PROFESSIONAL TRADING STRATEGIES - One Good Trade at a Time
The complete guide to professional trading strategies will reveal how to trade against the crowd and become a professional trader. The most efficient professional trading techniques used by hedge fund traders, bank traders, and prop traders will be outlined through this guide. Once you read them, you’ll have an AHA moment.
Trading is more than just slapping on a few keyboards or using your favorite support and resistance indicator. Professional traders do more than just that as they well-know this business requires time, effort, and the right professional trading tools to succeed.
There are no shortcuts if you want to trade like a professional trader.
The good news is that these professional trading techniques can be learned. You don’t need to have a special talent to become a professional trader, but you need to have the right mindset and an actually proven edge.
So, if you want to know how to trade like a professional trader, we’re going to coach you in the right direction.
Let’s get started!
Table of Contents
1 Becoming a Professional Trader
2 How To Trade Like a Professional Trader?
3 Tools That Professional Traders Use
4 Professional Trading Strategies
4.1 The 80 – 20 Trading Strategy
4.2 The Holy Grail Trading Strategy
4.3 Three Little Indians Trading Strategy
5 Final Words – Professional Trading Techniques
1 - Becoming a Professional Trader.
Professional traders aren’t born, they are made!
And, here is my proof…
Legendary trader Richard Dennis, who turned $1,600 into a $200 million fortune has successfully taught a group of traders known as The Turtles. With the Turtle experiment, Richard Dennis proved that anyone can learn how to be a professional trader.
Let me tell you a secret…
Most hedge fund managers, bank traders, and institutional traders learned to trade profitably from another successful trader. There are a few exceptions that are self-taught professional traders, but these only confirm the rule.
Learning to trade like a professional trader doesn’t mean working for a financial institution or trading large amounts of money. A professional trader is someone who over a period of time, has proven he or she can beat the market on a consistent basis.
Secondly, you need the winning mindset of a professional trader.
Now…
If, you might be wondering…
Here are a few characteristics of the mindset of a winning trader:
Pro traders are comfortable taking calculated risks.
Pro traders are self-disciplined traders.
Pro traders know how to leave their own personal opinions at the door.
Pro traders don’t take losing trades personally.
We can definitely add more things into the above list, but most often these are the things amateur traders can’t overcome.
Moving on…
Let’s see some of the professional trading techniques in action.
2 - How To Trade Like a Professional Trader?
According to Brett Steenbarger, Ph .D. Author of The Psychology of Trading and a performance coach every elite trader can be characterized through 6 qualities. You can learn how professional traders trade by emulating these traits:
Ability to sustain focus (pro traders are either fast thinkers or deep thinkers).
Originality and creativity (while pro traders may use some well-known trading strategies, there is a uniqueness to how they execute that strategy).
All pro traders have learned from a mentor or other professional traders.
Emotional resilience (treating losses as a learning opportunity).
Attention to the details.
Always working to become better at this game.
So, professional traders derive their edge from all of the above-highlighted points.
However, we have kept the best professional trading techniques for last.
First, the world’s most talented traders are good at exploiting their edge.
What do we mean by this?
Simply put it, they are able to recognize what are their strengths and weakness are and then capitalize on those strengths. In other words, a pro trader is doing more of what works and less of what doesn’t work.
Let me explain…
For this, we’re going to assume that pro trader A from hedge fund ABC has identified that most of his profits come from scalping the stock opening bell. On the other hand, he also noticed that he is doing a terrible job trading breakouts.
Now, a professional trader will maximize his strengths by trading bigger sizes on the opening bell. And, at the same time, he will avoid trading breakouts.
Other professional trading techniques used by many pro traders are to take one good trade at a time.
While all the tools that the professional trader uses are equally important if we were to pick just one rule, this would be:
One good trade at a time followed by another one good trade.
In his book “One Good Trade – Inside the Highly Competitive World of Proprietary Trading,” Mike Bellafiore explains the characteristics of a good trade.
One good trade is a trade that strictly follows your setups and your plan.
Let me explain…
If you followed your plan, whether the trade yields you a profit or a loss, then that’s one good trade.
In other words, the inner workings of a good trade follow the trading rules you have set in place.
Of course, if you don’t have an edge, you can follow your trading rule as much as you want; they will produce the same type of results.
So, the first thing you need is a profitable trade setup that you know it works.
Moving on…
We’re going to share some of the tools that professional traders use.
Hint: It’s not what you think.
3 - Tools That Professional Traders Use.
The reality is that professional traders don’t gain their edge from special tools or special technical indicators. Most of the professional traders use the same trading tools that are available to retail traders as well.
So, if there are no professional trading indicators how come a professional trader can make money using the same trading tools as you do, but you still can’t seem to find any type of success?
Well, it all comes down to how you use professional trading tools.
A professional trader can take the Relative Strength Index ( RSI ) indicator and use it in a very unique way. This type of unconventional thinking is another trait of a professional trader.
Check out some professional trading techniques that have an unorthodox approach:
Best Average True Range Forex – An Unorthodox Approach
How to Trade The London Breakout Strategy With One Trick
Breakout Trading Strategy Used by Professional Traders
Hedge Fund Strategies and Tools Used on Wall Street
Secondly, you’re probably using indicators the wrong way.
The problem with indicators is not that they don’t work, but with the fact that you use them in the wrong way.
Let me explain…
We’re going to uncover the most common mistakes you’re doing when using technical indicators:
Using indicators in the wrong context.
Using indicators with the wrong settings (i.e. Trading short-term time frames with long-term settings).
Moving on…
We’re going to share with you some professional trading strategies used by top market wizards.
Professional Trading Strategies
Note* Some of the professional trading strategies outlined through this section can be found in the book “Street Smart” by Linda Bradford Raschke and Laurence Connors.
Moving forward.
We’re going to share with you some professional trading strategies used by top market wizards.
We’re going to share 3 professional trading strategies that work and give you some hints to pick the one that fits you.
Here is the list of what we’re going to write:
80-20 strategy for day trading like a pro,
The Holy Grail trading strategy (suitable for any market and TF).
Three Little Indians trading strategy (catching trend reversals like a pro).
My next posts will be these strategies.
Trading is more than just slapping on a few keyboards or using your favorite support and resistance indicator. Professional traders do more than just that as they well-know this business requires time, effort, and the right professional trading tools to succeed.
There are no shortcuts if you want to trade like a professional trader.
The good news is that these professional trading techniques can be learned. You don’t need to have a special talent to become a professional trader, but you need to have the right mindset and an actually proven edge.
So, if you want to know how to trade like a professional trader, we’re going to coach you in the right direction.
Let’s get started!
Table of Contents
1 Becoming a Professional Trader
2 How To Trade Like a Professional Trader?
3 Tools That Professional Traders Use
4 Professional Trading Strategies
4.1 The 80 – 20 Trading Strategy
4.2 The Holy Grail Trading Strategy
4.3 Three Little Indians Trading Strategy
5 Final Words – Professional Trading Techniques
1 - Becoming a Professional Trader.
Professional traders aren’t born, they are made!
And, here is my proof…
Legendary trader Richard Dennis, who turned $1,600 into a $200 million fortune has successfully taught a group of traders known as The Turtles. With the Turtle experiment, Richard Dennis proved that anyone can learn how to be a professional trader.
Let me tell you a secret…
Most hedge fund managers, bank traders, and institutional traders learned to trade profitably from another successful trader. There are a few exceptions that are self-taught professional traders, but these only confirm the rule.
Learning to trade like a professional trader doesn’t mean working for a financial institution or trading large amounts of money. A professional trader is someone who over a period of time, has proven he or she can beat the market on a consistent basis.
Secondly, you need the winning mindset of a professional trader.
Now…
If, you might be wondering…
Here are a few characteristics of the mindset of a winning trader:
Pro traders are comfortable taking calculated risks.
Pro traders are self-disciplined traders.
Pro traders know how to leave their own personal opinions at the door.
Pro traders don’t take losing trades personally.
We can definitely add more things into the above list, but most often these are the things amateur traders can’t overcome.
Moving on…
Let’s see some of the professional trading techniques in action.
2 - How To Trade Like a Professional Trader?
According to Brett Steenbarger, Ph .D. Author of The Psychology of Trading and a performance coach every elite trader can be characterized through 6 qualities. You can learn how professional traders trade by emulating these traits:
Ability to sustain focus (pro traders are either fast thinkers or deep thinkers).
Originality and creativity (while pro traders may use some well-known trading strategies, there is a uniqueness to how they execute that strategy).
All pro traders have learned from a mentor or other professional traders.
Emotional resilience (treating losses as a learning opportunity).
Attention to the details.
Always working to become better at this game.
So, professional traders derive their edge from all of the above-highlighted points.
However, we have kept the best professional trading techniques for last.
First, the world’s most talented traders are good at exploiting their edge.
What do we mean by this?
Simply put it, they are able to recognize what are their strengths and weakness are and then capitalize on those strengths. In other words, a pro trader is doing more of what works and less of what doesn’t work.
Let me explain…
For this, we’re going to assume that pro trader A from hedge fund ABC has identified that most of his profits come from scalping the stock opening bell. On the other hand, he also noticed that he is doing a terrible job trading breakouts.
Now, a professional trader will maximize his strengths by trading bigger sizes on the opening bell. And, at the same time, he will avoid trading breakouts.
Other professional trading techniques used by many pro traders are to take one good trade at a time.
While all the tools that the professional trader uses are equally important if we were to pick just one rule, this would be:
One good trade at a time followed by another one good trade.
In his book “One Good Trade – Inside the Highly Competitive World of Proprietary Trading,” Mike Bellafiore explains the characteristics of a good trade.
One good trade is a trade that strictly follows your setups and your plan.
Let me explain…
If you followed your plan, whether the trade yields you a profit or a loss, then that’s one good trade.
In other words, the inner workings of a good trade follow the trading rules you have set in place.
Of course, if you don’t have an edge, you can follow your trading rule as much as you want; they will produce the same type of results.
So, the first thing you need is a profitable trade setup that you know it works.
Moving on…
We’re going to share some of the tools that professional traders use.
Hint: It’s not what you think.
3 - Tools That Professional Traders Use.
The reality is that professional traders don’t gain their edge from special tools or special technical indicators. Most of the professional traders use the same trading tools that are available to retail traders as well.
So, if there are no professional trading indicators how come a professional trader can make money using the same trading tools as you do, but you still can’t seem to find any type of success?
Well, it all comes down to how you use professional trading tools.
A professional trader can take the Relative Strength Index ( RSI ) indicator and use it in a very unique way. This type of unconventional thinking is another trait of a professional trader.
Check out some professional trading techniques that have an unorthodox approach:
Best Average True Range Forex – An Unorthodox Approach
How to Trade The London Breakout Strategy With One Trick
Breakout Trading Strategy Used by Professional Traders
Hedge Fund Strategies and Tools Used on Wall Street
Secondly, you’re probably using indicators the wrong way.
The problem with indicators is not that they don’t work, but with the fact that you use them in the wrong way.
Let me explain…
We’re going to uncover the most common mistakes you’re doing when using technical indicators:
Using indicators in the wrong context.
Using indicators with the wrong settings (i.e. Trading short-term time frames with long-term settings).
Moving on…
We’re going to share with you some professional trading strategies used by top market wizards.
Professional Trading Strategies
Note* Some of the professional trading strategies outlined through this section can be found in the book “Street Smart” by Linda Bradford Raschke and Laurence Connors.
Moving forward.
We’re going to share with you some professional trading strategies used by top market wizards.
We’re going to share 3 professional trading strategies that work and give you some hints to pick the one that fits you.
Here is the list of what we’re going to write:
80-20 strategy for day trading like a pro,
The Holy Grail trading strategy (suitable for any market and TF).
Three Little Indians trading strategy (catching trend reversals like a pro).
My next posts will be these strategies.
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