One thing that differentiates a professional trader from an amateur one, is their skill sets. Many people think that professional traders have software and other exclusive access that make them that good. In reality, that is not the case. What makes them good is strategies, management skills, and experience
In this article, we will contemplate about 6 parameters that differentiate a professional trader from an amateur one.
1. Focus points and distractions
Amateur – Surrounding matters a lot. It can often make us or break us. An amateur trader would often get distracted by Emails, WhatsApp, Facebook, Instagram, meanwhile missing good deals on charts. Making mistakes comes as a default in this kind of environment and also analyzing a trade becomes a problem.
Professional – A professional would only concentrate on what matters the most and that is the market. Analyzing the trade, what to buy next, and most importantly when to buy requires needlepoint focus. There is no time to get distracted. You lose focus, you lose the market is a mantra every professional abides by. They keep a watchful eye on the news because the market can change at any time. Hence to help themselves, professionals take help from different websites and indicators.
2. Wasting Screen Time
Amateur – Amateurs only depend on charts and trade randomly. They do this often without having any basic knowledge. It can become quite risky as often happens that a trader loses all their capital.
Professional: A professional would always have a plan before buying a.k.a (also known as) his or her personal blueprint. A veteran trader would analyze every outcome before buying or selling. Another habit every professional has is they never waste time. They are always reading business journals or magazines to keep themselves with the Forex and Dubai stocks market. Thus they are able to understand the market much better.
3. Overconfidence after a winning streak.
Amateur – After winning 4 to 5 times in a row it’s very easy to become overconfident and this is where an amateur makes his or her first mistake. It’s normal to have consecutive winning streaks but to think that ‘I have become a super trader’ would be a foolish mistake. What these amateurs do next is even more dangerous – they invest in oversized lots with high risks. A step, if not gone right can make them lose their capital.
Professional – A winning streak is quite normal and a pro would never let that get into their head. A winning streak is the result of their strategic planning. They understand that it is no miracle and anyone who understands and studies the market and acts upon it can become a winner.
4. Loss of confidence after a losing streak –
Amateur – Consecutive losing streak can make an inexperienced player depressed. What they try to do next is change their strategy without understanding the market which oftentimes is not that fruitful.
Professional – A pro is rarely deterred by their loss. They understand it’s part of their job. The sharpest weapon they have up their sleeve is they understand the market. They know what steps to take and they act upon it.
5. Taking losses personally
Amateur – Often an amateur finds it hard that their strategy is not benefiting them and refuses to see the truth. Thinking their strategy is better than the others, an amateur continues to make mistakes causing themselves huge losses.
Professional – A professional understands that it is a trading world and a trader’s career cannot be defined by one transaction. Profit and loss are part of the job and mistakes can happen. A professional braves his wrong with determination and is willing to change his strategy if and when required.
6. Do you need money fast?
Amateur – An amateur is more short-sighted than long-sighted. Hence they trade accordingly that will provide them with fast money. It’s like gambling, an amateur thinks if they give lots of money in their hand they will win at the end of the day. Hence they go for a short-term strategy.
Professional – A pro trader needs to be long-sighted, needs to have a strategy for the long term. It is a legit career and looking for fast money can destroy it. Everyone has to work hard to excel in this particular field and a professional trader understands it very well.
This article tends to provide hopes to give an insight into what goes on inside a professional’s mind. There is nothing wrong with acting as an expert right from the start even if you are inexperienced. Characteristics of a professional trader can be achieved by anyone if they are willing to. In this way, one can ensure a bright career in the field of trading.