Who Is a Professional Trader?

In the financial world like the forex, stock, and commodity market. We trade and want to make a profit. But the reality is we can not make a profit. At the beginning of trading, it is very difficult to make a profit and control our loss. We struggled to find how to make a profit and fell frustrated. But on the other hand, professional traders make a huge amount of profit and live their life financial freedom and grow their money very quickly. So, professional trade, how to make money and gain money is unknown for a begging trader. There is no secret to becoming a professional trader. We do not follow the process to become a professional trader. It is not possible to make a profit from the trading world without professional trader approaches and their activities. So, if we want to make a profit and earn lots of money then we have to be professional traders and try to become professional traders. A professional trader is a person who grows their money very quickly without any hesitation to enter and exit from a trade. So, we must follow the step to become professional traders.

How Professional Trader Trade?

Step One

Proper education Professional trader at first learns more and more than trying to trade. A solid knowledge can convert a beginner trader into a professional trader. Without proper knowledge and education, it is very difficult to be a professional trader. The basic knowledge about trading is market structure, economic factors, political situation, and high impact news. After that we learn the most important part of trading education is price action, support and resistance, chart pattern and technical indicators like macd, rsi, and money flow index then we can learn another technical indicator to grow more knowledge. So, at first, grow our knowledge and try to trade like a professional trader. But we at first try to trade rather than try to learn. It is no proper way to be a professional trader.

Step Two

Strategy After learning the basics of education and grow our knowledge. We must find a trading strategy to trade the entry and exit process. Without a trading strategy, we can not be professional traders. A professional trader has a trading strategy to make money. A strategy built by fundamental and technical analysis. So, to build a trading strategy we learn the fundamental and technical analysis and trade like a professional trader. Fundamental analysis is an economic indicator, macroeconomy, and news. Technical analysis is price action and support and resistance, chart pattern, and technical indicator. So, at first, learn fundamental analysis then learn to market analysis with technical analysis and build a trading strategy to trade. If we have no strategy then it is not possible to make a profit from the market. A trading strategy is the most important part of a professional trader’s approach: try to build a trading strategy and trade to make money which way a professional trader does.

Step Three

Experience When we have proper education and knowledge then we have a trading strategy. Building a trading strategy is not a short-term process. It is a long-term process. Every strategy is not suitable for everyone. It varies from trader to trader because every trader is unique and has a unique mindset up. Everyone is not trading the same trading strategy. So, to find a strategy we need time because which strategy is perfect for us depends upon the strategy backtest. Without the backtest, we do not find which one is our strategy. So, at first, backtest our strategy and find it is profitable or not. If the strategy is not profitable then it is not our strategy. Then try another trading strategy to find a profitable one. The trial and error process is called experience. To find a strategy that is preferable for us then we get to experience. Experience is one of the most important factors to be a professional trader. A professional trader knows which strategy is profitable for making a profit and which one is not profitable.

Step Four

Record of our trade When we enter a trade in the market then we must record the trade entry and exit. Record of our trade is a good practice to be a professional trader. To build a trading performance we must record our trade. If we record our trade then we find the problem of our trading entry and exit process. We find why we lose trade and how much profit we must lock. Without a trade record, it is not possible to find the proper process of trading performance. If our loss is more than our profit then it is not possible to make a profit from trading. A professional trader records their every trade. If they lose then they find the cause of losing trade. They also track a trade that must be contained; loss is more than profit. Our profit must be more than our loss. So, try to maintain a trading journal to record our trading history. Step 5. Risk management Every trade is risky. Nobody knows what happened in a trade. It may be a loss or profit in every trade. So, professional traders maintain risk management, they do not enter all of the money in a trade. The market is risky without risk management to make a profit is very difficult. If we want to be professional traders then we must maintain risk management. There are many risk management rules but the most used are 1:2 and 1:3 risk: reward. The 1:2 rule is if we enter a trade then our profit must be double our loss. The 1:3 rule is that our profit must be triple our loss. Step 6. Money management is one of the parts of risk management. If we enter a trade then we must risk 2% to 5% of our total balance. If we risk more than 5% then our risk management rule violation. It is very risky to make a profit from the market. So, a professional trader strictly maintains risk management and money management. We must stick to our risk management and money management rule. If we break the two rules then we never make a profit from the market. So, follow the professional trader risk management rule which they apply in the market to keep profit more and more.

Conclusion

If we want to be a professional trader and want to make a profit from the trading world then we must follow the step which we explained above. Every step is very important and we have to follow. If we think it is very easy to make a profit from trade then we are wrong. Without converting our begging knowledge to a professional trader level, it is not possible to make a profit from a trade. So, try to think of ourselves as professional traders way.

Hasna Hena flower.

The Ultimate Explanation Of Naked Forex Trading