What separates amateur traders from the professional trader

How can a professional take the same trade as an amateur yet end the trade at a profit or be in a better position psychologically after taking a loss? Its similar to a professional sportsman who might lose a match but end up winners in subsequent matches. Every trader experiences losing trades. Professionals and amateurs may have similar outlooks on a market, but oftentimes they end up with different results.So lets discuss the main difference between a professional and amateur’s perspective.


Focus on your system’s effectiveness and not individual trade outcomes. Trading is a  WAR, Losing 1-2 battles does not make you to lose a WAR. This is the mantra of Professional Traders.

If you plan to become a successful trader, you will need more than one trade to make a career. Lessen the impact that each individual trade has. That way, you can accept losing trades without losing sleep.

Do not be afraid to exit when you notice the market moving against your trade outside of your accepted risk. Amateurs often become emotionally married to a losing trade when the market moves against them and they’re not ready to accept the loss. They keep the trade open and try to propose to them self why it’s a good idea to stay in as the market continually rejects their idea.

Being attached to the outcome of every trade is emotionally and mentally draining so take a broader view so you can relax.

What surprised me from the start was how calmly the professional accepted wins and losses well within their money management system. As a professional trader you need to exit as soon as your SL is triggered.  DO not think twice once SL is breached, but amateur traders will look for a reason for holding back to the trade. It might recover after hitting SL, but that will train your mind to be undisciplined which will be a disaster going forward.Remmber many times you do not exit a trade and market keeps going down and blowing off your account.

What was more important to Professional trader  than being right and trying to force a winning trade?

Professional trader focus on honoring the system that gives him an edge over the long run, Also they never do over leverage  by allowing a single trade to make or break his day, week, or month.

This is difference in the professional vs. the amateur mindset. The amateur is only focused on the trade at hand. The professional focuses on the system and keeps it super simple.


  1. rishikesh vaidya said:

    So true.attaching emotions to trade results in either top of the world feeling if profit and end of the world feeling if SL is hit.Whereas if u treat every trade whether profitable or loss making as a system driven output then both the feelings disappear.Just leave the outcome of your trade to your system.Thats what u taught at the beginning of our training session.Really important.Thanks Sir .Salute

    August 26, 2016
  2. Shyam said:

    Is it like shares accumulation strategy of 100s of scrips like bacteria mutation?

    August 26, 2016

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