How to Turn From Retail to Professional Forex Traders
How to Turn From Retail to Professional Forex Traders
A professional forex trader is not someone who makes money with each and every trade. The fact is a professional trader will make losing trades. What separate a professional trader from a retail trader will be shown in how he reacts to a lost trade. When professional traders lose in a trade, he tries to find the reason and not to repeat the same mistake again in the future.
The shift from retail trader to a professional trader is not easy. Although developing strategies and techniques to make the transition can be difficult, it is not impossible to develop the proper makeup to emulate. Retail traders can leverage on technologies to put them on the same level playing field with the professional forex traders. Professional traders break up their approach to the markets in three components:" discipline, accountability, and planning.
1. Discipline
Professional forex trader means someone who has built his confidence through enough practicing and repeating his success. Repetition and sticking to the plan is the rule for all professional forex traders. Professional traders are required by law to be disciplined at all time during their trading. Transitioning from a retail trader to a professional forex trader will mean that the trader take responsibility of sticking to their trading rules and money management strategies, just like the professional traders do every day.
2. Accountability
Professional forex traders are forced to keep their trading records transparent to the respective regulatory bodies, immediate superiors and his clients. It is their responsibility to safeguard their clients' money and company funds while trading to achieve a better return.
As a retail trader, you have all the reasons to trade for yourself and you would not have any responsibilities to other parties beside your spouse. Your successes, losses and strategies need not be revealed or monitored by anyone. It stands to reason that it is no surprise that retail traders fail in their fiduciary duty to yourself.
3. Planning
The success of professional traders is not by accident - it is by design of trading plan. They have the rules and all the reasons prior from entering into a trade. Entry and exit strategies are constantly developed and improved to minimise losses and increase profits. They looked back into histories to understand more about their trading system performance. They understand their trading system like that of a surgeon to a human body.
Retail traders have to keep on trading with a demo account at least for a few months. Trading with the demo account without an especial and well-described system is a waste of time. Retail traders should first write out a trading plan, understand the trading plan and start first by working the plan from history. Record results of your trading performance and improve on your plan by trading the demo account.
The great news is that the techniques that professional forex traders used are easily found and, in fact if you ask them nicely, they will give you documents necessary to see behind the scenes in their programs. This will mean that a retail trader will get access to information on how they use entry and exit strategies to minimise losses and increase trading results. Then it is a matter of incorporating what they do right into your retail activity to help you get to the next level.
As a retail trader, the secret to transitioning to a professional forex trader is not about how much money you bring to the table but a combination of your discipline, responsibilities to your trading capital and committing yourself to the planning prior to trading.
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