Users ECD Posted February 4, 2018 Users Report Share Posted February 4, 2018 (edited) I received this in my inbox and thought it was worth further investgation... 5 THINGS PRO TRADERS DO There are 5 things Pro Traders do that novice traders don't, but the good news is you can learn to apply these 5 things to your investing.Following are the 5 things Pro Traders do.1. Win big & Lose small.Pro traders don't concern themselves with how many times they win or how many times they lose. Pro traders focus on ensuring when they do win they win bigger on average than they lose. If an average winning trade is a $5000 profit they will ensure the average losing trade is half this or even less. They will aim to average 1:2 or better with their risk-reward. As an example, if they lose $1000 on the losing trades they will average $2000 or better on the winning trades. This ensures they don't need to be correct even 50% of the time to make money. If they take 20 trades in a month and only achieve a 40% success rate they will still comfortably make money. 20 trades at a 40% success rate still makes them money. They would only have 8 winning trades that total $16,000 ($2000 * 8). They will have 12 losing trades that totals $12,000 ($1000 * 12). This equals a profit of $4000 only being correct 40% of the time.I operate with a -2 STOP LOSS and Hit Rate of over 70% and a Shoe WIN rate of over 90% so I guess that I've got this covered2. Ride the coattails of investment banks and hedge funds... Follow the Shoe?Pro traders understand how investment banks and hedge funds invest money and when they are likely going to price in their expectation of a future economic or fundamental events. Having this knowledge allows the Pro Trader to enter trades that have the potential to trend big and these trends that are backed by investment banks and hedge funds allow them to win big on their winning trades. If you want to learn how investment banks and hedge funds invest their money then surround yourself and learn from traders who know. BTC? = Professional and top class players that make money at the Casino and not from selling systems with unverifiable claims of huge wins in combination with laughable "War Stories".3. Trade with a fundamental and technical view.Pro traders will generally use a combination of a technical analysis trading system and their knowledge of the core fundamentals of the market they are trading before they will enter a trade. For example, if their technical trading system is showing signs of providing them with a buy signal they will generally always ensure the fundamentals are also supporting the trade.... Much like detecting a Bias in the shoe and looking for a confirming signal...ie Pattern Recognition...MC and LC events etc... As an example, currency values are determined by interest rates and if a Pro Trader reads the Bank of England are looking to raise the official interest rate ( a fundamental buy signal) and their technical set up is also suggesting a buy signal this would be a combination of a potential big winning trade with a fundamental and technical view.4. Think counter-intuitively to the herd. Given that the vast majority of Bacc Players lose consistently it makes no sense to be guided by their decisionsWhen a market is at its most fearful, when everyone else is selling the Pro Trader is using looking buy something of value. They won't be buying just any market they will be taking a position in a market, on a stock or currency that may be out of favour with the market as investors panic but overwhelmingly the position they are about to take is backed by core fundamentals that will see the price recover. They love to buy value propositions in oversold markets and to understand how to pick value propositions in oversold markets requires you to learn about the key fundamentals of the market you are trading...Not Mechanical decisions that require greater risk in the hope that you will eventually get it right.5. Remain clear, calm and decisive.Pro traders are human and emotion does play a part in their trading, but they don't let emotion dictate how they enter and exit the market like a novice trader does...Not so sure that I agree with this...depends on your personality. I am risk adverse and recognise that my decisions can be affected if I lose a few shoes first up (YEAH...it can happen...LOL) so I walk away and live to fight another day. Pro Traders have three things they are focusing on.1. They are looking for their edge, the signal of when to enter...Wait for a discernable Bias NOT H2...LOL2. They will have a specific risk management strategy for each trade they enter to ensure they are risking a lot less than they are looking to make... ABSOFRIGGINGLUTELY ...NEVER increase your BET/TRADE to make up for previous losses...SET your STOP LOSS and never exceed it...and NEVER EVER make what you recognise is a BAD bet because a stupid frigging mechanical Progression says that you must3. They focus on executing their edge and risk management without errors every time they trade and they do not get transfixed on how many times in a row their system is winning or losing...Norm A (The best of the best) used to state that he would rather miss out on 10 winning bets than make a losing bet that he shouldn't have made...For a Pro Trader making money is simply a numbers game and what defines them is their ability to apply their edge, manage risk, and replicate the first two steps again and again. Pro traders understand their trading success is a numbers game, win more than they lose on average, don't allow emotion to dictate how they enter and exit, remain steadfastly disciplined in the three steps and meaningful profits are virtually assured year after year. There is another similarity between Baccarat and Day Trading...Snake Oil Salesmen abound...promising the world for little effort. Sorry to inform... it's not that easy...but nothing worthwhile ever is. Oz Edited February 4, 2018 by ECD 4 1 Quote Link to comment Share on other sites More sharing options...
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