6 Habits of Professional Traders you MUST adopt for Success

A professional trader is not defined by the number of trades he makes, but by his mentality, routine or habit. He approaches trading with discipline, focus, and a clear strategy.

In this blog post, we will discuss six key differences between professional and amateur traders (how these two traders react to trading situations) and provide actionable tips or productive habits of pro traders that amateurs can adopt to elevate their trading skills:

1. Professional traders are 100% focused on their task

Pro traders cut off all forms of distractions during their “trading time”. They monitor charts exclusively and value concentration. Amateur traders, on the other hand, are easily distracted, often multitasking during trading hours, which can lead to missed trades.

How to improve:

• Set up a dedicated trading space where you can minimize distractions.
• Take breaks when needed, but avoid multitasking during trading hours.
• Use downtime to review your past performance and identify areas for improvement.

2. Pro traders follow and stick to their trading plan

A professional trader has a clear trading plan. He waits patiently for trade setups and regularly reviews his past performance for continuous improvement. An amateur trader, on the other hand, tends to watch charts aimlessly, under the false belief that more screen time will improve his skills.

How to improve:

• Develop a trading plan that outlines your entry and exit criteria.
• Wait patiently for trade setups and avoid overtrading.
• Regularly review your past performance to identify areas for improvement.
• Use screen time productively by focusing on chart analysis and trade execution.

3. They don’t become overconfident after a winning streak

After a series of winning trades, an amateur trader may become overconfident. This often leads to increased risk-taking and violations of a prop firm’s drawdown limit. A professional trader, however, remains disciplined even after a winning streak. He sticks to his plan, avoids excessive risk-taking, and understands that winning streaks are part of the trading process.

How to improve:

• Stay humble and remain disciplined, even after a winning streak.
• Avoid excessive risk-taking and stick to your trading plan.
• Always remember that winning streaks are part of the trading process and do not guarantee future success.

4. They don’t lose confidence after a losing streak

A losing streak can cause an amateur trader to lose confidence, impulsively change their strategy, and attempt to recover losses. A professional trader, however, accepts that winning and losing streaks are part of trading. He maintains confidence in their long-term strategy and adheres to his trading rules.

How to improve:

• Accept that losing streaks are part of trading and do not let them affect your confidence.
• Maintain confidence in your long-term strategy and stick to your trading rules.
• Avoid impulsively changing your strategy in an attempt to recover losses.

5. Professional traders don’t take losses personally

An amateur trader often struggles to accept losses. He may use tactics to avoid stop losses, leading to significant losses over time. A professional trader, however, treats each trade as one among many. He respects stop loss as an exit point and remains unemotional about individual trades.

How to improve:

• Treat each trade as one among many and do not take losses personally.
• Respect stop loss as an exit point and avoid using tactics to avoid it.
• Always remember that losses are a normal part of trading and do not mean or guarantee future failure.

6. They treat forex trading as a business and not gambling

An amateur trader often believes that trading is a quick way to wealth, making them prone to significant losses. A professional trader, however, views trading as a serious business. He understands that it requires time, effort, and persistence and treats it like any other profession.

How to improve:

• View trading as a regular job and treat it with the same level of discipline and professionalism.
• Understand that trading requires time, effort, and persistence. There is no such thing as a quick way to wealth in the markets.
• Be patient, and focus on building your skills and knowledge over time.

To improve your trading skills, you have to adopt these mindsets and habits of a pro trader. Self-analysis and adjustments are key to your transformation. The thing is, every pro was once an amateur who didn’t quit. So, don’t give up.