Things you will never hear from a professional trader

Things you will never hear from a professional trader

Due to the low success rate in the trading profession, it is very hard to find a successful trader. Many people claim that they are making money from trading. But if you look closely at their condition, it won’t be tough to realize that they are also earning money from different sources. Paying your bills and living your life in the UK is not as easy as it seems. You have to be very careful about the trade execution model and focus on the core concepts of trading.

This article is not going to be a traditional read. You will learn a few important things that will help you to identify a successful trader. Let’s explore the things that a professional trader will never say.

It’s hard to lose

The rookies and intermediate traders who claim to be successful always tell trading is an easy task. To them, losing money in trading is very hard. But for the pro traders, losing money is very common. They will never say that it is hard to lose money when trading. A good trader who has years of experience will always say that you never know how easily you can lose money in trading. They will always educate rookies so that they don’t make the same mistakes repeatedly.

Risk management is a waste of time

People often take pride in not using the stop loss. To them, the market is nothing and they can always win trades. But such an aggressive approach can result in heavy loss. Risk management might the most important thing needed for retail traders to earn a living. If you ignore the importance of a risk management policy, it will be a tough to survive in the long run. Focus on the core concepts of trading and it will help you to realize the importance of money management.

Trade-in a low-cost environment

This is something which you will hear many times form fake traders. They will say cutting down the trading cost by choosing an unregulated broker is a great way to earn more. But the top traders never rely on this information. They take trades with a high-end broker like Saxo so that they can make trades without having any trouble. You can find this information more useful when you visit a good broker. A good broker always tries to encourage the traders to focus on quality execution. To them, the environment and the trading tools are the most important things.

Average down the trade

Adding more to the losing position is the actions of a rookie trader. But if you closely analyze the process, you will notice it is a very risky approach. You might blow up the entire trading account by trying to follow this rule. Trying to average down the trade is more like trying to make money in a casino. We all know the house always wins. So, if you want to burn your money trading, start adding a position to the losing trades. However, some traders often average down the trade but have advanced skills in managing the risk. For instance, they never risk more than 1% of their account balance in any trade. Such a low-risk approach allows them to add more positions to losing trades whilst keeping their capital safe.

My strategy is perfect

A professional trader will never say that his or her strategy is perfect. To them, a trading strategy requires constant revision. Unless you can revise your trading strategy regularly, it will be a tough task to earn money at trading. Things might be tough at the initial stage, but once you learn to take trades with discipline you will realize that the trading edge often requires revision. The changes are done to the trading system so that traders can have a better edge in trading. Slowly, if you follow this rule, you will become a profitable trader.

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