Amateur trader are the ones who enter market to make money quickly and in turn lose most of their trading capital come back again with trading capital go bust again and cycle keeps on repeating for 3-4 years and eventually they quit market thinking its all manipulation which goes on.
Amateur trader blames market for the outcome of a bad trade. Reasoning will be like
1. All market analysts are crooks and they are paid to give wrong recommendation.
2. I just went away from screen and my stock collapsed.
3. Why it happens to me everytime i take trade and market moves opposite to me.
4. My friend gave me a bad tip.
5. Market Operators pump and dump the stock.
6. The specialists are playing games.
The mark of a professional, however, sounds like this:
- It is my fault. I traded this position too large for my account size.
- It is my fault. I didn’t stick to my own risk parameters.
- It is my fault. I allowed my emotions to dictate my trades.
- It is my fault. I was not disciplined in my trades.
- It is my fault. I knew there was a risk in holding this trade into earnings, and I didn’t fully comprehend them when I took this trade.
The obvious difference here is accountability. The beauty of trading is you need to confront your “real self “, You need to handle your emotions and face them while you are trading which is most difficult task.
This is also known as “living in a fog.” A person can drift around through life in their own private world, where they are pretty special and can do no wrong. Unfortunately, trading rips off this mask, because you cannot dispute what has happened to your account. This is also known as “confronting reality.”
Some people say that traders are born, not made. Not so. If you choose to see the world as it is, then you can start trading successfully tomorrow.