Using sophisticated settings such as more trading screens or lots of indicators doesn’t define a professional trader always. Management skills and strategies identify who is the best in the industry. So if you are a rookie and think that professionals always use better tools to trade, then you’re wrong. They use common strategies to catch the market. Then what makes them different from others? Here we will talk about those six parameters which differentiate a trader between amateur and pro.
Distractions and focus
The surroundings of an amateur trader are quite disorganized, which breaks his attention like watching TV or YouTube, chatting on WhatsApp or Skype. That’s why he cannot concentrate on the chart. So the result is he misses’ good deals, makes mistakes, and cannot analyze trade properly. A professional always keep the focus on what he does. If he is going to place an order, he tries to analyze the charts and indicators with full concentrations. A pro uses websites and other indicators such as news tickers to keep him updated about the market to know the condition of the market.
Amateur just rely on charts and place orders randomly. There is a myth it helps the amateur to gain some return in a short time. But this thing doesn’t bring good results always. That’s why lots of traders lost their capital. Before making a trade, a professional makes his blueprint. It helps him to make a good winning strategy. He analyzes every possibility before place an order. What differentiates him from others? When there is nothing to do, a professional spends his time reading trading journals or magazines to develop new ideas. You can also enhance your trading skills by using a professional broker’s educational content. View the website of Saxo and read their premium articles free of cost.
Overconfidence after a winning streak
After some winning in an alignment, the newbie thinks he achieves all the skills to become a super trader. He cannot fail anymore. And that’s where problems start; they take risks without thinking about consequences. It is quite normal to win a 4-5 streak in a row, but the situation can change when you trade more oversized lots with high risk in greed. A winning streak is a common thing to a professional trader. Because he knows it’s his strategy that makes him a winner. There is no magic. A pro always sticks to his plan, whatever the result is.
Loss of confidence after a losing streak
Depression grasps a rookie when he faces a losing streak, then starts to change his strategies which bring nothing good except the loss of money. Win or lose; it doesn’t matter to a pro. They just set their target and hold the path. There is nothing that can shake his position.
Taking losses personally
An amateur can’t accept that he is wrong or making mistakes. He thinks his strategy is best whether it can’t bring any satisfactory result. So playing with wrong tactics leads a newcomer to a huge loss. Pro investor doesn’t justify his career by one transaction. Because they know it’s a trading world, anything can happen here. If there are any massive wrong results, then a pro accepts his guilty and tries to solve the errors to develop a better outcome.
Do you need money fast?
They think there is a need for good fortune to win in the market. It’s like gambling. So they can earn money in a short time. And this wrong idea leads a newbie to the destruction of his career. Professional accepts trading as a job. Because they know it doesn’t depend on fortune away. One needs to work hard to maintain consistency.
There is nothing wrong with behaving like a professional, whatever your capital or equipment is. You need a focused mindset and patience to become capable of doing something right. Analyze the behavior of professionals to understand how they become successful. Assessing their characteristics can help you more to be a successful one like them.