How to Become a Forex Professional Trader? Skills, Steps and Notes!
Koki Ando
Many people want to become a professional forex trader. The right skills and planning are essential to becoming a professional trader. It is also important to know the dos and don’ts. This article explains the skills and steps to become a professional trader, as well as the key points to keep in mind. We will unravel the path from beginner to professional and show you the shortcuts to success.
This article will help you improve your trading skills and learn strategies to win in the market. We will also delve into the mindset and risk management tips common to successful professional traders to help you achieve quick results.
First, let’s gain a better understanding of professional traders.
What is a Forex Professional Trader?
There is much appeal in the term professional trader, who manages assets and makes profits in the market. So what exactly is a professional trader?
In general, a professional trader is a person who makes a profit and a living by trading as his/her main profession. Let’s take a closer look at their characteristics and annual income.
Characteristics of professional traders
A professional trader is someone who actively participates in the market by selecting profitable currency pairs or stocks and aiming to profit from fluctuating gains. Professional traders have a deep understanding of the market, think critically, and pay attention to details.
Although everyone who opens an account with a securities broker, including TreeTrader, is a trader, professional traders make a profession and primarily make a living from their trading income. As a result, they are highly professional, have a wealth of expertise, and are familiar with trading tools.
The work of a professional trader includes analyzing markets, developing strategies, documenting the details of trades, and creating relationships with other professionals. It also requires the ability to analyze, make decisions, financial knowledge, flexible thinking, intuition, patience, research and record keeping, and the ability to communicate in writing.
The world of professional traders is a very strict world where trading performance is of utmost importance. To survive in the world of probability, traders tend to adhere to trading rules and focus more on risk management and mental control than on methods.
Annual income of professional traders
Professional traders can work independently or in a firm. Annual incomes can be as high as the top. Those who work for hedge funds and other firms earn tens to 100 million yen, and some receive additional incentives depending on their performance. However, it is very difficult to join a hedge fund or a major financial institution.
The annual income of individual professional traders who trade with their own funds varies from tens of millions to hundreds of millions, depending on the amount of their own funds. However, professional traders may have unrealized losses, and a constant monthly income is not guaranteed. It is also possible to have negative income, let alone income, throughout the year.
According to a survey by indeed, the average annual salary of a professional trader is approximately 12 million yen. Although many firms offer excellent benefits, the work environment is very meritocratic, and there is a reasonable amount of stress. Annual income depends on your trading performance, your ability to choose a broker, and your ability to manage risk well. Nevertheless, there are opportunities to increase your income by improving your experience and skills.
How to become a professional Forex trader?
To become a professional trader, it is important to know the skills and procedures to climb the ladder to success. In this section, we will go over essential skills such as market analysis and risk management, as well as specific steps for learning trading fundamentals, gaining experience, and improving strategies. Let’s start by taking a closer look at the skills you need.
Skills required for professional traders
To be a professional trader, a variety of skills are required. First, it is essential to have the analytical skills to accurately read market movements. This requires an understanding of economic and financial trends and the ability to quickly analyze such information. Also important is the ability to accurately assess and properly manage risk. With proper risk management, unexpected losses can be prevented as much as possible and stable transactions can be made.
Next, the candidate must be able to think critically to develop effective investment strategies. This requires a broad economic and financial knowledge. Furthermore, the ability to make quick decisions based on the situation is also important. In order to respond flexibly to the changing market environment, one must have the self-discipline to control one’s emotions and maintain calm judgment.
It is important for professional traders to be willing to constantly learn new information and improve themselves. Skill in using a variety of trading tools and software is also an essential skill in today’s trading environment.
Market analysis
Market analysis skills are essential to becoming a professional trader. Fundamental market analysis uses economic indicators and the latest news to understand the background of the market. This requires the ability to read current events to understand how global economic and political events affect exchange rates.
Technical analysis, on the other hand, uses charts and various indicators to predict market movements. In technical analysis, it is important to be adaptable and able to appropriately use a wide variety of technical analysis tools. It also requires the ability to take into account the psychology of other traders and apply it to one’s own trading strategies.
Market analysis requires an approach from many different angles. It requires not only an understanding of economic trends, but also the ability to understand how to read charts and think about how to apply them to your own trading.
Risk management
Risk management is a very important part of being a professional Forex trader. First, set a stop loss order to limit losses. This will prevent large losses as much as possible.
Next, you will have a solid understanding of the relationship between the amount of funds and risk, the calculation of leverage, and margin maintenance rates. Once you understand these, you can properly manage your funds and control your risk.
It is also important to have the ability to create a well-balanced portfolio by considering the relationship between currency pairs and stocks. This will diversify risk and ensure stable trading.
In addition, understand the principles of money management and set a risk tolerance that works for you. It is also important to evaluate the risk and return of each trade and develop a plan to respond to market fluctuations.
It is necessary to learn how to handle psychological stress well. Since market fluctuations tend to affect our psychology, stress management is essential to maintaining calm decisions.
Risk management is an area that needs to be approached from a variety of perspectives.
Trading Review
Reviewing your trading involves several steps. First, analyze and review your trading records in detail. This will show you which strategies worked and which did not.
It is also important to compare successful and unsuccessful transactions. This will help you find what was good and what needs improvement.
When the market changes, your strategy needs to change with it. Incorporating new things you learn and skills into your trading will help you achieve better results. It is also important to learn from mistakes and losses. Understand what went wrong and develop ways to improve in order to make the most of it the next time.
Finally, review your own assessments and goals on a regular basis. This will help you move efficiently toward your goals. In this way, we will hone our trading skills and strive for better results.
Steps to become a professional trader
To become a professional trader, you need basic trading knowledge and skills. First, you will learn how to perform basic technical analysis. Learn how to utilize moving averages, interpret candlesticks, the difference between market and limit orders, how to identify trends, trend lines and major chart patterns. This knowledge will help you understand the market.
Next, use a demo account to familiarize yourself with the trading platform.
For example, with ThreeTrader, you can practice MT4 operations. With a demo account, you can experience trading without using real money, so you can improve your skills without risk.
For actual trading, it is best to start with the smallest lots. Starting with small trades allows you to gain practical knowledge while minimizing risk.
It is also important to periodically analyze your trading and review your strategy. Determining the appropriate timing for stop losses and the optimal time to lock in profits will help you build an effective trading strategy.
It is also important to learn risk management and money management techniques. This will help you master how to pursue profits while protecting your funds over the long term.
Furthermore, it is important to continuously learn and collect the latest information on the market. The more knowledge you gain about the market, the more accurate your decisions will be.
Learn the basics of trading
When you start trading, learn the basics first. Whether you trade forex or stocks, you need to know the rules and mechanics of each. With forex, for example, understand that it is a “currency for currency” transaction.
There are many different ways to trade. Learn about different styles, such as day trading and swing trading, to find the method that works best for you.
You should also learn how to read charts and learn about indicators to analyze the market. These will help you make trading decisions. It is also important to understand how economic news affects the market. Determine how news such as interest rates and employment statistics affect the market.
You also need to learn how to use the trading platform; if it is ThreeTrader, learn how to use MT4.
Trading has a psychological aspect. Learn how to control your emotions and keep your mentality strong. How you manage risk is also important. If you handle risk well, you will be able to trade consistently for a long time.
Gain trading experience
A great way to gain trading experience is to start with a small amount of money and trade in real markets. Even with little money, you can learn a lot when you experience the real market.
Trading in different market conditions gives you a variety of experiences. The market changes every day, so you can learn how to react in different situations.
Failures do happen, but it is important to learn from the experience. Look for improvements that you can apply to your next transaction. You will never know if short-term or long-term trading is right for you until you try it. Each requires different skills, so give it a try first.
Practicing with demo trades is also helpful. You can practice market movements and trading without using real money. It is also important to keep a record of your trades and analyze them. You can find and improve your trading habits and weaknesses.
Review trading and improve strategies
In order to do well in trading, you should carefully review your trades and think about how you can improve them. First, analyze your past trades in detail and compare what worked and what didn’t. This will give you an idea of what you are good at and what you are not so good at.
The market is always changing and you need to change your strategy to adapt to the changes. Incorporating newly learned lessons and techniques into your trading may help you achieve better results.
Learn from mistakes and losses. Find where you made a mistake and try not to make the same mistake next time.
It is important to periodically look back at your transactions and review your goals. This will help you see how much you have grown.
Finally, it is also important to control your emotions well. If you can control your emotions, you will be able to trade more calmly.
What to Expect When Becoming a Professional Forex Trader
While being a professional trader is an attractive profession with the potential to generate significant profits, there are some points to be aware of. Specifically, the following three points should be noted ↓.
- Time management required
- Mental management is important
- Continuous updating of information is needed.
I will explain each one in detail.
Time management required
Time management is very important to be a successful forex professional trader. The market is always moving, so decide on a time when you can concentrate on your trading. Time for rest is also important. When you are tired, take a rest without overdoing it, which is the secret to continue trading for a long time.
Watching the market all the time can make objective analysis difficult. Therefore, take time away from the market. Use this time to relax and learn new knowledge.
In addition, I set aside time to check market movements and use the rest of my time for other activities. This helps maintain a balance between work and private life.
It is also important to determine a time for trading and analysis that fits your lifestyle. If you create a schedule that works for you, you will be able to trade more efficiently. In this way, you will manage your time well and train to become a professional Forex trader.
Mental management is important
Mental management is very important for professional forex traders. Trading requires emotional control and a stress-resistant mind. It is important to always maintain calm judgment without fear of failure.
You must also be prepared to accept both gains and losses. Accept losses as inevitable and consider them a necessary expense. As a professional trader, you cannot leave your money salted away forever. We set a deadline, cut our losses once, and wait for an opportunity or look for an opportunity in a different currency pair or stock. It is also important to decide when to withdraw and the criteria for setting a profit before you start trading.
Trading always involves risk, so be sure to calculate how much you are risking. And when you experience consecutive losses or large profits, it is important to temporarily step away from the market and have time to regain your composure. By managing your mentality in this way, you will be able to trade stably over the long term.
Continuous updating of information is needed.
Gathering up-to-date information is essential to being a professional Forex trader. The market is always changing, so you need to keep an eye on the latest economic news and market movements.
For example, read ThreeTrader’s Daily Market Report to check market movements and important news. In addition, look for information on new trading strategies and analysis tools.
You should also continue to learn how economic indicators and political events affect the market. In this way, you will be on the road to success as a professional forex trader by staying informed.
Aiming to become a professional trader by utilizing ThreeTrader!
ThreeTrader is a broker that allows traders to keep their trading costs low. This feature allows traders to focus on trading without worrying about extra expenses. In particular, the Raw Zero account allows individual traders to use institutional swap points and trade under better conditions.
The Daily Market Report, delivered each morning, gives you the latest information on currency pairs and stocks. This report helps you to think about your daily trading strategy.
TreeTrader offers a points program that allows traders to cash back points accumulated based on trading volume, use them as funds, or redeem them for the latest items. This benefit is especially attractive to traders who trade frequently.
ThreeTrader offers regular campaigns that are easy to understand for both beginners and full-time traders. This allows you to improve your skills while enjoying trading.
In addition, accounts can be opened as quickly as the same day, allowing traders to begin trading quickly. This quick service is convenient for those who want to start trading immediately and is supported by many traders.
Click here to open a live account
Summary｜FX Pro Trader
In this article, we have presented the essential skills and steps to take on the path to becoming a professional trader. We also gave you some pointers on the pitfalls on the road to success and how to prepare for challenges.
Catching up on information, mental stability, and trading with a solid plan are the keys to success as a professional trader. By following these key points and taking steady steps, you too can build a brilliant career as a professional trader.
With TreeTrader, you can gain experience efficiently and effectively. Take the shortest path to becoming a professional trader.
