5 Pro Trader mistakes that you can avoid
From losing focus to overusing fancy tools, pro traders might miss the target if they don't check these recommendations
There are key distinctions between a trader and a professional at the trade. Whenever there is a new system in place there are initial or first adopters of such a system. These people would diligently understand the rudimentary and analytical basis for the creation of such a project or system.
What is trading?
Trading can broadly refer to the exchange of goods and services, most often in return for money. This would naturally involve two parties to the transaction: the buyer and the seller. The term trading has been in inception for centuries and would literally remain as the world continues to interact in any form of commercial transaction.
Who is a trader?
A trader simply put is someone who is involved in buying and selling. This can range from various items such as goods and services to a global trading system between nations and continents. As a trader, one is expected to maintain some standard principles in order to remain relevant in the field.
However, trading in the blockchain and cryptocurrency space has taken a whole new dimension such that everyone, no matter their status, race, sex, religion can engage themselves in crypto trading.
Who is a professional trader?
A professional trader is not the one who has more trading screens, better equipment, or better indicators. Rather, a professional trader can simply be defined by how he approaches his trading mentally and how he manages his trading routine on a daily basis. This seems to distinguish the pro trader from an amateur trader who can easily acquire basic skills of trading by following a few principles and changing his approach.
There are some key mistakes made by the pro traders themselves which can be attributed to amateur traders. These include but are not limited to the following:
Distraction and loss of focus: This might happen when a pro trader starts watching YouTube videos, he is online on social media platforms, or watching TV while trading. The pro trader loses focus easily and does multiple things especially when there is no setup insight or markets are currently slow. He, therefore, misses trades easily, makes mistakes when calculating his position and when executing trades.
Overconfidence after a winning streak: The pro trader believes that after a few winning trades in a row he has acquired superior skills or that his trading strategy is suddenly a money machine and cannot fail anymore. The problem is that after a few winning trades, pro traders use too much risk and take trades that are too big or violate their trading rules because they feel that what will happen next is assured.
Take a loss too personal: Most pro traders find it hard to accept that their trading idea was wrong which is going to make them lose money. Such traders can’t accept to be wrong and when they see that price is about to hit their stop-loss order, they sometimes will do one of the following things:
Setting a stop-loss further away to delay the loss
Adding to a losing position to get out of the loss faster when price turns around
Taking off the stop-loss order completely because eventually, the price will have to turn around
Ignoring the job: For the professional trader, trading is a regular job. The professional trader does not trade for the excitement or because he wants to make a fortune with a few lucky trades. So, therefore, trading is not an easy profession and it requires time, hard work, and a lot of hustling before you can make money. In the end, being a trader is a job like many other jobs so if a pro trader does not take his job seriously, then he shouldn’t be involved in the trade in the first place.
Using excessive tools: Most pro traders naturally believe that they would use all sorts of tools to actually pinpoint or probably guess to a very narrow range for which direction the market would tilt. However, the market especially in the crypto space is very volatile and most times disrespects all fundamental tools and analysis to predict price action. So there needs to be some level of caution on all sides.
The Klever Exchange in partnership with Tradingview is creating an opportunity for more traders to enhance their skills and use the chart to their benefit. This would in the long run encourage people to get the best out of their trading experience using the Klever exchange.
Simplicity is Klever
Follow me on Twitter