How to Make Money Like a Professional Trader
- 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: http://www.pipsalot.comYour Article Search Directory : Find in Articles
Recent articles in this category:
- Internet Based Forex Buying And Selling Class
By selecting to enrol in an online forex trading class, you are placing down a flag that you are tak
- Fx Instruction Classes
Getting your self efficiently into the forex trading market, without taking undue dangers, can appea
- Automatic Fx Trading
Intelligent Forex trading is performed by means of custom software applications that allow for non-s
- Fibonacci Technical Analysis Overview
There is a unique ratio that could be used to describe the dimensions of just about everything from
- Can A Forex Broker Help You Change Your Fortune?
Forex market is a volatile market and you should expect loses along with the profits. This very natu
- Is It Important To Know About Forex Before Finding Forex Broker?
If you are planning to invest your money in the forex market, then you need to understand the rules
- Managed Fx - Expert Managed Forex Service Will Make Easy Profits For You
Managed FX. Know what you need to easily start making profit in your forex trading account todayDo y
- Fap Turbo Review - Facts About The Fap Turbo Expert Adviser!
FAP Turbo, despite being one of the older automated Forex trading systems, has managed to remain the
- Forex Autopilot System - The Best Way To Use This Forex Software!
The Forex Autopilot System is an automated Forex trading program which will allow you to trade in th
- Is Forex Trading Really That Risky?
You have most likely heard or maybe even experienced the risks involved in forex trading. It is not
Most viewed articles in this category:
- The Shocking Truth About the Forex Trading Industry!
You won't have to look far on the internet to find an endless barrage of web sites promoting the gla
- Forex Trading - Money Management Secret (part 2)
Adjusting your trade size on a fixed percentage isn't a good idea. That we established in part 1. No
- Trading System Possibilities
So many people continue to discuss the use of common technical indicators in trading systems, withou
- A Beginner's Guide to Currency Trading
I'm sure that you must have heard of currency trading. But do you really understand what it is all a
- Learn Forex Trading Online - An Introduction to Fundamental Analysis
It is often said that information is the key to successful Forex trading but, while accurate and up-
- Forex Trading is NOT Just for the Pros
I had a discussion recently with one of my newsletter subscribers. He brought up the topic of forex
- How Indicators and Patterns Point the Way to Forex Profits
If you have done even beginning research into trading, technical indicators and charting will become
- Forex Trading from Home
Forex is one area of work at home opportunities that seems to be growing a great deal. People essen
- Forex Advisory Services
Forex advisory services provide personalized consulting, currency forecasts and advice for corporati
- Forex Currency Trading Systems
The forex currency trading system is the system, which lets the forex traders buy one currency and s