"I could divide my life into two parts: before turning pro and after. After is better."
These words, written by Steven Pressfield in his book "Turning Pro," capture the essence of the profound transformation every successful trader undergoes. This shift from amateur to professional is not about a winning trade or a lucky streak; it's about the habits defining your approach to the markets.
Pressfield writes: "The difference between an amateur and a professional is in his habits. An amateur has amateur habits. A professional has professional habits."
The Amateur Trader
The amateur trader is a study in self-sabotage, often undone by a lack of focus and a craving for instant results. Picture this: you sit down to analyze charts, and your phone buzzes with notifications: emails, social media updates, and the latest market gossip. You check it all, second-guessing the positions you had prepared in the first place. This lack of clear thinking is deadly to the amateur trader. The amateur doesn't trust his edge and is seduced by the superficial, changing his mind and strategy.
The amateur dreams of quick riches, expecting a few trades to turn a modest account into a fortune. He might chase a trending stock without a plan or over-leverage his positions, hoping for a big win. When it doesn't happen, he abandons his strategy, jumping to the next shiny idea without letting his edge play out. He has an addiction and wants what he wants now… the restlessness doesn't abate, and the pain doesn't go away.
Fear also grips the amateur trader. Losses terrify him, leading to hesitation, holding a losing position too long, hoping it'll turn around, or exiting a winner too early, scared of giving back gains. This fear often stems from a shaky sense of self-worth; he feels like an impostor, believing profits are "stolen" rather than earned. Society's bias toward a steady paycheck reinforces this, making the ups and downs of trading feel reckless.
The amateur often leans on others, copying trades from social media gurus without understanding why. This dependency stunts his growth, leaving him at the mercy of someone else's decisions. The amateur equates "being a trader" with constant action. He overtrades, taking positions even when the market offers no edge, to stay busy.
The Professional Trader
The professional trader, by contrast, is a model of discipline and resilience. He has habits that turn trading into a craft rather than a gamble. Consistency is his foundation. He shows up daily, reviewing charts, updating his watchlist, and managing his open positions. He has a routine, even when the market is quiet. He stays focused, ignores distractions, and focuses entirely on his analysis and decisions.
Patience defines his approach. He doesn't force trades; he waits for setups that match his plan. A breakout with substantial volume or a pullback to a key support level. The professional is patient, preserving capital for the best opportunities. Order is his ally. He adheres to clear rules for entries, exits, and risk management. The professional might risk no more than 3% of his account per trade, with a stop-loss set at a technical level, ensuring losses stay small and manageable, thereby reducing the risk to a game of probabilities rather than a chaotic gamble.
Courage sets the professional apart. Fear doesn't paralyze him; he acts decisively, cutting losses quickly. Responsibility is non-negotiable, and he accepts no excuses; losses aren't blamed on the market or bad luck. He anticipates scenarios. What if the market gaps are down? What if a news event spikes volatility? The professional is prepared, ensuring he is never caught off guard.
He doesn't boast or hide. A big win isn't a social media post; a loss isn't swept under the rug. The professional does not show off; he focuses on the process. Mastery is his pursuit. He studies market patterns, refines his edge, and seeks mentors when needed. The professional masters the skill of technical analysis. Detachment protects his mindset; he doesn't take wins or losses personally or tie his identity to a trade.
The professional does not take failure or success personally, maintaining emotional balance, knowing adversity is part of the game. The professional self-validates, finding confidence in his own process. Finally, adaptability keeps him relevant. Markets evolve, and so does he, tweaking his strategies as conditions shift. The professional reinvents himself, staying ahead of the curve.
Conclusion
Turning Pro isn't about a trading formula or a magic indicator; it's a choice to trade with intention and integrity. Turning Pro is free, but it's not easy. All you have to do is change your mind. It's about swapping amateur habits, such as fear and greed, for professional ones, like focus and patience. The path isn't smooth, but the payoff is immense: not just the profits but the power, freedom, and self-respect from mastering your craft. What we get when we turn pro is our power and our freedom. We find our self-respect.
Make the choice. Trade like a professional.