Here are some key secrets of professional traders:
1. **Position sizing is inversely proportional to risk**. Professionals size their positions based on the risk of each trade, using larger sizes for lower-risk trades and smaller sizes for higher-risk trades.
2. **Maintain discipline and adhere to your trading plan**. Professionals stick to their strategies and rules, even during losing streaks.
3. **Avoid the crowd and make contrarian bets**. Professionals position themselves ahead of or behind the crowd, not with it. They avoid stock chat rooms and boards.
4. **Continuously update your trading plan**. Professionals regularly refine their plans to incorporate new ideas and eliminate outdated ones.
5. **Embrace simplicity and focus on price action**. Professionals keep things simple, focusing on what matters most - the price action. Complex indicators are used to confirm what the price is telling them.
6. **Accept losses as part of the process**. Professionals understand that losses are inevitable and embrace the lessons they provide. They are willing to take breaks when needed.
7. **Separate your trading and personal life**. Professionals maintain a clear separation between their personal and trading activities to avoid interference with their performance.
The key difference is that professionals have a well-defined plan, the discipline to execute it, and the ability to properly size their positions based on risk. This allows them to generate consistent profits over the long run.
