Professional forex trading rules
Professional forex traders avoid common mistakes done by newcomers and amateurs retail traders. That is simple and working path for profitable trading.
Trading with patience
Many beginners start forex trading to become rich in short period of time. But very few consider the risk and commitment required to achieve this goal. Professional know this from beginning and remain fully committed to it to generate handsome profit.
Professional strictly follow entry, exit and stop loss rules for each and every trades. Stick to profit generating strategy for long term even if sometimes it gives negative returns. Amateur lack this quality and that why get kicked out of the market.
Risk profile based leverage
Professionals knows their own financial condition and based on that they design trading strategy which is best suited for their risk profile. And follow this strategy with disciplined trading while beginners take mammoth size leverage which they can’t afford and blow out their trading accounts in no time.
Stop loss order in system
Professional put stop loss order in system for each and every trade and get emotionally detached from it. If your trading system is right you will see low stop loss triggers rate and higher profiting rate. But amateurs most of the time not follows stop loss till their account gets margin call.
Proper money management
Professional’s first priority remain towards money management. Professional always risk a fixed percentage of trading capital and never change this. But amateurs never consider this or takes too much risk each time.
In depth market knowledge
Professionals remain in market for 24 hours of day and 7 days of week. Most have years of experience in trading, market research and risk management. While amateur’s lacks experience, do market research but don’t know its effects and knew nothing about risk management.
Professionals monitors each and every position all the time that why 24/7 presence is required in market. Amateurs after 1-2 profitable trading become overconfident and forget to monitor positions which result in severe losses because they don’t put stop loss in those orders or not take profit at appropriate level when they comes.