Professional forex traders really trade.
Professional forex traders really trade.
To be honest, the answer to the question “how often do Forex professional traders trade?”. It really depends on the underlying situation. For example, some traders focus on investment while others focus on micro movements. This article cannot provide exact numbers. But it can give you an idea of what is realistic, when you enter the world of Forex trading.
In addition, this is not done by the “expert advisors” that you find online for the Metatrader 4 system. These are highly specialized equipment, using computers and faster internet connections. Usually, this is done by hedge funds and banks and maybe a proprietary trading table. These traders, and don’t want to generate much from the trade, but produce lots of hundreds of trades.
Forex Day Traders
For daily traders who work manually, you might be looking for more than 20 trades a day. However, not all days are the same, and some days will not offer many opportunities. Most of the time, you might be able to find 3 to 5 trades quite easily.
Therefore, daily trading may be one of the most difficult things to do. Especially in short-term charts, because it is a number of new problems from a psychological point of view. This is usually done by professionals and with a number of extreme experiences. Nothing prepares you more than experience. To jump on the five-minute chart immediately is the way for margin calls.
Swing Forex Traders
The next trader is a swing trader, or an intermediary trader. These traders tend to trade almost every day, and usually rely on trading for several hours, if not days.
For example, you might realize that the EUR / USD pair has a significant amount of support at a certain level. You also realize that 200 pips above, there is a large amount of resistance. Someone is an intermediary trader and only lasts until we reach the target. That can be several hours, or several weeks. Medium and specific targets, not necessarily time frames. Because of this, it is difficult to measure exactly how much they trade. It depends on market conditions, but it will be true with all these traders.
(Investor) Long Term Forex Traders
Another group of traders, along with the investor line. These are traders who recognize the currency they are trading in an uptrend, and they buy and hold.
These forex traders will often survive in trading for weeks, if not months. In fact, some traders have a lot of money for several years. As a general rule, a cycle of 2 to 3 years on each trend, so this is trying to take that movement. Obviously, the change in their profit and loss situation is quite drastic, because they can have a pullback of 350 pips for example. However, 350 pips pull back, but you must have confidence and you must have the strength and the mind to trade. These are traders who will take positions on trade jobs that benefit them. So in that case, they might have one trade for two or three years. But the fact is they can add 30 or 40 times as an example.
You should avoid all overtrading costs. Although spreads are not large for most currency pairs, that is the cost of doing business. The altar is short, the provisions of traders are spreads as close as possible to zero. They trade on completely different platforms and dark retailers, so for them overtrading is as big as the problem. In fact, it’s actually the way they make money. For all of us, it makes sense to maximize the efficiency of each trade, which means not jumping in and out of the same trade.
Take for example buying Australian dollars against USD at 0.80. If you follow this level, and make a profit and 0.81, you have earned 100 pips, which is a pretty good trade. However, if the trend continues to rise and you re-enter trade. You may have to deal with unnecessary pullbacks. At best, you pay spread twice, something that doesn’t make sense. In other words, you must be in a trade until you reach your target. Or something has clearly changed in the market attitude.
Unfortunately, too many Forex traders, (and I am willing to admit myself sometimes), get bored occasionally. And start placing forex trading because they feel they have to be on the market. That’s a great way to lose money, if that is your goal. However, there is a little more in terms of trade. The better the arrangement, the more you have to trade it. Others who are “so-so” are what you have to leave alone. In short, the less you trade, the better you usually do. Of course that is somewhat counter intuitive but something I’ve learned over the past 12 years.