Let's look today at what separates professional traders from amateur traders.

To make money from buying and selling requires a mismatch in supply and demand.

Professional traders are those that consistently derive income from exploiting this mismatch.

To do this the probable areas of supply and demand need to be known and the distance between these areas becomes the profit opportunity.

The skill is therefore to look for areas where amateur traders are taking positions in high risk zones and taking the other side.

Buying when panicked retail selling is moving to a demand area.

Selling when excited retail buying is moving up into a supply area.

Have a look at the Euro charts and see if you can identify where supply / demand mismatches are possible.

Euro-SR.jpg (220.22 kb)

The link below has Supply Demand areas marked and how price reacted.

Euro-SR1.jpg (247.28 kb)