There are a number of surprising factors that separate the forex trading beginners from the professionals; and I would like to take you through some of those factors today.
To begin with, beginners seem to innately think that the professionals spend every waking moment looking at their charts; but this is probably the opposite of what is true. Professionals know what their edge is, and they don’t waste time looking at charts if their edge is not present. They wait for the market to come to them and enjoy some time on the golf course.
Beginners also seem to love technical indicators. I was the same when I first began trading. For beginners, it seems that if you can find the right combination of indictors and a system that goes with them, then you will not look back. However, it is far better to simply look at price action and what is actually happening in the market, than what has happened in the past.
Professional traders also tend to rely on their own minds rather than trading robots. The market is essentially a combination of human emotions, so what better way to analyze mass-market psychology that with a human mind? Robots tend to be inflexible and although they can have a market edge, that edge is usually minimal and very long term.
Also, beginners often feel the pressure of trading with real money. They trade with money that they can’t really afford to lose, and as a result, they trade with their emotions.
Professionals on the other hand feel no pressure to make money in the markets because all their eggs are not in one basket. They have other income streams, and it does not matter if they lose money in the markets. As such, they trade without emotion, and are more successful for it.
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