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Individual retail traders generally only gain access to the one side of the industry made visible to them: the side they operate from – let’s refer to it as the “buy side”. Occasionally, they might get a glimpse behind the curtain and see how the various strings are pulled, but only if certain information is deliberately drip fed and revealed by an individual broker, usually for their own purpose and benefit.

Clients rarely get insight into the various broker metrics and data that is collected by brokers on their retail traders’ performance. That is, unless an industry study is commissioned, such as the respected and world renowned Investment Trends survey. This is an annual publication created after surveying thousands of market participants.

Brokers are deliberately reticent when it comes to revealing information – not because they have concerns regarding client confidentiality – the majority of brokers simply fail to see the relevance. And this is a great shame, because there’s some incredibly valuable and detailed information contained therein, once the data is mined.

If brokers did reveal a full breakdown of retail trader performance, it’d prove to be a fascinating insight into retail trader behavior. One behavioral aspect many brokers have recorded over the years is the clear distinction between those who fully commit to the industry and those who are inconsistent. Those who treat the industry with respect and as a profession (full or part time) have a greater chance of success, when compared to those who treat trading as a hobby.

There’s also a common misconception with regards to the definition of a professional trader; adopting a professional attitude towards the FX trading industry isn’t determined by your account size, or experience. You can adapt and adopt the professional habits and attitude of a professional trader whether you have an account size of €3000, or €30,000 and from the beginning of your trading career.

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You can (and should) trade like a dedicated professional, irrespective of your account size and whether or not you consider yourself to be part time or full time. The key changes in your trading plan regarding your method are unlikely to be altered as a consequence of your account size, while your money management skills should remain unbroken. The only possible key change should be the risk per trade. With a larger account, you may decide to risk a smaller percentage of your overall account size per individual trade.

When analysis of trader data, an illuminating discrepancy has emerged – one between those who are consistently successful and those who struggle. It can perhaps best be described as “trader commitment”. And we can identify levels of commitment, not necessarily by the opening account size or overall account size, but how the account is managed. There is a direct correlation between the success rate of traders who regularly top up their accounts with small amounts and those who fully commit to the industry, and there’s a fairly logical and basic reason why; it relates to an issue many professionals will refer to; the creation of a trading plan.

Rather than treat FX trading as an exercise similar to betting on a sports event, those who pledge a reasonable sum to their trading account are in a much better position to trade following the rules they’ve embedded in their plan. Let’s refer back to our €3,000 account size as an example as to how random, imprecise behaviour and topping up accounts after each trade, can potentially harm your trading success.

If you’re only taking a two percent risk and you only have one trade in the market at any one time, then you’ll be risking €60 of your initial account size per trade. If you’re limiting your risk through placing stops and limiting your profit through a limit order, then there’ll be no margin issues, as the remainder of your account will easily have enough margin in it to cover the trade. If you lose the trade, but as part of your method you take another trade, you’ll not be trading €60, you’d trade €58 if you stick to your two percent risk per trade tolerance level.

Compare this to someone who trades randomly, perhaps without strict adherence to a trading plan, by topping up their account as and when. Let’s suppose they want to risk the same €60 on the trade, but don’t have a stop (or limit) in place, the trader will need more than the €60 in their account in terms of margin. If they also lose this trade then would they necessarily only trade €58 on their next trade, or would they then choose another random selected amount, perhaps €60 or maybe greater, as they allow emotions to overcome their decision-making and they attempt a revenge trade?

If you’ve finally committed to trade the FX markets, then commit fully. Create the bulletproof trading plan, stick to it, be consistent and manage your trading account in the manner of a professional.