Here are the ten steps that show you have moved from a newbie trader to trading more like a professional:
- You take you stop losses with little stress or emotional turmoil. This is a sign you are trading with the right position size and accepted losses as part of doing business.
- You have stopped taking random entries and have shifted to trading only planned entry signals.
- You have stopped trading too big trying to play catch up after a string of losses. You keep your risk size consistent and not increase it based on greed.
- You quit asking other for opinions and have started trading with your own system and plan.
- You stopped trying to get rich and switched to guarding the capital you already have from losses.
- You switched from gambling to trading with an edge.
- You stopped trying to predict the future and started trading the present price action.
- You are patient with winning trades and impatient with losing trades.
- You respect a 20% annual return on capital.
- You understand and accept the 1% risk rule.
Amateurs think trading is easy and want to get rich quick. Professionals understand it is a lot of work and are happy with getting rich slowly. Amateurs are looking for the easy money in trading, while unfortunately they are the ones that will be giving their accounts to the professionals through a lack of risk management and discipline. Manage your mind, position size correctly, and only take the signals from a winning system to keep your hard earned money. Don’t be a donor to the professional traders and the high frequency traders.
Credit to : Steve Burns