How to beat Floor traders at their own game?

Floor traders making a living on the exchange market will always have an unfair advantage when compared to home-based day traders. Like it or not, that’s how it was, is and will be.

Why? Well simply because they are well exposed to the changes that the market may be experiencing and also due to the fact that they can exchange information at a record time with their fellow traders.

The pit on a trading floor is a complete chaos with traders yelling right, left and center. It makes you wonder sometimes how on earth they still manage to understand each other. You see amid all this frenzy they still have a major advantage, the communication factor.

Unlike us, home-based day traders, these professionals have the chance to see beyond price action only. The sheer fact of being able to exchange information effectively with each other and seeing the reaction of other traders can often provide enough information to which markets are about to go up or down.

Sounds familiar I suppose, well when you think about it, it is human instinct to gravitate where the action is happening. You see, communication is key, whether you are a floor trader or a home-based day trader. This may more than often put you on the right side of the market.

My advice to you is not to be glued to your trading platform the whole day, join a forum and interact with other traders. You can participate in discussions and exchange views about the currency of your choice, remember communication is key. A lot of the participants on those forums make a living from day trading. It would be a wise move to know what they are doing.

If your trading plan matches their trading plan for the week, then you may have a possible winner. If the opposite is true, you may want to know why and the reason behind their choice. This will be of great help for the long term.

Happy Trading.

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