A professional trader is not the one who has better equipment or better indicators. A professional trader is defined by how he treats his trading mentally and how he evaluates his handelsrutin. The following article goes through the 6 most common principles of trade that make the biggest difference between an amateur and a professional investor.
# 1 Distractions and focus
Amateur: Looking at the YouTube videos, is online on Facebook, chatting or watching TV during their trading. Amateur easily lose focus and do multiple things when there is no position in sight, or that the market is currently slow. He therefore has no business, makes mistakes in the calculation of its position.
Pro: When the professional trader is in the trade, he is 100% focused and do nothing else than to look at its chart. Maybe he has an open webbplatsför to monitor the press releases or listen to the news (only sound!), but that is all. A Pro knows how important it is to be 100% focused and when there is something to do and when no handelsuppsättning is in sight, closes he of their platform, working on their merchantability, or just taking a day off.
# 2 Tidsslöseri
Amateur: the Amateur has a tendency to look at the charts for hours and scroll through the time frames. The myth about the number of skärmtid is still accepted among amatörhandlare. Looking at the diagram for its sake has no value if you don’t know what you are looking for.
Pro: The professional, the trader has a detailed trading plan and know exactly what he was looking for and when he should act. He turns not through the time frames, but just waiting patiently until the trade comes to him. He does not waste away their time by sitting in front of their charts all day when there is nothing to do. When there is something to do, go the the pro back to its handelsdagbok and is reviewing its past performance to find ways to get better.
# 3 Excessive self-confidence after a winning trade
Amateur: the Amateur believes that he, after a few winning trades in a row have acquired superior competence, or that his trading strategy is suddenly a penningmaskin and can’t fail anymore. The problem is that after a few winning trades, using these too much risk and taking trades that are too large or therefore, is in breach of its trade rules.
It is not unusual that after 4 or 5 winning trades losing all their profits on just one trade.
Pro: The professional trader knows that he suddenly is not a superhandlare and can not predict what will come next. A winning trade is normal and will happen time and time again. It is just how trading works. A professional trader always follow his plan, the risk and penninghanteringsreglerna and never let go of the loss of a significant part of its capital.
# 4 Confidence after a lost trade
Amateur: Amateur loses his confidence in his skills and his trading strategy when he walks in the loss. An amateur has a tendency to change its trading strategy or break their trading rules when he goes into a loss.
Losing streaks are dangerous for amateurs, because it often leads to even greater losses when traders try to compensate for the lost money.
Pro: For the professional trader it doesn’t matter that he win and lose streaks. It is inevitable and will happen over and over again. A professional trader knows that his trading strategy in the long term will give him money, no matter what. A professional traders stick to their rules and never loses his mind.
# 5 Personal losses
Amateur: Has a hard time accepting that his mission was wrong and that it can lead to loss of money. Especially new and inexperienced traders cannot accept being wrong, and when they see that the price is on the road to meet his slutförlustorder they will do one of the following:
– Install their stop loss further away to delay the loss
– Adds to a losing position to come out of the loss was faster when the price reverses
– Exit the purchase order completely because the price finally have to turn on the
All of these tactics leads to big losses and marginalanrop. A trader involved in one of the above three scenarios is far from being a professional trader.
Pro: The professional trader live according to the following two principles:
– A trade is just a trade and the outcome of a endaaste trade plays no role
– The Stop-loss order is the price at which you fully accepted that your original concept was wrong and where you want to leave the market
The professional trader knows that the outcome of a trade is completely irrelevant for its handelskarriär. Whether a single trade is a win or a loss doesn’t matter because it will soon be 400, 500 or 800 shops where you can earn money. A professional traders also accept that SL is the place where his trade is wrong and that he is happy to leave the trade because it will not make him money.
# 6 do you Need the money quickly?
Amateur: What is your commercial? Do you think that trade is a way to earn a lot of money in a short period of time? The research showed that traders who think they can get rich quickly with trading lose the most money.
Pro: For the professional trader is trading a regular job. For the professional trader is not about excitement or that you want to make a fortune with some lucky deals. Trading is not an easy profession and it requires time and hard work before you can earn money.
Conclusion: Pretend until you succeed
For you to become a professional trader, so you need to behave like one. To act as a professional traders do not require a lot of capital or expensive equipment. You can trade as a professional trader now. Analyze your trading behavior and make sure that you make adjustments in order to take your trading to the next level.