There is a distinction among an expert trader and an recreational trader.

A professional trader never goes into a trade blindly whereas an amateur always trades based on his/her emotions. You need to learn from hedge fund managers if your desire is to develop into a pro. In order to attract investments, hedge fund managers need to do well. Hedge fund managers have to convince their clients with a battle tested strategy.

As singular traders, our $30,000 trading financial credit is as significant as any $30 million high risk fund. More important is the account valued at $20,000. The money that we work so hard for is used for trading. Hedge fund managers utilize others money to trade.

A very particular methodology is followed by the majority of hedge fund managers to put together their plan for forex trading. There is no reason why should we as individual traders also not follow that step by step process to develop our own trading strategies. If you want to invest and can't afford to lose money, then choose a guaranteed annuity and stay out of the stock market all together.

It must be clear from the beginning; every trader has to find one's own edge. We should learn from other successful traders. You will succeed by using your methodology. You should have your own plan in place on developing and implimenting your trading strategies. ( like the hedge fund managers do) This will provide help in the future.

Detail your trading methodology. Much like an original trader, each hedge fund manager goes about business to the beat of their own drum. Some traders use fundamental analysis. Other traders use technical analysis.

The first thing that you need to understand is what type of trader you are and what is the style of trading that best suits you. Have you ever entered into the world of day trading ? What are you after, swing trades or position trades?

Determine whether you are a fundamental or technical trader, or a mixture of each. Hedge fund managers always develop trading rules and code them. This way they avoid the pitfalls of emotional trading.

It's important to avoid trading that is based on emotions as it is a high risk. Make your forex system rule based and mechanical with clear cut steps that you can follow in order to make your trading as unemotional as possible.

Will you use news to help you trade or technical analysis? You need to pick and become a master of the behavior of a few currency pairs. Focus on a few currecny pairs to become good at trading long term.

Every currency pair requires a different trading strategy to make pips. You need to understand this. Some trading strategies are effective when trading one currency pair, but are ineffective on others. Part 2 of this article shows how hedge fund managers further improve their trading strategy.

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