Learning curve, look ahead
One of the stark contrasts I have noticed between retail traders and professional traders is that professional traders are far, far better at anticipation. Now this is a generalisation of course, but the professional trader is often in a trade way, way earlier than a retail trader. The retail trader often enters much later/too late.
Why is this?
It is partly due to a natural learning curve. Markets anticipate what is about to come. That can take time to learn/experience. It is really an extension of ‘buying the rumour’. Now anticipating a trade does have its downsides too. Being early can also be the same as being wrong, so anticipating a trade is certainly not a panacea to end all your woes
. However, try to anticipate some trades. So, for example, do you know a central bank is about to lift interest rates that week? Try entering long the currency the week before. You may find you catch a good run into the event. This is what I did with the EURGBP into the BoE this week
. It worked well and I was in good profit. I gunned for more got hit out at B/E, as the expectations are one thing, but the event is always a risk. But you get the point, right?