A professional trader is not the one that has the largest number of computer screens on his desk. A professional trader is defined by his mental approach to trading and its routine. An amateur can easily put themselves in the shoes of a pro by following some of the principles of pro.
Here are 6 principles of trading to make your :
1 — Distraction and concentration
Amateur : Watch youtube videos, use facebook, talk on skype, watch TV. The amateur will easily do something else if the markets become slow. It lacks therefore some of the trades and made mistakes on the timing of entry into position.
Pro : It is 100 % concentrated and does nothing other than look at the course. It checks a website for information on the markets they trade.
2 — Time frame
Amateur : the Amateur will constantly change time frame (1h, 4h, daily etc..) looking for an opportunity. It doesn’t help if you don’t know what you’re looking for.
Pro : It has a trading plan detailed and knows exactly what he is looking for and when it comes into position. It does not change the time frame but patiently waits for the opportunity to trade arises. And if there is nothing to do, you need to go take a look on her journal of trading and review the mistakes not to repeat.
3 — Too full of trust
Amateur : He thinks that after a few winning trades, it was able to acquire higher-level skills or that he has suddenly found THE strategy. The risk being that the lovers, after a series of winning trades, begins to take more risks. Its trading rules shatter, and the failure will be at the corner of the street. Why lose all of its profits after 5 trades winning on a single trade loser ?
Pro : The pro knows that he has not become overnight a genius and that he doesn’t really know what tomorrow will be made. A series of gains, it is normal and it happens from time to time. This is not to say that it will start to increase its leverage. Never !!!
4 — Loss of confidence after a series of losses
Amateur : A newbie will break the rules of money management after a series of losing trades. He absolutely wants to redo in a short time and therefore takes more risks.
Pro : A series of gains or losses, this does not change anything for a pro. It is inevitable anyway. No emotion. The strategy and the trading plan must remain the same whatever happens.
5 — Take the loss in a personal way
Amateur : He has trouble accepting the idea that his trading decision was wrong and that he is going to lose money. He moves his stop-loss, and begins to hope in the pain. It will also double the bet history will repeat two times more quickly in the event of a rollover. It will also at some point to completely remove the stop loss.
Pro : It lives in the following two principles :
-A trade is just a trade and the outcome of a single trade does not matter
-The stop loss is there to remind where is the price proving that you are wrong and where you WANT to leave the market to take the time to redo your opinion
There will be 100 500 1000 trades more with which you will have a chance to win big.
6 — Do you need money quickly ?
Lover : think of It as the trading can make a lot of money in a short time.
Pro : The tading is a job regular. It does not count on a trade of the lucky ones. He wants to protect his capital and take his time to reap the rewards.