Hi traders, Hiro is here.
How’s your trading going on?
Today I want to share you guys how successful traders do the mindset and what things they care about.
It is said that traders who can keep winning in the financial market are only 5% of all market participants.
Then, what is the difference between 5% winning traders and other 95% losing traders?
I have met so many traders in the world, and there are specific reasons why successful traders are able to keep making profits constantly.
This time, I am gonna talk about this in detail.
1. They know where to take profit (or loss cut) before they do the entry.
I think most of the traders who lose their money in the financial market decide where to take profit and where to stop loss after they do the entry.
But pro traders never trade like that.
What’s the most important thing which you have to care when you do the entry is “RISK REWARD RAITO” of the entry.
In forex trading, the risk-reward ratio is often calculated by pips. just like this ↓
The risk-reward ratio of this trade is 1:3. If I talk about my trade, I only do the trade when the trade has more than 1:2 risk-reward ratio.
If you are not sure how much risk and reward your trade has, then you should not do the entry.
Anyway, I am gonna talk about this more detailed in another post like “how to decide where to TP and SL like a pro”.
Please look forward to it.
2. Successful traders are not very confident about their trades.
The not very well known mistakes which a lot of traders have been making is this.
95% of traders always try to make profits by guessing the future price momentum completely. But actually, this way of thinking is the worst in the market.
There is nothing such a “completely” or “certainty” in the financial market, okay? The market is always an uncertain thing.
You need to have an attitude to accept that fact. you know, traders who never lose by trading don’t exist in the world.
Anyway, what I want to say by this is,
“Don’t expect too much about your trade”
It is really important to be ready for having loss traders so that you never lose your mentality during trading.
But, even I say “Don’t expect too much about your trade”, I am not intending that you can use any trading strategies even it is not proven as a profitable strategy.
I really don’t want you to do that. Please always trade with well-tested trading logic otherwise you will end up losing all money in your deposit.
3, They use the chart as a map to spot where other trader’s orders are placed.
A chart is an essential tool for any online traders.
but there is a difference on how to use chart between successful traders and unsuccessful traders.
Especially, unsuccessful traders use the chart only to plot some indicators and guess the next price momentum. They actually don’t care about how market psychology is working in the market.
But successful traders don’t do like that. What they really care about is where other traders do the trade or not.
Once a lot of other traders start to move in a certain direction at once, what successful traders do here is just to follow that momentum.
So, they use a chart only to identify where and when that momentum is gonna happen.
All needed information for this will be given by candlesticks and waveforms that candlesticks consist of.
4, They really understand well how human psychology works at the financial market
To analyze the real-time market situation, the concept called “market psychology” is really essential.
Most of the successful traders are an expert in this market psychology.
Where and when other traders will be taking the trades and how they are feeling in the situation.
I will explain about market psychology in detail in another post as this topic is a super deep subject which is hard to explain with short sentences.
5, Basically, they don’t use technical indicators. They analyze the market by the naked chart.
In my experience for several years as a trader,
A lot of unsuccessful traders always tend to plot a lot of technical indicators as much as they want in their chart.
On the other hand, most of the successful traders I have been met are really hating to plot technical indicators because it just kind of obstacles makes hard to watch the chart, they say.
Before you use any technical indicators, you have to know that all technical indicators are made from the information of candlesticks.
It means you can get everything you need to know to be successful at the market from the candlestick.
If you can master how to read candlestick correctly, you don’t need to plot any fancy technical indicators anymore.
Okay, that’s it.
There are definitely obvious differences between successful traders and unsuccessful traders, I can say.
By knowing what points successful traders are different from you, you can improve your trade style and attitudes towards the market.
I hope today’s article will help your trade a lot.
If you have an interest, I recommend you checking other posts below too↓↓↓