Professionals vs Amateurs

[piphoe]

Well said Quantt!!!!! :idea:

 

[foroom lluzers]

I do agree the psychology is an important part, but for me the only way not to panic or make other mistakes is to have a robust trading system - by developing it and by testing it, you are becoming 100% sure in it and this is giving you the confidence and takes care of the psychological aspect, the other is automating the system, with automated system, you cannot make any mistakes (provided no bugs in the program)

That is what I am trading without automation.If automation has hiccups or disruptions , the lack of psychological skills will cost dearly.These will jeopardize the risk management.

 

[EnlightenedJoe]

Welcome back foroom. Missed you lots.

 

[Quantt]

That is what I am trading without automation.If automation has hiccups or disruptions , the lack of psychological skills will cost dearly.These will jeopardize the risk management.

From my experience, I am much more likely to make mistakes than my automated system, I can be hung over, oversleep, emergency at work, sick, on vacation, etc

The system will plug along nicely, you just need to monitor the servers and have a contingency in place...

 

[barjon]

From my experience, I am much more likely to make mistakes than my automated system, I can be hung over, oversleep, emergency at work, sick, on vacation, etc

The system will plug along nicely, you just need to monitor the servers and have a contingency in place...

Everyone’s dream that, Quantt. Just go about enjoying yourself while money pours into your account. I doubt it’s quite like that in reality, though

 

[Quantt]

Everyone’s dream that, Quantt. Just go about enjoying yourself while money pours into your account. I doubt it’s quite like that in reality, though

Yes Sir, I wish I had an ATM in the corner of my office chugging benjamins all day long, but in real life, I have losing days, weeks, months and years - it is all automated though

 

[Gastol]

Thank you for sharing information.

 

[EddyJones]

Difference in thinking, but words "Professionals focus on limiting risk and protecting their capital. Amateurs focus on how much money they can make. Professionals always take money from amateurs." are very handy)

 

[Arashimuro]

EddyJones, it's a great observation! When I was a freshman, I always thought about how to make more money, and now I think about how to reduce the risks =)

 

[Qsigma]

First we all need a definition to name professional trader.

Many sources define in many different way this term

But for me my definition is always is simple

Professional Trader
" A trader who able to make a consist, maximum gains from minimum risks known as a Professional Trader "

My definition is so simple. On that definition i never frame a way of trading,
mindset,timeframe, way of analysis... Nothing
I use special keywords consist, maximum gain, minimum risk. If any system any person any how able to do above is a simply a Professional Trader

There are million ways to trade, many time frames, many ways of analysis. Doesn't matter how if any one can make a consist maximum gains from minimum risks he/she is a professional trader

No matter how experience, age , education ... Nothing if able to do so they are professionals

Simply i tell this way

Let's say there is a person who trades using a coin flip. He has his own rule system for a entry, exit, and also for money management .
If he able to make consist maximum profits using minimum risks no matter how he trade he is a professional.

I think you all will understand this. This is the simple formula for any type of trader or investor. All try to do what i told.

So that is my frame definition for a professional trader