundred trades you take, you will lose 25 trades. To survive that sort of numbers you have to learn how to handle your emotions. If after a loss, you get angry or upset and decide to take revenge on the market by increasing your position size, you will lose your account really fast. A professional trader knows that losses are inevitable and when they occur, you just have to shrug off your losses and trade your plan. It is tough to and frankly it can be unpleasant to do. A trick I learnt from my mentor was to treat the money in the account as someone else's money and not mine. I have to treat my account as my client and the wins I make is my commission, the losses are my clients! A good trader will recognize that trading is never simple, because as long as there is a human element involved the most unexpected can happen. But because of the unexpected a good trader with the correct mindset can potentially make a lot more than other traders with weaker wills.

Related Tags: retirement, currency trading, forex trading, investments, forex, money management, trading plan

Dr. Joshua Geralds is a successful investment specialist with over twenty years experience increasing the income of people world wide. For a limited time get his free Money Management to a Million Dollars e-course here:

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