A stock trader is an individual who buys and sells stocks and shares through a stockbroker. There are two types of traders – pro traders and amateur traders. Pro traders are those who trade stocks for a living, whereas amateur traders are those who do it as a hobby.
Amateur traders tend to lack experience and make rookie mistakes. They often don’t have a plan, and they trade impulsively. On the other hand, Pro traders have years of experience under their belts. They can strategically trade because they know how the markets work. Click here to have a look at the Saxo capital markets.
Amateur traders tend to overtrade and blow their accounts. They don’t have a money management plan in place, and they don’t stick to their rules. On the other hand, pro traders are more disciplined with their money and know when to take profits and when to cut losses.
Amateur traders trade based on hunches and emotions. They buy high and sell low. On the other hand, pro traders have a trading plan and trade based on technical analysis and fundamentals.
Amateur traders are risk-averse, and they don’t take enough risks. They want to make sure they always win. Pro traders, on the other hand, are comfortable with risk. They know that they will lose sometimes but will make money in the long run if they stick to their trading plan.
Amateur traders get emotional when they lose money. They start blaming others and making excuses. Pro traders, on the other hand, take responsibility for their losses. They learn from their mistakes and become better traders as a result.
Amateur traders often don’t understand the markets well and don’t know how to read charts or use indicators. On the other hand, pro traders are well-educated, and they know what they are doing.
Amateur traders trade with essential tools like a laptop and an internet connection. On the other hand, Pro traders have access to advanced tools like charting software and trading platforms.
Amateur traders often don’t have mentors who can help them improve their trading skills. On the other hand, Pro traders have access to mentors who can teach them the ropes and help them become successful traders.
Amateur traders often trade alone. They don’t have anyone to help them or give them advice. On the other hand, Pro traders have a support system in place. They have friends and family who can help them out when they need it.
Amateur traders trade from their homes or offices. Pro traders, on the other hand, trade from dedicated trading rooms. It gives them an edge over amateur traders because they have better access to information and can focus on their trades without any distractions.
Amateur traders trade part-time, so they don’t have enough time to research the markets and analyse stocks. Pro traders, on the other hand, trade full-time. They have the time to do all the necessary research and focus on their trades.
Amateur traders often don’t have a strategy. They trade randomly, and they don’t know what they are doing. On the other hand, Pro traders have a well-defined strategy that they stick to.
Amateur traders often start with small trading capital. It limits their ability to make profits in the market. On the other hand, Pro traders have a significant trading capital, which allows them to take more significant positions and make more money.
Amateur traders give up easily. They don’t have the patience to stick to their trading plan. Pro traders, on the other hand, are persistent. They know that success doesn’t come easy, and they are prepared to work hard for it.
Amateur traders often have many distractions, and they can’t focus on their trades. On the other hand, pro traders can stay focused, and they don’t get distracted by outside factors.
Amateur traders often break their rules, and this leads to losses. On the other hand, pro traders can stick to their rules even when things are going bad. It allows them to make money in the market even when the odds are against them.