Let’s continue our discussion about some Characteristics of Professional Traders that You Must Know!
No “Hard Work”
Yes, you didn’t read it wrong. Professional traders don’t work hard. What they do is work smart.
Instead of wasting time and energy by opening many positions and staring at the trading screen continuously, a professional trader prefers to study the market before placing a position.
This is what distinguishes the psychological condition of professional traders from most traders. They have good Self Control and do everything effectively, not based on emotion alone. Too serious looking at the chart, especially when there is high volatility, will make the mind easily tense.
Knowing Your Ability
The presence of leverage makes trading activities easier to do, even with very little capital. Although forex leverage can enable you to achieve large profits with affordable capital, it can also turn against you when prices move against trading positions.
Therefore, one of the most fundamental features of professional traders is to avoid large leverage. They prefer to use the necessary leverage because they realize that too small a margin can make them underestimate the use of large lots to chase profits.
No (Too) Chasing Profit
Forex trading certainly aims to get profit. However, there is a clear difference between trying to get profit by overly pursuing profit. One of the characteristics of professional traders is that they avoid greed and are always disciplined with their targets.
The common mistake of novice traders who show too much pursuit of profit will lead to Overtrading. This action can take the form of opening 1 lot with a large volume or opening too many positions with a small lot. What is clear, this will bring losses because it interferes with risk management in trading.
Know When to Stop
There are 3 moments when a trader needs to pause, that is, when he loses, after winning, and when he is too late. To maintain excellent psychological conditions, balance trading time with your rest time.
If you keep looking at a chart when you don’t have a plan, you will most likely make a trading mistake.
According to Investopedia, when you lose, it’s obvious you need time to calm down your emotions and psychological state. This is because most traders who have just experienced losses, tend to open new positions and ignore risk management, with the hope that their losses will quickly be covered.
Yet if trading with such an intention, instead of getting profit, it might even Margin Call that occurs. Why when you win, you need to take a break? The answer is simple: greed is a great enemy of humans. When you just get a profit, then you will be in an atmosphere of euphoria that can boost confidence to open a position outside the trading plan. Opening the trading platform at all times is certainly not a recommended thing.
The possibility of misreading charts, mistakenly recognizing market trends, and other trading mistakes is certainly not what you want. Better, calm yourself and return to face the chart screen when the mind is clear and the trading emotions have been organized. Thus, you are one step closer to having professional trader psychology.
Not Tempted by Instantaneous Profit
The trait of professional traders that is no less important is knowing which profits are rational and irrational. Many novice traders are tempted by big profits when they first enter the forex business, instead, they end up being trapped by fraud, or losing money because of greed in trading. What needs to be known here is, forex trading is a job. Just like everything else in the world, to get satisfying results from forex trading, it takes also commensurate effort. The profit potential is not rational if it is said to be 100% achieved, especially without any effort from the trader.
Not easily give up
The characteristics above must certainly be complemented by an unyielding attitude because forex trading is not a shortcut to becoming a billionaire, but a process that has various obstacles and tests. Beginner traders often complain that forex trading feels difficult because they have not been able to overcome these obstacles. Professional traders can achieve success because they have psychological characteristics that never give up, so they can face challenges in forex trading.
Read more : How to Make Good Investment through Stock Trading?
