Differences between a beginner and an expert FOREX trader
You, as a FOREX trader, are going to be passing through 2 stages of your career. One of them is when you are a beginner and the other one is when you became a professional and experimented trader.
It is going to be a long way until you get to be a professional trader, and if you are a professional trader, I bet you remember how it used to be a beginner in the market.
There are many differences between a beginner FOREX trader and an expert FOREX trader, and you are going to know each one of them.
Forex (Foreign exchange market)
It is known as FX, currency trading or foreign exchange market. It is a market that is decentralized and global, which means that you have the ability to trade currencies from around the world.
It has become a great way to manage and earn your money throughout the years, and it is undoubtedly one the most liquid financial market in the world of exchange.
Also, once you learn to trade, you can trade your currencies in the value you think is the right value; of course, once you have a good trading strategy.
Now, let´s get to know a little bit what a beginner in the Forex market is and what is a professional FOREX trader.
The Forex beginners are just inexperienced people that are starting in what is called foreign exchange market.
The most notable thing about them is that they don´t have a trading strategy and they are commonly making many mistakes as they learn.
Here, you can find some good and bad characteristics of a Forex beginner.
- They don’t have a trading plan: a beginner usually starts without a plan. In fact, a trading plan is something crucial when you are trading, but it is something that you can acquire through the practice in the broker of your preference.
- They don´t have an established broker: this happens because they are barely learning what broker is the best for them and that takes time of trading in different brokers and time reading different reviews that match what they are looking for.
- They never trade too much money: that is something quite obvious; the fact that you are inexperienced in the market is a huge signal for you as a beginner not to trade too much money, and this way, you are not going to have bigger losses.
- They don’t know how to use the trading psychology: maybe they don´t even know what the trading psychology is or should be. The psychology is fundamental in the trading world and that includes the Forex market.
The trading psychology is one of the most important disciplines that requests to be studied and understood by anyone who is trying to be successful in the financial market. The trading psychology consist in the management of all the feelings that can affect a trading strategy and the mental health of the trader, for example: fear, euphoria, and panic.
Forex Professional traders
Clearly, the FOREX professional traders are the opposite of the beginners.
They are established traders that usually know what they doing and in fact, have many differences with the beginners.
- They have a trading plan: The trading plan is something fundamental in the world of a trader and when you are a professional trader this is something you already have developed.
- They trade in just one broker: this is the best part of being a professional, because once you are established in one broker, you can invest time on it. This is going to bring multiple profits to your life as a trader.
- The money they invest is bigger than the capital of a beginner: once you learn to trade, you are able to invest more money since you already know the market and how everything on it works.
- They apply the trading psychology: the only way to get that far is to apply a trading psychology; this is going to keep the professional trader in a state where he can handle many situations without freaking out and not making any loses.
The Forex market is a place where you need to be a smart person to make profits. You need to know a little bit about everything to be a good trader.
It is fundamental to invest time and money on it; that is the only way to make profits and see the benefits of working with it.
The way from beginner to professional can be a little frustrating sometimes, but at the end is going to bring you joy and money, especially because you are earning money in a good way from your house.