We all hope that one day we can be considered an expert trader. Being an expert will mean that we know exactly what we’re doing, we know how to profit and we know how to remain safe as a trader. We all want to get there but it doesn’t happen overnight, it takes time and we will slowly start to see signs that we are on the right track and that we are slowly becoming expert traders. So let’s take a look at some of the signs that we may see that will show us that we are becoming expert forex traders.
Profits are not your main priority: When new traders start, there is normally just one thing on their mind, how much money they can make and how they are going to make it. Money is the main driving force behind their desire to trade and it is what will motivate them to learn and trade. For an expert, that priority will begin to shift, you will start to focus on securing and protecting what you already have over making more profits. You will understand that it is more important to stay in the game than to make profits, and you will focus on keeping what you have and adding to it rather than placing too many risks.
You are naturally looking at the news: Looking at the various news sites and economic calendars is not really something that newer traders do, yet when you are becoming an expert trader this should be something that comes very naturally to you. The start of each day, the evening before, anytime is a good time to check the news and the economic calendars. It can provide you with a lot of information. Eventually, you will do it naturally without even thinking about it.
You follow your rules perfectly: The trading plan that you have created will have a number of different rules setup, these rules are what tells you what you should be trading and when. When we are new we will still get some of them wrong, meaning that we will be placing bad trades. But as we grow as traders and move more towards the title of an expert trader, we will begin to reduce the number of times that we go against them, when we no longer make mistakes surrounding the rules, we can consider that part of our training to be at an expert level.
You maximise the profits on each trade: Sometimes it is not about placing more trades, for many newer traders we see the profits and so close the trades for that profit, only for the market to continue in the same direction. An expert trader will capitalise on this, if a take profit level is set, based on further analysis this can be moved further, you can also use things like trailing stop losses that can help you to maximise profits a little bit more. You will now be trying to squeeze out more from each trade rather than placing more trades.
You no longer blindly follow others: When we start out trading, we don’t really know what we are doing, due to this, we often take the words of others with a little more attention, often we will simply place trades because someone that we think is an expert has placed them without really knowing why they have been placed in the first place. Instead, we no longer blindly follow others now, instead, we make our own trades, or if we do take another’s trading idea, we know why they are trading it and have a full understanding of the trade before we place it.
You find your exit point before placing a trade: When we start all we really think about is the entry, how do we get in, we will then think about getting out once we are in profit or loss. This is simply not what an expert would do, instead, we can sense that we are on our way to becoming an expert when we start to think about the exit point before the trade is made, sometimes before the entry point is even decided. The exit point is what will make our profit, but also to protect the account, so it is vital that we know where this will be before we place the trade.
You no longer dwell on negative days: We all hate bad days, we all hate negative trades. What we often do is find it hard to move on, those negative days or trades stay in the back of our mind, maybe we go to sleep thinking about it and wake up with it fresh in our minds, this can then influence our next day’s trading. An expert trader will not do this, they will accept that the losses were there and that they happen. You now need to move onto the next trade without thinking about the loss anymore, this way an expert trader will not be influenced by their previous losses.
You understand that not having a trade can be a good thing: You do not always need to trade, for a new trader you want to be trading all the time as that is how you make money, what they do not seem to understand is that not having a position is still a position. If there are no good opportunities for a trade, you should not try to force one, instead, you need to be patient. Not having a trade is keeping your account safe from losses, so as an expert you understand this and are happy to sit and wait for the right opportunity to arrive.
You still understand that there is still a lot to learn: You can never know everything, in fact, you can never know a lot, new traders may get the basics and then stop learning, but an expert will do the opposite. An expert will know that there is always more to learn, so much so that they spend a lot of their time still learning. New strategies, new assets or currencies, pretty much every aspect of trading has an unbelievable amount of information that is constantly evolving… So a sign of becoming an expert is the fact that you are able to continue to learn and still have the drive to continue to learn.
You never trade without a stop loss: Stop losses are there to protect your account, you should be using them with every trade. New traders don’t always use them but if you want to be considered as an expert trader, then you need to use them with every single trade, it is as simple as that.
You no longer dream about your trades: A weird one no doubt, but when we first start out we dream about our trading, we dwell on our losses and they often affect our dreams, or we dream of placing that one amazing trade that makes us rich. As an expert, you don’t really have these same dreams, your trading stays with your trading, when you step away from the trading terminal, your thoughts of trading do not come with you and so when you dream, you no longer dream of your trading.
So those are just some of the signs that will help to show that you are becoming an expert trader. There are of course other things and we have to ask ourselves how we would actually define an expert trader. You can never be perfect, but you can certainly start to do things a little more naturally that are in line with your strategy, that protect your account and keep you updated, as long as you are trading well, you can be considered an expert trader.