6 Things that separate pro traders from amateurs

Are you interested in trading? Are you a beginner or an experienced trader looking to up your game and get to the next level of success? Knowing what sets pros apart from amateurs can be a significant first step to ensuring that you have all the knowledge and confidence needed for successful trades.

In this article, we will discuss six primary differences between professional and amateur traders that aspiring investors should know about before entering the market. Read on for more information about how pro traders outperform amateurs.

Pro traders always have a plan

Pro traders know they need to approach trading with a plan if they want to succeed. Amateurs often think they can jump in and wing it, but pros understand that this is not a viable strategy for the long term. They know that before entering any trades, it’s crucial to have a pre-defined set of rules stating what decisions will be made in different market scenarios. It could include having exit strategies set up upon entry or considering expected price movement before making any moves.

Pros also look into the fundamentals behind their trades and weigh all available options before committing to anything. In short, having a well-crafted plan separates pro traders from amateurs – something all severe investors should strive for.

They’re not afraid to take risks

Professional traders are quick to take measured risks when making their trades. They understand that trading is inherently risky, so instead of avoiding risk altogether, they use it to their advantage and look for opportunities in the markets where trades can be made.

Amateurs often try to ‘play it safe’ by only entering low-risk trades – which can backfire if the position doesn’t perform as expected. Pros are confident in taking calculated risks and using these moments to increase returns exponentially. Saxo Bank offers an excellent trading platform that provides various tools and resources to help traders identify and take advantage of risk-reward situations.

They use stop losses to protect their investments

Stop losses are a great tool that professional traders use to protect their investments in case of unexpected market movements. When setting up a stop loss, the trader enters an order indicating that if the asset’s value falls below a certain point, it will automatically be sold – preventing further losses and protecting the trader’s capital.

Amateur traders often overlook this tactic or need help understanding its importance in trading, exposing them to more significant risks. Professional traders recognise the importance of stop losses and implementing them as part of their trading strategy to ensure the maximum safety of their investments.

They’re patient and disciplined

Trading involves waiting for the right moment to enter a position and having the discipline to stick with it until it’s either met its goal or gone sour. Professional traders understand this and are willing to wait patiently for lucrative opportunities instead of panicking and making hasty decisions.

On the other hand, amateur traders often get impatient when their trades don’t return immediate results, leading them to make emotionally-driven trades that can end up costing them dearly in the long run. Pros know how critical patience and discipline are when trading, so they always remain composed to make informed decisions.

They know when to cut their losses and walk away

It’s important to know when to cut your losses and walk away from a trade, especially if it’s not performing as expected. Professional traders understand this and have the discipline to close out positions that have gone south instead of hoping for a turnaround.

Amateurs, on the other hand, often fall into the trap of ‘hope trading’ – where they hold onto losing trades hoping that things will eventually turn around. Unfortunately, this is only sometimes the case – pros stay disciplined and are willing to take their losses when needed instead of waiting until it’s too late.

They use proper risk management

Risk management is essential to any trading strategy, and professional traders understand this better than anyone. They use various techniques, such as setting limits on the amount they can lose per day or week and using stop losses to protect their investments.

Amateurs often need to implement proper risk management tactics into their trades – leading them to take risks that are too large for their accounts. Pros keep this from happening and ensure that each trade is subjected to a strict set of rules to minimise potential losses.


Being a successful trader takes more than just luck – it requires skill, experience, and knowledge. Those who strive for excellence by incorporating these six things into their trading strategies are sure to be successful in the long run. With dedication and perseverance, anyone can become a pro trader.

The key is always to remain disciplined and patient and know when to cut your losses – only then will you find yourself becoming a professional trader. Good luck.

Related Articles

Back to top button