What is the Attitude of a Professional Trader

Attitude

Who doesn’t want to have the attitude of a professional trader? How does he make profits?

What are the things they are doing and how can we describe their actions and their attitude.

We want to provide the trader with the tools to create the right kind of trading attitude.

What kind of attitude does some one have that make him successful.

 

 “It’s a fundamental shift in attitude that accounts for their success, not some brilliant realization about the market, as most people erroneously assume. This erroneous assumption is prevalent among traders simply because very few of them really understand, at the deepest levels, just how critical a component attitude is in determining one’s success.”

The list below comprises a number of different observations from working with traders of all shapes and sizes, and is equally relevant to all. Some of the information is rehashed and/or might sound cliché.

How to Become a Professional Trader

They are experienced – The only true way to make every day profitable comes through experience, and countless hours learning is crucial to longevity of success. One attribute a profitable trader has is that these traders knows the market very well. and they followed their products for hours. They know what to trade, when to trade and when to take profits. None of them became a millionaire overnight. Learn from experienced traders at tastytrade.com You can follow and see how experienced people trade every day. Watch professional and profitable trader attitude.
They know the risk they take –   The best traders we know of understand their limits. From every trade they use they know the risk they take. They can use a different strategy with the same underlying so that they can make profit with taking less risk. Staying small is also a very good way to keep the risk at a minimum.
They trade to make money – They understand the strengths and possible pitfalls of what it is they do for a living, and use that knowledge to curb their emotional output. They trade small and don’t have to worry if the position goes against expectation.
They have an edge – They understand that without it they wouldn’t last long. The edge is applying the right kind of strategy and selecting options with high probability of profit. If in general you set up trades with a probability of profit of 60% or higher, 6 out of 10 trades will be profitable. If you take profits aggressively the number of successful trades will go up.
They have a game plan – Each trade is planned and opportunities are scouted for before any trading takes place. They steer away from the killer of all killers: over trading. A profitable trader attitude is some one who has a Trading Plan and stick to it.

They think about the trade – Focusing on making too much money can destroy your means to objectively assess the trade itself. Think take Implied Volatility, Strategy, Probability of Profit, Risk / Reward, Delta’s into account.

They are constantly learning – Just when you think you know it all about trading, a new curve ball gets thrown your way, not to mention there are continued means and methods to be learned about making money. Markets are changing. We have been in an up market for many years this may change soon. When the market changes your trades should also change.

They Selling Options – They sell options to receive options premium instead of buying options. More options expire worthless than make money. So if the option you sold is expiring worth less or you may manage early you can pocket the credit received.

They manage risk – Regardless of how much conviction they have on a trade, they will still do what they can to avoid the potential of any losses and understand rule #1 about trading: anything can happen. Risk Management is best done at the set up of the trade. Keep your position size small and don’t trade too many contracts. Trade small and trade often and your are not in a stress when trades goes wrong.

They take profits – Waiting too long can cost you a lot. If your trade reaches 50% of it’s maximum profit professional traders close it. It is hard to get the last buck out of your trade and it is better to have a winner than to see the trade turning into a looser.

They are active – It is about the numbers, a very crucial part of trading. Enter trades in a concise matter with the same probabilities, will help you. The more you stick to your trading plan and trade often the more the numbers will play out.

They have patience – Money will come when volatility changes. After we have set up a trade we will wait. In general the volatility drops within a few weeks and we will close the trade with a profit and some times we keep the position to end and hope if it expires.

Conclusion

 You will become a trader with a professional attitude when you follow the rules outlined above. You will focus on winning trades instead of big gains. The risk you take is determined at order entry. You like to sell options and receive option premium. You have an edge when entering high probability trades. And they manage positions early to increase the number of winners.

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