The world is changing fast and we are too. People used to enjoy an average lifestyle but nowadays, technology has created the scope for everyone to dream big. You might be poor as a kid but if you die as a poor person, it’s seen as your fault. You have to work hard and take intelligent decisions in life to make yourself a better trader. Without working hard and having a strong passion, it’s not possible to pursue your dream. So, how can we become successful people in real life? Well, if you are good at trading, you can become a multimillionaire within a short period. You can live your dream life.
To be a multimillionaire trader, you have to study the professional trader portfolio. Thousands of traders in England are living a life based on trading. Let’s explore the benefit of studying the portfolio of a successful trader.
The approach of the professional trader
The first thing you can learn from the portfolio of a successful trader is the approach. Every novice trader has a very aggressive approach. They are always trying to win big trades even though they know nothing about this market. On other hand, elite traders have a very unique approach to their trading method. They take very small risks in the trades and they are well prepared to accept the losses. The fact they are ready to lose money from the trade proves that they are skilled at analyzing the key dynamics of the market.
Average holding period of the trade
The scalpers are always trying to make a quick profit from the market. But the smart investors at Saxo exit the trade when they find a logical reason. Every smart trader has an average holding period for the trade. Being a new trader, you will notice that you don’t have such an average hold period. Knowing the average holding period of each trade gives you a great advantage. It gives you the confidence to hold on to winning trades for a longer period. People often ignore the importance of riding the trend. But this is a very effective way to make big profits. Studying the portfolio of a successful trader will show how they ride the trend.
An advanced method of managing the loss
As a new trader, we increase the risk when we face some losing trades. On the other hand, the historic data of the professional traders shows the opposite picture. They decrease the risk and try to aim for a better risk-reward ratio after a few losses. This unique method of scalping the lot size and improving the risk to reward ratio is a proven technique to survive in the currency market. Without having a deep understanding of the risk management factor, it will be very hard to improve yourself as a professional trader. So, try to limit the risks and trade the market with discipline.
Average pips win per trade
This is the most important data that will change your mind. If you take a look at the elite traders, you will notice the average pips win of a trader is always bigger than the losers. They know the risk exposure management depends on the risk to reward ratio. So, if you average the winners it must out weight the losses. If it doesn’t, you don’t have a good trading method. A trading system that can generate a 90% profit is not all good if requires to risk more than 4% of the balance. The amount of risk you take per trade shouldn’t be less than 2%. Most importantly, you must have the unique ability to take the trades with a mindset that you can lose money. By studying the frequent losing trades from the portfolio of a successful trader, you will get the courage to deal with losing trades.