The Professional vs. Amateur’s Reaction to a Losing Trade

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? 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.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..

Continue Reading