What is the Attitude of a Professional Trader
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.”
How to Become a Professional Trader
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.