profitability

Professional Forex Traders Verses Retail Forex traders.

There are many participants active in the Forex market but to keep things simple i like to split the players into 2 groups. Retail traders and professional traders.

Everyone starts off as a retail trader, but only a very small percentage actually have the skills and the determination required to make the transition from the retail side of the business to the professional side.

How To Become A Professional Forex Trader.

Becoming a professional trader has nothing to do with how many years you have been trading for. Some of my students were trading for over 10 years as retail traders.

Becoming a professional trader has nothing to do with your attitude, or your approach to trading. It also has nothing to do with whether you are trading full time or part time.

There are only 2 things that set professional traders apart from retail traders. Knowledge and consistent profitability. But you cannot have consistent profitability if you do not have knowledge.

Why Retail Traders Lose Money.

There are many reasons why retail traders lose money, but the main reason is a lack of understanding of how the Forex market actually works.

Now this is a real big problem for retail Forex traders. The reason its such a big problem is that many retail Forex traders believe that they understand how the Forex market works.

Retail traders believe that they know how to read a chart. So if you don’t know that what you are doing is incorrect, and you think that your understanding of the market is correct, why would you change what you are doing?

When a new student has their first lesson with me, they are totally blown away by what i have to say. Traders are so convinced that they know how to trade the Forex market, that it comes as a real shock to them when i show them what they have been doing wrong.

Only when i have educated retail traders to see the market how professional traders see it, can they move forward on their road to profitability .

Why Are So Many Retail Traders Doing It Wrong.

Its a fact that 95% of retail traders lose money. By losing money i mean not being consistently profitable. Everyone makes money from time to time, but making money long term is what counts.

The reason why retail traders are doing it wrong is very simple, its because they have been taught to do it wrong by other people that are also doing it wrong. The so called training providers that are teaching people how to trade, do not know how to trade themselves, and because they do not know they are doing it wrong, how are they going to change what they teach?

So as you can see its a vicious circle of incompetence that breeds more incompetence.

So Whats The Answer?

The answer is to pay a professional Forex trader to teach you how to trade. If you pay for a retail Forex training course, you will only learn how to trade like a retail trader, if you pay for a professional Forex training course you will learn how to trade like a professional trader.

You would not pay a plumber to teach you how to become an electrician would you? Its simple, find a professional trader such as myself, and pay them to teach you how to trade, it will save you years of heartache and lots of money.

How Professional Forex Traders Trade The Markets.

Now i don’t often give away anything for free, i charge a lot of money for my knowledge, and what i teach is worth 10 times what i charge for it, but i am going to give you a little insight into the way a professional Forex trader trades.

I have many strategies that i use every day to make money from the market, all of which i teach in my Forex training course, but to be successful one thing that you have to understand is the intrinsic value in what you are buying or selling.

We are in the buying and selling business, and any business that involves buying and selling has one underlying principle, that if applied correctly, will enable you to make money in any buying and selling business. And that principle is “its not the price you sell it for that makes you money, its the price you buy it for”. If you buy it cheap enough, you can always sell it for a profit.

Let me give you an example. You are chatting to the guy next door and he tells you he’s got a few financial problems and he needs to get some quick cash.

He wants to sell his 2 year old Mercedes, and wants to know if you are interested in buying it. So you ask him how much he wants to sell it for. He says £35,000, but he needs to know right now if you want to buy it or not.

You cannot have any time to go online and check out the model, the mileage the condition etc to get a value on it. So you say “i don’t know if that’s a good deal or not, so i am going to have to say no thank you”.

The next day you see the guy again, and he says look mate i really need to sell this car today, i will let you have it for £25,000, but i need the money today. You have still not checked out the price of the car online, but you are getting it for £10,000 less than he was offering it to you yesterday, so you agree to buy it, as you think it must be cheap now, as its 10k less than yesterday.

So you give him the money and take the car. You then go online to check out the price, and see that they are selling the same car with the same mileage in the same condition in your local garage for £23,000. Now based on the fact that the local garage will probably have a 2k mark up on a car like that, the true value is probably around £20,000 for a quick sale. So you have just lost £5000 in the blink of an eye.

Now why did you lose your money? You lost your money because you bought something that looked cheap, but as you did not know the true intrinsic value of it, turned out to be expensive.

So there are 2 lessons to be learned from that example. Just because it looks cheap, does not mean it is cheap, and knowing the true value of what you are buying before you buy it will make you money. As i said its not the price you sell it for that makes you money, its the price you buy it for.

Thanks for visiting my blog, have a great day. 🙂