Thread: A beginner trader vs a professional trader

A beginner trader, when buying or sells, barely gets a few gain pips and already wants to close the operation.If the price goes against him, he clings to the hope that he will return.Sometimes he is lucky and the price returns, which reinforces his belief.But next time, the market continues against it, and then begins to add more positions ... and more and more ... until, at some point, or receive a Margin Call or has to close with a great loss.I always wonder: will it be possible to do exactly the opposite of what a beginner trader does?That is, close quickly when there is a loss and let the profits run?And also add more positions when the Trade is in favor?According to my experience, the entrance system (the purchase/sale and exit rules

The big difference between a professional trader and a beginner is that the first executes its strategy within a series of operations that, together, have statistically demonstrated to have an advantage in the market.In addition, I believe that the tickets and exits system does not represent 15% of trading.In my opinion, success in trading is approximately 60% capital management, 30% psychology, 8% operation of the operation (including stop -los and exits

Very well said.Trading only really begins when a trader understands this.Once you can automate a process with statistical advantage, trading becomes completely mechanical and without emotions.The big difference between a rookie and an experienced trader is that the professional does not get carried away by the emotions of the market.Simply run your plan and let your advantage develop over time.

Thanks for the contribution.One thing I can't understand is why a beginner trader lets his losses grow so much compared to his profits.Is it part of human nature?

Yes, it is a behavior very similar to that of a casino player.A beginner does not understand the probabilities or mathematics behind trading.When an operation goes against him, instead of accepting the loss, it is convinced that the price will return.And when he does not, he continues to add more positions until his account does not support him anymore.

The beginner traders enter the market with the mentality of "not losing", but trading is not about avoiding losses, but of managing them correctly.A professional trader knows that losses are part of the game.The important thing is to keep them small and allow profits to grow.

I think the problem is that most beginners think that each operation must be winner.They do not understand that success in trading is a matter of probabilities and manage the risk correctly.A professional trader does not care about losing a particular operation.Just follow your plan, knowing that, in the long term, your advantage will manifest.

The biggest error of the beginner is not to accept that the market can go against him.The professional knows it and already has a plan for each possible scenario.The difference is simple: the improvising beginner;The professional executes a plan.

If you want to improve in trading, forget about trying to win in each operation.Focus on managing the risk and maintaining a statistical advantage.Money is not guessed by guessing addresses, but managing the probabilities and possible scenarios well.

It seems incredible to me how most beginners focus on finding the "perfect strategy" when what really matters is the discipline and money management.You can give the best strategy in the world to a rookie, and yet he will lose money because he does not know how to control his emotions or administer his risk.