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Forex Trading

TRADING SKILLs – Signs that will become a professional and profitable trader.

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On my previous post, I wrote about some online entrepreneurship skills you need to learn and add to your skills.

If you missed that post, you can CHICK HERE to read the post.

As a professional trader who acquired the forex trading skills, you must have passed through some kinds of difficult times during the learning process, practice and real trading experience.

Nevertheless, this is part of every learning process. Its like a natural rule of law.

That’s  why we still believe that practice makes perfect, and this formula works a lot especially in the area of forex trading.

I will like to differentiate between professional traders and normal trader.

But before then, let us know who is a professional trader.

There are many type of traders who became professional in their own way of trading.

The type of trading I know and can boldly share with you here are;

  • Fundamental  trading.

Fundamental trading is the ability to trade and leverage forex market opportunity  by using the economic event of a country either going long or short.

 These trades  can also be called scalping, but making use of information to trade without technical analysis.

A trader who makes maximum use of fundamental news almost all the time to leverage this opportunity is said to be a fundamental trader.

  • Swing trading.

Swing trading can be seen a process of maximizing forex market opportunities by either going long or short.

Swing trading last for at least a day or more and even weeks in some cases.

Swing traders make use of technical analysis to predict the future of the market, if it will be going long or short over a period of time.

A trader who often times hold trades more than a day is said to be a Swing trader.

  • Scalp trading.

Scalp trading is the ability of trader to makes analysis and maximum use of forex market opportunity to either go long or short within a day.

Scalping trade can be within minutes to some several hours, scalping end within a day.

A trader who does this type of training is called a scalper or scalp trader.

A professional trader is an experienced skilled trader that has the ability to predict the future of the forex market either through his or her own personal technical analysis (T.A) and strategies, fundamental analysis etc.

Furthermore, there are special in their own ways because they also have the ability to endure, control emotions, make more profit than lesser losses, leveraging market opportunity, nice entry and exit point, waiting for market structure and their setups, identifying reversal points, proper risk management and lots more. 

DIFFERENCE BETWEEN A PROFESSIONAL TRADER AND A NON PROFESSIONAL

Let see the difference between a Professional trader and a normal trader so you can be able to spot the reasons why you are not a professional trader.

  • Professional trader makes analysis and wait for their setups, they get two to three confirmations of their analysis before executing their buy or sell orders.

This helps them to get high probability trades, and about 70-99% signals.

  • Professional traders stay away from their chart after executing orders, they don’t glue to their chats and they check their trades when they are suppose to.
  • Professionals traders don’t closes their trades until it hit their take profits and stop loss. This usually enable  them to leverage the forex market opportunity well and maximize profits.  
  • Professional traders use at least risk ratio 1;3 and above on their trades. This enables them make good amount of profit despite the loss.

i.e if a trader risk 100$ to make 300$ and he executed 10 trades in a week.  If he loses 5 trades and win 5 trades.

That means he make 300$ each multiply by the five trades he won, that is about 1200$.

And he loses 100$ multiply by 5, which is about 500.

That means you will making a total amount of 700$

  • Professional traders don’t doubt their analysis. They trades what they see not what they feel.

They execute buys orders, if the market gives them a buy not minding it they feel it a sell.

  • Professional traders never give up. They can trade amount of money and flip it to a reasonable amount.

They don’t see any amount too small, and don’t see any amount too big.

  • Professional traders have the ability to control their emotions no matter the amount of money they lose.

They believe the market is the friend to no one, they accept what the market gives them Irrespective of their analysis.

  • Professional traders don’t allow the much profit they make to enter their head and they quit trades for that period or day after losses.
  • Professional traders makes more money when  their correct and lesser losses when wrong.

How much you make when you are right and how much you losses when you are wrong really matters alots.

  •   Professional traders use their forex knowledge skills to make more money by creating and posting their videos you do watch on youtube, creating and selling forex course, ebooks etc.

They also bring more traders to their broker through their affiliate links and make some certain amount of commission.

  •  Most professional traders makes use of reasonable amount of lot size to leverage their high probability trades.

They have the ability to catch sniper entries, add more positions when they are suppose too as prices moves, placing pending other that prices triggers, exit at the right places.

  • Most professional traders do scalp, swing and trade fundamental news. They have their favorite pairs they do trade except their which to trades other pairs.
  •  Professional traders takes forex trading as their occupation and business. They further move have personal offices with different type of display screens.

They create and own a  their own company and bears the CEO title of their company.

They have ability to hold trades for days, and take their profit rightly.

What I noticed is that most of the professionally  known traders do trade currency pairs

There are many more things a professional forex traders have like the discipline, they don’t talk much, they are very intelligent and more of that.

Now let talk about the Non professional traders and those traders that are less profitable.

  • Non professional traders don’t wait for setup, they are very aggressive. They enter into any kind of opportunity they see, not minding the kinds of market traps in the forex market and this trades turn against them either by hitting their stop loss or by them closing the others.
  • Non professional traders keep watching their chat immediately after placing their trades, some of this traders will eventually close any loss because of fear, impatient and lack of the ability to hold trades when the market plays around.
  • Non professional traders do take their profit very early, they most time close their trades when it goes into little profits.

This act makes them unable to leverage the market opportunity.

They always look for opportunities in the forex market.

  • Non professional traders don’t use good risk ratio. Some of them use ratio 1;1.

They risk a certain amount to make that same account. i.e they can risk 100$ to make 100$.

 If they place a total of 10 trades in a week, if they win 5 trades and they win 5 trade, They will be left with no profits for that week.

In some cases they don’t use any risk ratio.

  • Non professional traders do doubt their analysis, they follow what they feel not what the market is saying.

They close their trades when they in little loss.

They are not ready to loss at all, they are always afraid to loss.

  • Non professional traders quickly gives up, they don’t care trading a small account. In most case they don’t bother trading an account where they make losses. They will be thinking of depositing another money.

Ogala Theodore Is A Nigerian Blogger, Forex Technical Analyst/Trader, Internet Marketer, Young Enterprenuer & CEO of 9japlugged.com.ng & Teddy Pips Trading Concept.

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