Many retail traders assume three reasons for having professional Currency Traders that are not really true. First, they assume that every trade that professional Currency Traders pick is a winner. Second, they coinigy review assume that it takes a lot of money to be a professional currency dealer. Finally, they assume that professional traders are secretly doing something that can't possibly be performed by retail traders.

None of these assumptions is correct and in fact we see repeatedly that it isn't the number of winning trades he can pick, how much trading capital he's got, or his happy access to contracts that makes the difference : it is how the professional currency dealer behaves.

1. Professional Currency Traders are not Geniuses

They are not any smart when compared to a retail dealer nor do they able to predict the market with 100% accuracy in forex trading. This is because most professional Currency Traders are also like most retail traders out there have no idea where the market will be next. Most retail traders falsely believed that the professional Currency Traders know where the market is going and the answer is no, they don't! A professional currency dealer knows that placing an impression about the market is a dangerous thing to do. At the end of the day, the market is always right.

A dealer who forms an impression about the market gets only one thing- that warm unclear feeling of being right- while missing the fact that the success of a trade comes from the ability to manage the trade itself. The constant insistence you must be right about every trade you pick is a common mistake of retail traders. The approach to being right about the market direction over being profitable rarely leads to success.

In fact, it does quite contrary, it pits the dealer up against the very system he hopes to utilizing. The constant struggle ends up clouding the trader's judgment and driving him to treat the market as an adversary that must be struggled as opposed to an ally which he is sharing opportunities with. Professional traders can find themselves on the wrong side of the trade as well focused on getting the market right as opposed to being profitable.

2. Choosing Being Profitable Over Being Right

A dealer who forms an impression about the market will preserve a losing trades and still think that he is right. Traders who trade like this thinks that they are smart than the market and they can out-beat the market. The fact is the market is always right! All throughout school, we are recognised for picking the right answer, whether it's multiple choice or free response, as long as we have the right answers we will acquire grade A.

This behaviour translates into a the need to be right in the market otherwise the trader's ego will be for a beating. Adding more contracts to a losing position known as averaging down is a strategy usually performed by most amateur traders to proof that they are right about market. However, averaging down a bearish market is a behaviour doomed for failure.

Choosing one to be profitable over being right can lead a dealer into making a different set of choices about how he interacts with he markets. By deciding to be profitable, plans are used to protect himself collected from one of trading potential- loss- and to ensure that his investment account live another so that he can participate next market opportunity. Trading to overpower the most probably outcome loss, and letting the profits take care of themselves.

3. Trading With the Right Amount of Capital

Trading currency with a leverage of 500: 1 is beyond their budget a leverage even for professional Currency Traders. This is far beyond what the average retail dealer should be working with when he gets started. This high levels of leverage are a leading contributor to a retail trader's rapid decline. There is no right amount of leverage for retail Currency Traders however it is encouraged that you first trade with 50: 1 or 100: 1 leverage with a starting capital of us money 20, 000. If your starting capital is below $20, 000.

You have no choice but to use a higher leverage : increasing your odds of losing your money fast. Understanding and manage a balance of risk and leverage is what the professional Currency Traders do. Retail traders must understand leverage and apply risk management and money management strategies to limit their risk exposure with all the right leverage levels to support your trading performance.

Becoming a professional forex trader is the dream of many and for most it remains just from the day you first start believing you can turn into a professional currency dealer. Almost 90% of the not professional traders want to become full time professional Currency Traders in the future. Professional Currency Traders are not any distinctive from retail traders. What we always thought of them are wrong.

They cannot possessed the ability to investigate market. Neither are they always right all the time. They made mistakes from time to time and their trading accounts also experience draw-downs. However, they have a different mindset they usually act differently from retail traders. With use of technology, right knowledge, and right amount of studying; a retail dealer can become a professional traders because they aren't any distinctive from them. The tiny Guy Can Succeed!