The secret of how professional traders buy and sell | Forex Factory

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The secret of how professional traders buy and sell

  • #1
  • First Post: Jun 17, 2012 9:59am Jun 17, 2012 9:59am
The truth
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  • #2
  • Jun 17, 2012 11:33am Jun 17, 2012 11:33am
I guess professional traders know how institutions + their computers trade and how + when they execute orders.They know why price is moving slowly or heavily. The average trader call it price action but has no single clue what's going on in the markets.And professionals know the difference between realtime sentiment and the (global) sentiment or fundamentals.
  • #3
  • Jun 17, 2012 12:35pm Jun 17, 2012 12:35pm
i actually disagree with this, professionals have access to as much info as we do these days, there is no magic formula. The real difference is the fact that the pros have a bigger account balance so the can ride out losses if need be and let profits run. There is no magic behind it.
  • #4
  • Jun 17, 2012 1:42pm Jun 17, 2012 1:42pm
Quoting No-Luck
I guess professional traders know how institutions + their computers trade and how + when they execute orders.They know why price is moving slowly or heavily. The average trader call it price action but has no single clue what's going on in the markets.And professionals know the difference between realtime sentiment and the (global) sentiment or fundamentals.
I think that picture shows exactly how market works,as it immposible for one or team of humans beings to know how price or why it moves as theres to many variables involved into this business,count all the banks,funds,goverment,media,speculation,average joe who just started trading,some rish arab sheih who doesnt know what to do with his oil money,then computers,all different algortihms and other stuff that goes behind closed doors where g7 and other leaders make deals how to control economies,then you might say that some Bob the trader knows something you dont.
  • #5
  • Jun 17, 2012 1:55pm Jun 17, 2012 1:55pm
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  • #6
  • Jun 17, 2012 6:39pm Jun 17, 2012 6:39pm
Quoting GDR3k
good one
  • #7
  • Jun 17, 2012 7:03pm Jun 17, 2012 7:03pm
Quoting larkeater
i actually disagree with this, professionals have access to as much info as we do these days, there is no magic formula. The real difference is the fact that the pros have a bigger account balance so the can ride out losses if need be and let profits run. There is no magic behind it.

Sure info has been become transparent in the fact that everyone gets the same info. What matters, and has mattered for the past century, is the speed at which participants receive that info. Those who have deep pockets can actually locate closer to the exchanges themselves to receive faster news and faster bid/ask quotes than the average investor. Moreover, players with deep pocket can gain access to much, much larger data pools than average investor can. So to say that the game is played on an equal field, is simply a naive statement.
  • #8
  • Jun 17, 2012 7:57pm Jun 17, 2012 7:57pm
Ultimately the speed which you have access to information is entirely dependent on the amount of investment you put into your trading setup. Of course if you are trading from home and rely on your broker platform alone you are 3 steps behind.
  • #9
  • Jun 17, 2012 10:06pm Jun 17, 2012 10:06pm
I think it is clear that speed is incredibly important
  • #10
  • Jun 17, 2012 10:10pm Jun 17, 2012 10:10pm
Quoting larkeater
i actually disagree with this, professionals have access to as much info as we do these days, there is no magic formula. The real difference is the fact that the pros have a bigger account balance so the can ride out losses if need be and let profits run. There is no magic behind it.
As far as human (discretionary) trading, this is 100% true. Another major distinction is, as a professional, it's the full time job. Statistically, people playing around in the markets and not devoting screen time every single day are bound to face losses in the long run - just from a pure statistical standpoint of stunting the ability to take the correct setups over and over.

Most of the data and information needed can be accessed by retail these days.
  • #11
  • Jun 18, 2012 1:17am Jun 18, 2012 1:17am
Professional Money have an edge over the average retail trader or investor by having the power of superior financial knowledge, complete comprehension of the markets. Understanding Market Manipulation is key in your success in the financial markets.
  • #12
  • Jun 18, 2012 2:27am Jun 18, 2012 2:27am
Quoting larkeater
Ultimately the speed which you have access to information is entirely dependent on the amount of investment you put into your trading setup. Of course if you are trading from home and rely on your broker platform alone you are 3 steps behind.
That reminds me of a story I read a while back, about some new cable that was getting laid across the Atlantic ocean for trading and it was a few milliseconds faster than the current one that was there already.
  • #13
  • Jun 18, 2012 5:34am Jun 18, 2012 5:34am
>Impossible< That sounds really annoying. Market manipulation or speed advantage are surely 2 important things.But i think there are very smart traders out there who cracked or made very intersting discoveries due to deep investigations + calculations which give them an huge edge against the average trader if they really understand the markets and have the proper tools.
  • #14
  • Jun 18, 2012 8:22am Jun 18, 2012 8:22am
Quoting No-Luck
...But i think there are very smart traders out there who cracked or made very intersting discoveries...

Therein lies the difference between the professional and the retail traders. Professionals don't see the market as some mystical thing that needs to be cracked.

Those who believe the market needs to be cracked tend to be masking their real issue-dealing with being wrong.

The first lesson many pros learn is how to get out of a losing position 100 times out of 100. Not some super secret way to always be right.

Ultimately, Professionals are professionals not because they win more, but because they lose better........
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #15
  • Jun 18, 2012 2:00pm Jun 18, 2012 2:00pm
OK i give up.

Looks like creativity is not all around here.
  • #16
  • Jun 18, 2012 3:38pm Jun 18, 2012 3:38pm
Quoting larkeater
i actually disagree with this, professionals have access to as much info as we do these days, there is no magic formula. The real difference is the fact that the pros have a bigger account balance so the can ride out losses if need be and let profits run. There is no magic behind it.
Think in terms of percentages. A large account can be blown just as fast as a small one!
  • #17
  • Jun 18, 2012 3:48pm Jun 18, 2012 3:48pm
That's basically how Wall Street works
  • #18
  • Jun 18, 2012 9:55pm Jun 18, 2012 9:55pm
We are retail traders, we don't and can't move the market. Especially the forex market. When we institutional traders scream "BUY BUY BUY" and we see their actions on the charts, we follow along and buy with them. When they shout "SELL SELL SELL", we sell along.
  • #19
  • Jun 18, 2012 10:17pm Jun 18, 2012 10:17pm
Quoting ForexMGames
We are retail traders, we don't and can't move the market. Especially the forex market. When we institutional traders scream "BUY BUY BUY" and we see their actions on the charts, we follow along and buy with them. When they shout "SELL SELL SELL", we sell along.
Yup. They have big money and power. Even unskill trader could manage to earn by using pyramid position trading method, just buy more contract to average down the breakeven price when position is losing. In the end, winning still is you. Haha. ...
  • #20
  • Last Post: Jun 19, 2012 11:35am Jun 19, 2012 11:35am
Institutional trader definitely get an edge over us. They trade large volume to move the market in their desired direction. we cannot do that. so we have to lose often.
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