Part 1 : 6 Learning Tips for Thinking Like a Professional Forex Trader
The article studying forex this time is quite long, so I took the initiative to divide it into several parts, follow this article so that you become a professional trader.
There is a striking difference in the way of thinking and acting between a professional trader and an inexperienced trader.
The main difference is how market information is obtained and evaluated. How exactly do we evaluate market information, depending on our mindset, namely our mental attitude and beliefs in the field of forex trading.
What are the mindset and beliefs that can make us independent and think like a professional trader?
1. Forex trading is not complicated! But easy?
Making Forex Trading is no more complicated than it really is.
The first step is to delete all the things that are not important on the graph.
I am surprised by traders who are less experienced, they use excessive Forex indicators or trading robots, but this can eliminate their knowledge of the basics of Forex Trading.
This will not help you become a profitable trader. First, using too many indicators on the graph will make it difficult for you to see market opportunities.
To be successful in forex trading, it is not easy and need discipline. But we don’t need to make it more difficult than it should be with the use of inefficient and complicated trading tools such as too many indicators or the use of Forex Trading Robots.
The best tool for success on the Forex market, is a simple chart with a candlestick or bar and our own head that contains the right mindset about the market and market participants.
2. What is the right mindset in Forex Trading?
2.1. News and economic data are important for success
Not only because we need, news can also affect the currency market.
It is true that these external factors affect currency price movements, this can make it easier for us to see the market situation, which is to determine the direction of current market movements.
Most professional traders make transactions using simple trading strategies without ignoring economic news that can affect prices.
So if you want to think like a professional trader, try to find information, especially the way they analyze charts.
The information we need to know other than the graph is when do market participants focus on the market? It’s also good to know when important economic data is released, or there may be a delay.
But keep in mind that the numbers that appear are relative, not always exactly in line with market expectations, so they don’t always have a significant role.
2.2. Use all the time windows for your forex trading
Based on experience, professional traders know that there are various types of traders in different time window markets.
Who thinks like a professional, must be aware and always focus on observing the behavior of other traders through the graph, then draw conclusions as the basis for conducting their own transactions on the market.
If you want to be a Forex day trader, open and close your trading on the same day, higher time frames such as weekly or daily charts play an important role.
Don’t make the same mistakes as many other traders and are not limited to currency pairs in a single time window.
In consideration of all the important time windows of a currency pair, we get valuable information about how other traders take positions on the market, where they might place stop losses and where they might take profits.
Ask yourself, at what price level do you use at different time frames and function as support or resistance.
Follow the next tips on forex learning articles with the theme “6 Learning Tips for Thinking Like a Professional Forex Trader” Part 2.