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How professional traders earn money from market

How Professional Trader earn money from market

In this post we will discuss the professional traders strategy, how they earn good money
From market while other lose money.
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You know that professional traders is responsible for up-down of market, like when a stock price move up and when stock price fall behind this professional traders approach works.

What is a professional trader? A professional trader is a person who works in finance and engaged in investing as a business or in a full-time role rather than occasionally or as a hobby. They may work for themselves, at a trading company, at a wealth management firm or as a freelance trader for individual clients.

Psychology Difference between Professional and Retail Trader

First we talk about a retail trader psychology....
A retail trader always want to double the money in quick way, he hate to wait patience. A retail trader buy stocks  at any price without any strategy. He doesn't know what is entry point, what is stoploss and what will bo the target of his trade.
A retail trader placed necked order and lose his money in market.

While professional traders make money from market because they play with strategy in market.
Professional traders know when to buy a stock, what will be the target and stoploss of trade. They wait for quality trade, they don't trade daily like retail traders.

Example

A retail trader wants take a trade in stock , he will buy some quantity of stock at any price he doesn't know when to buy where to buy. He buy stock than price fall against his buy price, than retail trader exit the trade in lose.
Professional trader buy stock at a certain price called as Demad Zone. Professional trader buy stocks in million -billion quantity. So if they change his stock buy price by 1% or 2% than their money value will change by 1% -2% and result will be the decrease in quantity. So they can not change his buy price because million or billion quantity will decrease.

Where Professional traders buy-sell stocks

Professional traders move the market up and down. But where they buy sell stocks
question is that. What is safe areas to buy stocks.
Professional traders are also called FII and DII. They buy stocks at only and only on demand zone, and sell at supply zone. We will discuss these in next posts.
They put the order at demand zone, these orders placed on stocks price for a big time like for some weeks, months, years also.
When the stock price come around these areas their order executed.
Professional traders never placed single necked order. They use bracket orders.
Bracket order contains
Entry price
Stoploss price
Target price.
Professional trader like to wait for a quality trade while retail trader hate to wait in market.

Approach for successful trader


So if you want to make a successful trader like professional trader than you should follow the professional traders rules in your trading journey.
My trading teacher always says..

You may be wrong but market is always right. And if you hate to wait than market is not for you.

How to identity those area where professional traders placed their order we will discusse in next post.

Thank you.

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