What it means to be a Professional Trader....

Hi Everybody,

Last week was an excellent example of what it means to be a “professional Trader”. Wednesday was good, with some good trades, then Thursday was hard with a number of losses, ands this is where most amateur traders get into trouble. After a few losses, Amateurs get lost, they worry, and start to second guess themselves. The trouble is that most amateurs trader spend all their lives trying to avoid losses, rather than just keeping them small. They get worried and even get mad at making a loss. These emotions are very destructive, because after Thursday, then are so angry at making a few losses, that they don’t take the trades on Friday.......................... And guess what, Fridays trades were brilliant. So the Amateur was so busy at being angry at making a few losses that they then miss out on the next big profits. This is usually a downward spiral that ends up in bankruptcy.........

The professional, on the other hand, does not mind losses. He knows that his (or her) job is to accept then but to keep them small. The Professional is then ready to take the next trades on Friday.

Even with -2R or -3R of losses on Thursday, as we will see, these are small to the BIG Profits on Friday where almost +10R was available to the Standard Trader. So this is the lesion for today, losses can and will happen, but it is not use getting angry, your Job (if you are to become a professional trader), is to accept then, but to just keep them small. Days like Friday will come along that will then clear all these small losses and put you back into Profit overall...

OK, let’s take a close look at Friday...........

Steve