What Forex Strategy beats the market?

Everyone wants to beat the market on a consistent basis. Everyone dreams of becoming the next “Oracle of Omaha.” However, the reality is that most people will not be born with the mind of Warren Buffett. And even if they do, they might not have the will to go into finance or forex trading and develop a solid forex strategy. That said, there are ways for you to still be better than the average. The most important of these multiple ways to improve your trading is to start acting like professionals. This small guide will give you an inside of how the mind of a trader works.  

Professional traders do not get in their own way

Any trader worth their salt understand their mental weakness and strengths. Furthermore, they understand that some aspects of their personality are not compatible with creating a successful forex strategy. What we mean about that is that they do not engage in over-trading, gambling in the market, being afraid to enter a trade, being greedy, or revenge trading to name a few. Furthermore, they also understand that day-trading is something you dwell into once you have had a deep understanding of forex market. The reason for that is because professionals understand that patient is key. Thusly, professionals do not think about needing a trade, but rather looking for a present market edge that they can exploit. If that trade is there, then they will set a position. Otherwise, they will keep waiting. Remember, making money is just a by-product of executing a well-designed forex strategy.

Professional traders set their edge

Sometimes the perfect opportunity is not always as clear-cut as an obvious price pattern or an Exponential Moving Average (EMA) crossover. Sometimes you have to a combination of technical and fundamental knowledge to sense when the market is ripe for entry. Sometimes that means entering a young rally, and others entering a late rally. Professionals are not afraid to get into the market when others are running away. That does not mean taking extra risk, but understanding that not all trades last for as long as people usually think they do. You have to develop cold-blood and mental strength in order to remain calm while the amateurs around you run in panic. A good metaphor is a crocodile. A crocodile is a fine tuned predator that carefully wait for their chance to catch their prey by using the least amount of effort as possible. And it is by displaying this level of efficiency that you will start to set your own edge.    

Professionals have a capital management plan and value studying

Lastly, professionals are always aware what to do if they are losing money. They get the value of capital preservation. Moreover, they have a proper exit strategy for every trade they make. Furthermore, they are aware of correlated markets and how to hedge if you trade in them. They also keep close track on market volatility in order to adjust their stop loss accordingly. They have a forex strategy for every scenario they have faced and could face again. But most importantly, they never stop studying. The market is an ever changing beast. Professional traders and never satisfied with their level of knowledge and so should you. Constantly learning will make the other steps easier to apply. And once you start to think and act like a professional, you will never return to your amateur roots on anything else you do.