How to Become a Professional Trader
In the world of trading, traders must also listen to advice from experts or those who are experienced because this is very important. Suggestion is a solution aimed at solving the problems at hand. Suggestion is someone's opinion on something that is being discussed. Suggestions are usually also used as a means to solve problems. Suggestions are aimed at something less good to make it better. Here are tips to become a professional trader:
Manage Margin No More Than 20% Per Trade
Margin is a term used in the financial world to indicate a guarantee that must be placed by the holder of a position (sell or buy) in trading securities, options, or futures contracts in order to protect the credit risk of the counterparty (counterparty).
Well, in this advice, traders should avoid opening positions using margins above 20%. In accordance with the principles of trading in the futures market, traders can use Margin below 20%, so that the rest can be used to hold losses (losses) when the price of the pair that the trader is trading moves in the opposite direction that the trader expects or analyzes. As a novice trader, traders should not be too eager when they see a large profit potential, so they decide to set a high margin. Trading futures is highly believed to be a transaction with a High Risk High Return: the amount of profit is proportional to the amount of risk. Trading with moderate but consistent results is certainly better, than making a big profit in one day, but then experiencing more severe losses afterward.
Wise Use of Stop Loss
Stop Loss is the lowest price limit value determined to limit losses. When the price movement touches this value, the system will automatically close the order or position. For most traders, the decision to place a stop loss is an uncomfortable choice.
Stop Loss Can Be Done in Two Ways:
- Manuals. Here the trader closes the trading position manually.
- Automatic. With the sophistication of existing online trading software, stop losses can be done automatically. Traders just set the criteria for the desired stop loss position, and then it can be left. Later the software will run the stop loss when the specified price level is reached.
For novice traders especially, trading advice with the use of stop losses. Because if it is ignored, the loss received can be beyond expectations. Even so, some traders who have gone before, usually dare to hold a Loss position for a long time in the hope that the price will reverse direction. In fact, this kind of trading will tend to destroy the beginner's account because there is no risk limit. No matter how sophisticated the trading strategy used, traders must still determine Stop Loss as early protection.
Don't Prioritize Emotions
Emotions are intense feelings directed toward someone or something. Emotions are reactions to a person or event. Emotions can be shown when feeling happy about something, angry at someone, or afraid of something.
This is what underlies the need to separate emotions when trading. Why? Avoiding emotional trading decisions and trading only following a predetermined strategy is the key to profiting in the market. Following the emotions and desires of traders is not a profitable way, it can even drain a trader's account.
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