Novice Trader vs Experienced Trader

We’ve all been there. Each of us started our trading careers as novice. High on expectations and optimism. Low on experience. A raw untested method. A personal psychology likely to get in the way of our success.

What we will bring to the table when starting out is relevant.

Every traders weakest link?

Themselves.

So here are ten characteristics that distinguish novice traders from the more successful:

It’s not rocket science. Enjoy the journey.

NOVICE TRADER
1. Thinks Trading is exciting and full of adrenaline
2. Focuses on avoiding losses at all costs
3. Thinks an 80 / 20 win loss ratio is essential towards success
4. Constantly looks for big trade wins over shorter term time frames
5. Enters trades thinking they are right
6. Has unrealistic profit expectations – 100% + per annum
7. Hates to be wrong which leads to poor risk management
8. Believes that preying marketers are selling the magic formula
9. Thinks the media understands the markets and trades News
10. Believes their methodology has to be complex to be profitable 

EXPERIENCED TRADER
1. Knows that Trading takes patience, is methodical and often has boring processes
2. Knows that losses are part of the process and accepts them
3. Realises that success can be achieved with a 50 / 50 win loss ratio
4. Is methodical and grinds it out over the long haul
5. Enters trades knowing they could be wrong
6. Has realistic profit expectations and understands prolonged losing streaks are possible
7. Knows they will be wrong often and always applies strict risk management strategies
8. Understands that the No 1 secret to trading is that there are no secrets
9. Knows that news is simply noise and is not part of their trading strategy
10. Keeps it simple!