To be honest, the answer to the question “How often do professional Forex traders trade?”, It depends on numerous situations where the traders are placed. For example, some traders will focus on investment, others on small market dynamics. We do not point to accurate statistics in this paper but give you a true mind to enter the Forex market with the right view.
Undoubtedly, one of the main changes in the Forex market in recent years is the increasing frequency of transactions. When we look at the present Charter, we see that traders who trade at high frequency have managed to make hundreds of deals a day if not thousands. It is obvious that these transactions are not carried out manually, but by algorithms and computer systems. In addition, these transactions are not enabled by the usual Forex brokers. To perform high -frequency transactions, we need more specialized equipment such as computers and much faster connections which are usually available to Forex market retailers. Such transactions are typically carried out by hedge funds and dedicated business desks.
These traders are daily Forex traders and do not seek to obtain a huge profit from a single contract, but their purpose is to make exceptional gains in hundreds of trades. For traders who work manually, you might imagine there are 20 trade during the day. Most of the time, you may be able to easily make three or five deals per day.
Trading in Forex is psychologically difficult.
It should be said that psychologically trading is one of the hardest things to do, especially when using short – term charts that raise a variety of topics to consider. It’s very simple for experienced and professional people. Nothing will help you as much as experience in trades.
the next group is swing traders. these traders are usually willing to conduct several trades on a daily basis and pause on each trades for hours and even days. For example, you may find that the AUD/ USD will be supported at a certain level. Also, you can see two hundred pip higher, there is considerable resistance. Someone who is a fluctuating trader is likely to enter the trade and keep the deal as long as it reaches the target, which may take hours or days. That’s why it’s impossible to say how much they are dealing with. The extent of their activity depends on the market conditions.
This group of traders are more likely to be in the category of investors. In the market, the traders will realize that the proceeds of the currency which they are dealing with, have an upward trend. So they decide to buy and keep them. They hold a deal for weeks and maybe months. In fact, some of them may hold special currency for years. As a general rule, every pair of currency in each trend (upside or downside) goes into two and three year cycles. Investor traders are those using such drives. It is clear that their earnings and loss situations can vary widely because they can have three hundred pip pull back for example. However, three hundred pipes in a wide – scale scheme would seem partial, but he had to believe and develop enough mental power to hold a trade as profitable as possible. These traders usually start with small positions and add to it when they see that the situation is in their favor. Therefore, the traders may be able to hold only one trade for years and add to it for the thirty – and – even forty times.
Any trader should avoid excessive trading under any circumstances.
while spread is not significant for most currencies, it is the cost of doing things. Spreads of the trading desks of the traders who use the computer to enter the positions, they tend to zero. They are working on different platforms than they are available to retailers, so the excess in trading with them is not a particular issue. In fact, it is overwhelming that they can profit more. For most of us, the more logical is to increase the productivity of each transaction rather than entering and exiting the situation.
Imagine that you want to buy the Australian dollar instead of the US dollar and the market is at 0.70. If you move on at this level and earn a profit at 0.71, You have made a hundred pipes, which is a substantial profit. However, if the trend continues to rise and you return to the trade, you may face an unnecessary pull back. In the best case, you will have to spend twice for spreads which is unreasonable. In other words, you have to hold on to a deal to hit the target or change market conditions. If you want to decide whether to stay out or get out of a trade, ask yourself, “Is there something changed about this trade when I entered it? ”
Unfortunately, many Forex traders sometimes get bored, get bored and think that they have to work on the market. If your goal is to be in the market all the time, you ‘ve found a great way to lose your money. When it comes to trading, the less you trade is better, but keep in mind that the better the situation, the more you have to trade.
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