Though humans have the same brain, the differences between these small grey matters are amazing.

You will be thunderstruck to know that the human brain has two different parts: the reflexive part and the reflective parts.

These two parts have their own purposes, but the successful traders use a part that is different from the novice traders.

This is where their results get varied; each trade on the same currency market but they have different outcomes.

Before we go into the discussion of these differences in the brain sections, we want to give you a brief idea about the reflexive part and the reflective part.

Reflexive section of the brain

The reflexive part of our brains is the primitive section. It has been in our minds since the onset of human civilization on our planet.

Do not get the idea that we will give you a lecture on human history, but it is important to understand why many people react on sudden changes, and trade with their minds while others take their time and calculate the risks of their profits.

The reflective section of the brain

The reflective brain is the section that calculates what risk we will be rewarded with as well as the amount of profit. This part is mostly the active part of the professional traders.

How the mind of a trader works

Now you have got ideas about the two brain parts, we can start telling you the differences in the brain thoughts of traders.

The human minds work in a very complex manner. It will always force you to avoid any hard or damaging stuff. This is why trading becomes extremely difficult for the novice traders.

The new traders can’t accept the losing trades. They want to recover their losing amount with big lot size and lose a significant portion of their investment. But in the retail trading industry, you will always lose money.

This doesn’t mean you won’t make money at the end of the month. If you trade with 1:3+ risk-reward ratio, even after losing more than 50% of the time, you can still stay profitable. Money management is very important in forex trading.

Psychology plays a great role when you are trading CFDs. You have to eliminate the external variables while trading the market. Start focusing on the basic rules of investment and try to find profitable trades.

Stop trading against the market trend. If possible, learn the psychology behind the formation of each candlestick since it will greatly help you to execute quality trades. Such a system is often known as price action trading.

Brain thoughts of novice & common traders

In this group of traders, their reflexive brain part is the most active. They do not think of the consequences and only act based on what is presented before them.

If you present them with a good trend and the market seems to be favoring the buyers, they will place buy currency pairs without any hesitation.

This is the reason why novice traders have a hard time finding success in the same industry where the professionals also work.

They only see the surface trend and do not analyze the underlying factors guiding the trend.

This group is emotional; they react suddenly and they lose their money.

Brain thoughts of professionals

Reflective brain part is the part that has been developed over the ages and what makes the engineering marvels.

This is where our creative mind does not work and our analytical mind takes the control.

The professional traders always think and calculate the mathematical strategy to make their profit.

They do not trade on a hinge; they observe the market, calculate the trends and their risks, set their position size, and place trade.

You may laugh at their preparation of one trade but they know how to make money.

When all other traders use only their primitive brain part, the professional and the successful traders use the advanced and the most mature part of their brains.