Portrait of a Professional Trader

A trader is a market participant who opens and closes transactions to buy and sell assets for profit. The process of becoming a trader today can be divided into three stages:

• A “student” – who has not yet lost his deposit but is investing in his education.
• An “experienced trader” – who neither loses nor wins money.
• The “professional” – who trades with some kind of profit.

Of course, if you are reading this article, it means you are wondering how you can get into the third category and join the “pros”. In this article we are going to talk about those they are trying to replicate and those they are trying to imitate.

The main role of a trader

Historically, an important part of a trader’s job is to try to understand what has happened, is happening, and will happen in the future with the price of an asset. After all, it is on this difference that market participants try to make their profit. Everyone has their own methods and tools to do this – not only objective but also fantastic. But if the past and the current price can be dealt with somehow, then the chances of dealing with the future price are close to zero.

It is also worth correcting that it is not enough for a trader to simply “predict” what will happen to the price. Thousands of such predictions are made every day by various “analysts” in the market, often changing their opinion more than once to the opposite.

Just for an experiment, google: “How much will bitcoin be worth?”

According to the general concept of trading in the market, the trader must regularly determine the future price. They must also determine the exact time and price level at which the expected changes will occur. However, traders firmly believed that this can be done with any asset at any time.

From the above, it is possible to create a portrait of a trader that most people have in mind and strive to achieve.

The perfect trader

What is he?

1. Has the knowledge, skills, and tools to analyze the market and any asset.
2. Accurately performs financial analysis and predicts future price movements.
3. Buys and sells at the most (or nearly) appropriate times.
4. Makes a profit thanks to his ability to predict future prices.
5. Trades for profit in any asset.
6. Always knows the answer to the question: what level will the price reach, and knows the exact time when it will happen.

Do you recognize yourself in this vision of the "perfect trader"?

During our time in the market, we have come to the conclusion that this misperception was formed in narrow, non-professional circles and then spread to the masses and became firmly entrenched in people’s minds. And to change it, we need to change our approach to market analysis.

So, what’s the secret?

The first thing to understand is that price is not primary, it is driven by supply and demand. Once you understand this, you will know that you need to learn how to determine supply and demand in the present, not price in the future.

Price is the direct result of changes in supply and demand, not the cause. Even if the price falls sharply but demand never appears, it will not rise. No matter what the charts, indicators, figures, and other mechanics that do not take demand into account show.

If you want to trade if not perfectly, but at least profitably, you have to ask yourself the question: how do you determine supply and demand in the present and in the future? Nobody knows the future. Unless…

We don’t know what’s going to happen to us tomorrow (even though it’s our lives), let alone what’s going to happen to the price of an asset we don’t even own. So, the most logical and correct way is to learn how to determine supply and demand in the present. And then to learn how to find those assets where there is a large preponderance of one of the parties.

Resonance tools help to determine such situations.

The professional trader

In our opinion, the successful trader to aspire to is different from the conventional one. But we are confident that it is the exemplary one.

1. Does not try to predict the future.
2. Obtains objective data from the exchanges and interprets it appropriately.
3. Finds only those assets where there is already a strong imbalance between supply and demand forces.
4. Before the price reacts to this imbalance, the trader enters the trade with those who have created the imbalance and exits with them, profiting from the price difference.
5. Does not get greedy trying to squeeze every last penny out of the market.

Share this article with your friends and other communities so that as many people as possible can think about an alternative approach to the market. Maybe it will help someone to stop losing in the market and make their trading more profitable.