How to be a Professional Trader: Tips & Rules
Every beginner wants to be a professional trader that is able to make money on a consistent basis. But the simple reality is that this is much easier said than done. What we’re here to do today is to provide you with the top tips on how to be a professional trader so you can make money with ease.
How to be A Professional Trader
Let’s take a look at all of the tips that you need to follow in order to be as profitable as any professional trader out there. Let’s get to it and help you make money!
Leave Emotions at the Door
One of the things that every professional trader does is to leave their emotions at the door. The simple fact of the matter is that emotions have absolutely no place in trading whatsoever, but the training is all about being logical and rational and reasonable. If you get too emotional while trading, you are going to make bad decisions that will lead to losses.
For instance, if you are on a winning streak and winning tons of money, you are probably going to get overzealous and overconfident. This will lead you to placing unreasonable trades with way too much risk that will probably end up losing on the other side of the coin if you are losing way too many trades, you might get discouraged to the point where you don’t trade properly anymore and where you don’t take enough risk.
Either way, letting your emotions get in the way of logical thinking is not good. You need to stay calm and collected and you need to use a proven trading strategy. If you have a strategy that is proven to work, then there is no reason to get emotional either way.
Manage Your Expectations
Another thing that you need to do as a professional trader is to manage your expectations. The simple reality is that trading is more of a marathon than it is a sprint. The point here is not to cross the finish line the fastest, but to actually get to the finish line, which here we mean actually being able to profit instead of losing money.
The unfortunate reality is that many beginner traders start trading with the expectation of being able to make tens of thousands of dollars in a single week and being able to increase their account to a 7 digit account within just a couple of months. This is simply not possible for the most part. Sure, you might get lucky and win some huge trades, and there are some people out there who make it big in a short amount of time, but these people are very few and far in between.
It is much better for you to win as many trades as possible over a long period of time than it is just to win a few trades and to make large sums of money off of those few trades. The point here is to manage your risk and to keep your expectations reasonable, because the reality is that you just aren’t going to make money every single day and you will lose trades on occasion.
Manage Risk Levels
On that same note, something that every professional trader does is to manage their risk levels. In order to manage your risk level, you need to know how to size your positions properly, how to use reduced leverage, how to take advantage of options, and how to use stop loss properly.
Moreover, you also want to consider the fact that you never want to risk too much money in a single trade.
For instance, if you have $10,000, you don’t want to place more than $200 into a single trade. The rule of thumb here is that you never want to risk more than two percent of your total trading capital in a single trade. If you manage your risk properly, even if you lose some trades, you still won’t end up losing all that much money.
Know When to Cut Your Losses
Something else that every professional trader knows how to do is when to cut their losses. More often than not, newbie traders will stick with losing trades in the hopes that they will turn around. But the fact of the matter is that you will probably end up losing way too much money doing this. It’s a much better thing to simply cut your losses. Was the trick list fade and then start from the beginning. There is no point in sticking with losing trades when you can place new winning trades.
One of the biggest mistakes that many newbie traders make. Something that professional traders never do is to not think independently. The main point here is that you need to be able to be independent and self sufficient in order to be a professional trader. Stop going on Google and asking what is the best trading strategy to use for Forex.
The fact of the matter is that there is no one best trading strategy for any situation. You need to be able to think independently, to analyze markets on your own, and to come to your own conclusions. Constantly relying on others for answers that may or may not be correct is not the way to be a professional trader, especially not over the long run. This is like if a brain surgeon were to consult Google every time they have to operate on somebody’s head.
You Have to Put in the Work
Something else that you need to realize here is that as a professional trader, you need to be able to put in the work. In other words, you can’t simply go to Google and ask questions, and you can’t expect everybody to provide you with answers that are always right. You need to be able to actually test your own hypothesis.
For instance, if you want to know whether a 10 week breakout or a 50 week breakout is better for returns relative to the risk, then you should go look at a wide variety of stocks over a long period of time to determine this on your own. If you’re not willing to do the research and put in the work, then you are never going to be a profitable or professional trader.
Start with an Education
Perhaps the most important thing that every professional trader does at the beginning of their career is to start with a good and solid education. The bottom line here is that if you have a good foundation of knowledge under your belt that you can build upon. Then you are on the right track for success. Remember folks, trading is not easy. You need to be able to read charts. You need to be able to read indicators. You need to be able to analyze the market and much more. Getting a good trading education before you place your first trade is probably our number one professional trader tip of the day.
Being a Professional Trader – The Bottom Line
If you follow all of the rules and tips that we have provided you with today in terms of being a professional trader, then you should have no problems in becoming profitable in no time at all.
If you need help day trading, and what you need is a comprehensive education, particularly on Forex trading, then the best place to be is the Income Mentor Box Day Trading Academy. At this time, the IMB Academy is the most comprehensive, user friendly, effective, and affordable Forex trading school out there.