Who is an amateur trader? How do you know an amateur trader? How do you know if you are an amateur trader? All these are questions I have answered in this article.
Continue reading to find out!
Top 9 Signs to Know If You Are an Amateur Trader or Not
If you continue to think like an amateur trader, then I’ll presume you’re intentional about failing as a trader. Amateur traders do not scale. They are always in cycles, “looking for what is not lost.”
Having traded for 15+ years and engaged more than 100 traders, here are common signs I look out for to know if you think like an amateur or a professional:
1. Amateur Traders Do Not Enjoy Trading
These set of people are just trading because of the money. Zero thrill, zero passion. They just want to make money. Sadly, if you’re that focused on money, you’re unconsciously leaving cracks for your emotions to influence you.
2. Risk Tolerance
Most amateur traders do not even know their risk tolerance. Some claim they know a lot about risk management; ask them what their risk tolerance is, and you’ll be surprised at their answers.
Professional traders know and understand their risks and have developed a trusted strategy to contain and maintain them.
3. Overnight Profit
Amateurs think trading is a get-rich-quick scheme. But the truth is, if you rush in, you will rush out.
You can’t start trading today and become a millionaire tomorrow. The chances are close to being impossible.
4. Overtrading
Another way to know if you are an amateur trader is if you struggle with overtrading. Amateurs believe they have to be in the market all the time.
But that’s false thinking. You only need to identify better opportunities and enter them. More time in the market doesn’t translate to more money. FOMO is real, and most amateur traders are victims.
5. Amateur Traders Always Blame the Market.
They never want to accept that they were wrong. They are egoistic individuals who will never take responsibility for losing money. It’s always the market’s fault. Always.
6. Trading Plan
Amateur traders rarely have a plan. They claim they know what they’re doing, but in the actual sense, they are just doing “trial and error.” He who fails to plan plans to fail – it applies in every aspect of life, including trading.
7. Price Action
Most amateur traders do not understand the concept of price action. As a result, they are always looking for one “magic” trading system that can turn them into millionaires while forgetting the basics of trading – price action.
8. Overconfidence
After making a few profits over a short period, amateur traders like to position themselves as the god of trading. Classes here and there without a long-term proven record. In no time, you’ll see them crashing back to the ground.
9. Amateur Traders Panic When Losing Money.
Almost all (if not all) pro traders know and understand that to make money, you must be willing to part with some. Of course, losses are bad and can ruin your confidence. But the ability to overcome that feeling is one of the pillars that position you to become a pro trader.
Conclusion On Ways To Know If You Are An Amateur Trader
Now, the big question is: ARE YOU SURE YOU ARE NOT AN AMATEUR TRADER?
The signs I’ve discussed in this article should help you answer these questions effortlessly. However, should you have further questions, don’t hesitate to share them with me in the comment section – I’ll be glad to help.
Also, you can register for my trading academy and enjoy a one-on-one trading session with me. At The Trade With Mac Trading Academy, I’ll hold you in hand throughout your journey of becoming a pro trader. It’s affordable, and registration is open!