Tuesday, March 16, 2010

Signs of Amateur and Professional Traders

When fall

Amateur = Doesn't stand up early, keeps licking wounds, keeps criticising market and operators

Pro = Stands up, takes a note of what and why, sees gaps in method-application-discipline

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Get Thrill

Amateur= from wining trades

Pro= from winning strategies and method

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Work motto

Amateur= Bleed during trading hours, Rest during non-trading hours

Pro= Sweat during non-trading hours

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Indiscipline

Amateur= is forgettable

Pro= is unforgiveable

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Control

Amateur= is boring

Pro= is survival kit

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Entry and Exit

Amateur= decided by emotions and gut feel

Pro= decided by method / signals

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Amount of bet

Amateur= decided by pocket

Pro= decided by clarity and confidence in trading opportunity

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Weakness in trading

Amateur= try to cure it

Pro= don't trade in weakness areas

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Risk

Amateur= Blind Gamble

Pro= Calculated risk

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Patience

Amateur= only while losing

Pro= when profiting (till exit signal)

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Trading Style

Amateur=complex and flashy

Pro=simple and dull

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Trading as

Amateur=a hobby and pass-time

Pro=a business

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Aim

Amateur=to become rich

Pro=to remain rich

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