How To Shortcut Your Way to Become A Successful or Professional Trader in Forex

There is a clear separation between amateur traders and professional traders. One of the main differentiation is amateur traders mostly fail in less than 6 months while professional traders keep making money consistently as their career every day. Professional traders do not live with stress as they know from their subconscious mind that trading is a number game in which they just need to make more wins than losses or win a big chunk while losing small stake. In this post, we explain some differentiation between two types of traders.

By the way, the main difference is how they think about trading. Most amateur traders find trading the most exciting money maker in the world; they expect that if they master technical and fundamental analysis, they will make money without worry and further learning. They might think they will be richer than everyone who is doing regular jobs. As they start to meet obstacles and failures, most will quit and think it impossible to win the game while some may still continue to lose more and more money without stepping down to learn from the experienced traders or practice their skills on demo money first. At this time, they become very hopeless while some may try to find other ways to make money online.

What about professional traders? What do they think about trading? Most professional traders are not born. They failed when they started to go into trading business. They will seek advice and coaching from experienced and successful traders. They start to read books about how successful traders make it successful. They focus on trading psychology much more than trading speculation techniques. They know that any simple trading system will eventually make their trading successful if they know how they control their trading emotionally.

They stop thinking trading is a fantastic way to make fast profits. They stop valuing technical and fundamental analysis so much. Usually, they think that people are living in their own way and trading Forex is just a regular job they take to replace their other jobs. So  they don't expect to become millionaire overnight. They think trading is simple but a bit more profitable than other jobs if they do it the right way. They understand that losing is very normal in this business and they care about their emotion more importantly than other factors. They take no revenge as they have no one to blame; we can't blame the market. They admit that they entered the wrong positions and take responsibility and accept it. They think that it is normal to make mistakes in it and don't blame themselves as they know that making mistakes in trading is simple and often happening in the trading.

The second difference is how they analyze and trade the markets. Most amateur traders usually start by using very small time frames (1min, 5min, 15 min, 30 min). They often think that small time frames create more opportunity to take trades and find the setup. They also think they don't want to stare the screen all day just to take one or two trades. They believe that their trading system is superb so more trades mean more profits.

All of these thoughts are completely wrong and contrasting to how professional traders analyze the markets. Pro traders understand that more trades mean more risk. Watching the charts all day will often destroy their results. Have you heard hedge fund traders spend only 30 min per week to look at the chart while doubling his account from year to year? This is how they do it. Big time frame has less risk because traders can avoid unnecessary market noise that can make their contracts hit the stop loss. Even though there are news events that are important, the big time frame traders don't care much about news announcement.

Often times, the charts on big time frames clearly express itself even before the news announcement. They may keep their trades running for days, weeks or even months. Big time frame trades will give more pips compared to small time frame trades. So one big time frame trade equals to the sum of profits of 3 or 5 small time frame trades combined. If one big TF trades has 100 nominal levels of risk meaning 5 small time frame trades equals to 100*5 = 500 levels of risk. Hence, you can see why small time frame or day traders blow their account in less than 6 months.

To conclude, to become a successful trader will start from educating yourself about how you think about the market and learn the psychological manners you should take, learn from successful traders, and start learning to trade using big time frames. Trading system is no longer so important as you first thought. When you become a pro trader, you will see trading Forex is not a frightening, insecure and stressful career. If it is so stressful, how are many institutional traders living with their trading career enjoying large commissions non-stop? I hope this post may help you a lot.

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