Making money like professional traders have always been a dream for the novice traders. Here are the most useful Forex profit making tips with 3M’s of trading strategy. Read below to know more about the 3M’s principle and the tips of pro-traders.
AtoZForex – You might be thinking how professional traders achieve success in trading. Making profits in a few deals is easy, but doing it consistently in order to make trading a full-time income is challenging. So, what is the secret of pro traders and what makes them different from you?
5 Forex profit making tips every trader should know
You may find many other tips from different sources, but here I am listing the most useful 5 Forex profit making tips to make money like Pro traders. This is based on the experience of successful professional traders.
1. Pro traders’ habits and strategies
First of all, we will discuss how the typical day of a pro trader is different than yours. There is a lot to learn from the daily habits of a pro trader. The novice keeps on looking at the chart and desperate to trade. On the other hand, the pro trader keeps calm while doing his chores as he knows there is no rush. The live trades always keep the novice trader’s mind busy while the pro trader is stress-free as he trusts the process and the trading plan.
In order to set up their trading strategy, the pro traders wait patiently. In addition, the combination of technical and fundamental knowledge helps them to understand when to enter a trade. The professionals have developed their strategies through years of learning and trial and error. Moreover, they have confidence in their trading strategies. If you don’t have 100% confidence in your trading strategy, then you need to think about that strategy and try to develop a new one.
2. Thinking ability (mindset) of a pro trader
Secondly, the pro traders do self-analysis and understand their own minds. Overtrading or gambling in the market, being greedy, revenge trading, being afraid to enter a trade are some of the issues that one can encounter. The professionals identify and work on solving these mental issues. Watch the video on how to think like a pro trader.
Moreover, the most important requirement to become a pro trader is developing a profitable trading mindset. In my opinion, it is something you must work on. It just does not happen. It comes with time and experience. However, it starts with educating oneself and with learning about common trading mistakes. The professionals work on eliminating the flaws that can interfere with their trading success and so as you. The main difference in mindset between a novice trader and a pro trader is that the professional has no urgency in his trading approach. One more quality of pro traders is that they trade when most people are too afraid to trade.
3. Capital and risk management
This will seem weird to many of the novice traders, but when you are dealing with finances, you should have strong management plans. If you will not, then you may end up losing all your funds and savings. Most of the pro traders have capital and risk management plans. You should have knowledge about capital preservation. You should also know the importance of proper exit strategy for every trade that you take. Do you know why risk management is so important? Pro traders do understand and have sound knowledge about all these things and they even have effective plans for them.
Market volatility is also an important factor to bear in mind while trading. Pro traders have a keen awareness of market volatility. They very well understand the frequency of the volatility changes and hence they adjust their approach accordingly. One more thing to keep in mind is that you understand market correlations to a certain degree. Furthermore, you need to make sure you are not doubling up a position by trading two markets simultaneously. For example, like the EURUSD and GBPUSD that is highly correlated.
4. Planning the trades
A pro trader builds the trading plan on a solid foundation that consists mainly 3M’s (Method, Mindset, and Money) of trading that we discussed above. You will not achieve success without a thorough understanding, mastery, and development of all three M’s. You must build your trading foundation on these three pillars. If you lack in capital management even if your strategy and mental state are up, then you will fail and vice versa for the other parts. If one of the three is down, you will not be able to make it.
5. Learning – an ongoing process
Last but not the least, you should be open to learning. The day you think that you know everything is the end to your success. Professionals learn from their own mistakes and discuss those pitfalls with more experienced than them. The golden rule is that don’t hesitate to admit you do not know it all. Instead, take instruction and share knowledge from others who know more than you. The most important characteristic of an intelligent and successful person is not that they know a lot. In fact, it is that they admit they don’t know everything and they are open for constantly learning more. As per one of the quotes of Colin Powell:
“Success is the result of perfection, hard work, learning from failure, loyalty, and persistence.”
We all are much aware that incomplete knowledge is always dangerous. So keep yourself appraised with the recent trend and remain open to learn new things. In my opinion, the one who learns from his own mistakes is a great learner. Finally, if you really want to start making money in Forex trading, you can refer to our Forex Education section on AtoZForex.com and keep learning as an ongoing process.
Are these Forex profit making tips helpful? Let us know in the comments section below.