Here are the ten steps that indicate you’ve progressed from novice to pro trader:
- You take your stop losses with little stress or emotional stress. Also this indicates that you are using the appropriate position size and are willing to accept losses as part of the process.
- You’ve stopped trading at random and are only trading pre-determined entry signals now.
- As a Pro Trader, you’ve cut back on your trading in an attempt to make up for a string of losses. Also you keep your risk size consistent rather than increasing it due to greed.
- You stopped seeking other people’s advice and began trading with your own system and strategy.
- As a Pro Trader, You also stopped trying to get rich and instead concentrated on protecting the money you already had.
- You transitioned from gambling to trading with a profit margin.
- You stopped trading the current price action instead of attempting to predict the future.
- As a Pro Trader, You’re patient when it comes to winning trades, but impatient when it comes to losing trades.
- You place a high value on a 20% annual return on investment.
- You are aware of, and agree to, the one-percentage-point risk rule.
- The Path from Novice to Pro Trader
- Amateurs believe that trading is easy and that they can make money quickly. Professionals are aware that it is a lot of work and are content with gradually accruing wealth.
- Amateurs look for easy money in trading, but they are the ones who will lose their account balances to professionals due to the absence of risk management and discipline. To keep your hard-earned money, you must control your mind, properly size your positions, and only follow the signals of a winning system. Don’t give money to high-frequency traders and professional traders.
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