Skilled forex traders need sophisticated trading instruments and a robust mindset. Yet most retail traders do not get there alone. Training courses, mentors, and online coaches all help to provide guidance, tips, and secrets in the search for that big salary. We’ll explore how to become a professional forex trader in this article, including platforms, strategies, and psychology.
What Is An Expert Forex Trader?
Professional forex retailers seek to produce income by speculating on the foreign exchange market. A couple of distinctions are to distinguish the expert from the novice. Firstly, a professional’s earnings are likely to be bigger and the primary source of income for the trader. Additionally, the psychology and trading methods that professionals use are typically more sophisticated than those that beginners employ.
How to Become a Pro Forex Trader?
Now that we discussed what a successful forex trader is, what steps do you need to take to become one of those?
1. Set Realistic Goals
Professionals also set targets that can be met and quantified. For instance, make a return on investment of 15 percent, produce a profit of $25,000, or gain 50 pips a week. Having said that, the main targets should be set in the longer term, such as a year, because results and income can differ from month to month.
A professional forex trader’s main characteristics include being practical, too. They know that if they just have a few thousand to invest, even with leverage, they won’t generate a salary in the millions. They also ensure the size of their trades represents how much they are willing to lose, keeping a handle on overall exposure to the risk.
Once you have clear goals, you can look at the strategies and instruments you will need.
2. Strategies for Testing
Being a skilled forex trader needs advanced techniques to be used with caution. But a common misconception is that only complex methods are used by the professionals. In reality, many serious revenues are using simple systems, like the ones below.
To become a professional you need to have excellent technical analysis. Most top performers focus on analyzing price patterns to identify market trends and capitalize on that. People often ask though, do you really need to use indicators? Some experts claim that metrics make the charts and decision-making overcomplicated. Instead, the pros are attempting to minimize distractions, focusing only on the alerts and tools they need.
Many who ask, ‘How do pros trade?’ may be shocked to learn that a lot of people don’t rely heavily on market news. Yes, fundamental news can direct price, but the challenge is to predict when, and to what degree, the market will respond. Therefore many pros use fundamental analysis to supplement their technical research.
A lot of professional forex retail traders don’t rely on automated algorithms. I know such programs are still not robust enough to respond to rapid swings in the market. Rather, their market aptitude helps them to stay competitive when faced with shifting market conditions.
3. Never Pause Learning
A professional forex trader’s life doesn’t have to be solitary. Some of the practitioners are leveraging the tools around them. That could be getting tips from those in their network or from the social platforms for copying. It might also mean reading books, and getting mentor coaching.
Coaches & Mentors
Professional advice can prove useful through an online trainer or mentor. Often people opt to do it alone and constantly make the same mistakes. Whereas if you hire a professional forex trader, errors are often spotted quickly, and bad habits are coached out. The right mentor will essentially shorten your travel to become a well-skilled trader.
The problem is that there is a host of mentors and coaches parading online as experienced investors and educators. And when you recruit a professional forex trading mentor what do you look for?
- Trading strategy – The best online mentors and coaches will develop a program that will meet your investment goals, risk tolerance and lifestyle requirements.
- Ongoing help – You will have a lot of questions, understandably. Avoid coaches who are only willing to give you a morsel of their time and are unable to respond to queries.
- Personalized preparation – A good trainer would value your style of trading. Their coaching should also be tailored to help cultivate the right mindset.
- Secure space – The ability to conduct trade in a safe space is one of the benefits of finding competent forex counsel. There will also be live tutorial metrics and techniques from a good coach to help boost your results.
Professional Forex Trader Courses
Online courses can also be an successful way for novice forex traders to learn from professionals. But with so many courses in stock, what are the main features to look for?
- Up-to-date – Training should teach you the latest technical advances in tools and platforms for the trade.
- Professionally led – An online trading academy will also use a skilled forex traders library to deliver its content. Look for courses with knowledgeable and enthusiastic teachers.
- Quality, not quantity – If part 1 of a course is riddled with simple errors and technical problems, it is definitely a sub-par program. You’ll know more than hundreds of hours of mediocre material from a few high quality sessions.
- Engaging content – The best forex courses online keep users engaged. Real-time demonstrations and an opportunity to ask questions will help keep a course lively.
- Outcome – Make sure the course produces the outcome you are looking for. For example, are you looking for a place to test new techniques after qualification or do you want to interview experts on the metrics and methods to use?
Platforms for Forex Professionals
The professional forex trader is acutely aware of the importance of selecting a top platform for trade. The platform’s suite of tools, sector reach and reliability can all lead to overall success as your gateway to the currency market. And, every edge counts in a market where margins are small.
Today the aspiring skilled forex trader has a choice of multiple platforms, some of which are listed below. Please note that these are general tips for the platform – all traders need to study individually and select a platform that fits their needs.
The most popular choice among forex professionals is the MetaTrader 4 (MT4) platform. The flexible interface and extensive tool range make it a fantastic choice. The software is home to over 2,000 custom indicators, one-click trading, nine different timeframes, economic calendars and real-time news from the market.
The industry-leading forex platform does have some drawbacks, however. First of all, some professional think it is slower than other options. Some brokers, like EuropeFX (read review here) also offer wider spreads on their primary platform than the ones on the MT4.
FXCM’s Trading Station platform is another top supplier to retail forex professionals. The system offers advanced charting capabilities, an array of indicators, and automation of trade. The platform can be downloaded via web or on both desktop and mobile devices.
The ZuluTrade platform is a good choice for automated investing strategies. It is also an influential social space, ensuring that the metrics and techniques used by retail forex professionals from around the world can be interacted and copied.
Via its Strategy Builder the NinjaTrader platform provides customization. The trading tools Market Analyser and Market Replay also allow you to check strategies on recent market data. The strong and user friendly platform should fulfill most skilled traders’ needs.
Professional Forex Trader Psychology
One of a competent forex trader’s distinguishing features is their mentality. You’ll often find the top performers share similar characteristics:
- Discipline – Whether you are a professional stock trader or forex swing trader, high performers know when tactics don’t work and don’t succumb to emotional stimuli like fear or greed.
- Risk mitigation – Professionals understand each trade’s risks and rewards – regularly using warnings and resources to reduce losses from risk management.
- Confidence – The professional forex retailer dares to work differently, check and make new investment techniques.
- Awareness – Pros can, to some degree, calculate how expectations affect patterns in the market.
While the professional mindset may come naturally to some, training and experience usually take years.
How Much Does a Professional Trader Make of Forex?
The qualified forex traders gain revenue varies, and a regular wage is scarce. One month’s earnings can be several thousand US dollars while you will see yourself having no income next month. That said, many plan to make a profit of 20 percent over the year.
How much a retail trader makes depends on the money available to them, too. For example, a return of 20 percent on a $50,000 pot would give you $10,000 in income, while an income of 20 percent on $200,000 will give you $40,000.
Professional forex traders never stop learning – explore new strategies and platforms, invest time in online training and courses and develop a robust mindset. Use this article for guidance if you’re trying to figure out how to become a qualified forex trader and secure a big salary.
- What's a pro forex trader?
A professional forex trader gets income from currency market trading. Unlike beginners, FX market earnings tend to be the prime source of professional profits.
- How much do professional forex traders make?
How much experienced forex retail traders make differ. Good pros may be looking for a return on their resources of 20 percent, but many professionals will still lose money. The more money experienced forex traders need to invest, the greater the opportunity for profit.
- How long does it take to become a pro forex trader?
How long it takes to become a qualified forex trader varies from one person to another. It can take several months for some, and many years for others. Professional forex traders never stop learning though. They are actively looking to develop trading techniques and methods for market research.
- How do I become a successful forex trader?
You'll need to take a range of steps to become a successful forex trader. Firstly, you need to set reasonable income targets based on how much money you need to invest and how long you need to invest. To find a style that works for you, you will then need to learn and test techniques, hopefully with the aid of online coaches and social trading platforms. The top pros are now signing up with the best brokers to ensure they have outstanding platforms and resources available to them.
- What brokers do professional forex traders use?
Depending on your individual preference, skilled retail forex traders use a number of brokers. Some of the popular options are Oanda, IG, FxPro, and IC Markets.