Amateur traders

How To Separate Amateur Traders From Professional Traders?

Wed Dec 30 2020 06:06
Traders have divided into two segments always, amateur traders, and pro traders. But what is the actual difference between them? 

An amateur trader may want to become a professional trader. So he/she is always looking for new initiatives to achieve that dream. Due to such dreams, it becomes important to understand the difference. 

If you don't know the difference then must read this post till the end. We have a bonus section for you in the end.  

Things That Separate Amateur Traders From Pros 

There can be many things that separate professionals from amateur traders. But what is more important to you as a trader? The list of differences between amateur trades and pros can have thousands of things. 

But here we divided them into two basic sections or levels. The first level of differences is about skills, knowledge, and capability. 

While the other is psychological level differences between amateur traders and pro traders. Here we will help you find the difference at two different levels. So let's check them out.  

#1. The difference in skills, capability & knowledge 

The first level of difference is related to skills, capabilities, and knowledge. Various skill-sets are required to get pro status for amateur traders

Traders go for trading courses, tutorials to learn how to trade. Because their capability and knowledge make the difference. So let's start separating amateur traders from professional traders with such differences. 

Learning ability 

Learning ability is a major capability difference. A trader who can learn forex trading and stock-trading together has more ability. Amateur traders are not so lucky initially. 

Many best trading courses for beginners are there. That is why amateur traders are advised to choose free trading before live trading.

Knowledge/information sources 

Amateur traders have fewer knowledge sources as compared to professionals. Depending upon a single trading strategy is not a profitable trading system. Professional traders have various sources for their trading accounts. 

Whether they are in cryptocurrency or trading stocks, bonds in various financial markets. Pro traders use different chart patterns in charting. They take part in webinars and seminars for trading education.  

Screen time 

If you understand the algorithmic trading, price charts, and typical trading charts. Then you can count yourself as experienced traders. If more screen time is spent to understand Algo trading, then you are a novice trader. 

Amateur traders should allow mentoring in a live trading room or trading chat-room. Also, they can go for a starter course or follow a trading course to understand market data. 

Technical Things 

Amateur traders always hesitate to work with more technical things. While a pro trader is always comfortable with technical analysis and fundamental analysis. 

Technical signals and technical indicators are also used by a pro trader. Traders should know support and resistance levels, moving-average, volatility, trendline, support line, etc. 

Ready to switch 

Pro traders bounce to new things in a short time-frame. While amateur traders take a lot more time after an introduction to new things. Pro traders always extend their trading range switching to new trading methods. Whether it is mobile trading, automated trading (trading robots), or technical trading.  

Cost effect trading 

Trading is beyond moving order entry to uptrend and downtrend. A pro trader calculates trading commissions (brokerage) before he trades on margin. 

While amateur traders use trading systems without calculations. Risk-management is also an important thing to consider. A pro trader always has a risk-management plan and uses stop-loss features.  

#2. Psychological differences 

Other than skills amateur traders and pro traders have different trading psychologies. If you have attended any webinar or seminar in an online trading academy, then you may know. Even there are some online courses on money trading telling about trading psychology. 

Confidence level 

Amateur traders are less confident as compared to pro traders. Pro traders use trading software such as Metatrader with a confident approach. They buy or sell assets confidently to invest money. 


An advanced trader is more patient than a beginner. Controlling your emotions is always among the list of trading tips in trading guides. 

No matter if you are trading forex or involved in futures trading, you must control your emotions. Amateur traders get panicked having a look at trading signals showing a loss. 

Quick rich dream 

Pro traders never have a quick rich dream when they start stock-market trading or currency trading. They believe more in technical knowledge and experience. 

They know how to use the pullback duration. While amateur traders trade with a trend trading method. They follow the market sentiment (bearish or bullish).  


Pro traders always have the right motivation source. While amateur traders fear to lose money. Pro traders use advanced trading tactics for a profitable trading journey. Newcomers are not so good at motivating themselves in hard times. 
There are always distractions around new traders. But the pro traders always choose the best path towards success. They use various active trading methods to make money in any financial market. 

But the amateur traders always follow an online broker and his blind myths only. Brokers may tell the newcomers about the past performance of an asset only. But a pro trader looks for the price forecast also. 

Are You Among Amateur Traders? 

Wait before you answer this question to yourself. You may ask for something for us. Is it important to know if you are an amateur trader or not? Yes, it is very important. Because if you are among amateur traders, then upgrade yourself. 

However, you are lucky, if you are not among amateur traders. Being an amateur trader is not a curse or a bad thing. But it is always important to jump to the next level in trading and It is directly linked to profitability. 

Find your status easily! 

But how to identify your trading experience? How could you find out if you are an amateur or a professional? You must find it out before you start trading for a living. So below are some standards that a professional trader has. 
Homework: A novice trader always runs away from homework. If you do so then you are among amateur traders. A professional trader always analyzes assets and the market before investing. 

Consistency: If someone finds trading a boring thing after a few days of trading, then he/she might be an amateur trader. Because a professional trader has consistency in his efforts. 

Interest: Interest level is a major indicator. It indicates that you can achieve success as a day trader or not. If you don't have that level of interest. Then it is better to give up before losing more money in the market.

Reason: Ask yourself why you have chosen to trade as a career. Is there any particular and strong reason? If no, then it might be difficult for you to shine in the forex market or any other.  

Conclusion: Amateur traders 

It may take time to figure out that you are an amateur or advanced trader. But never believe in the myths around you. There may be myths like professionals never disclose trading secrets, isn't it? You can learn from professional traders if you are counted among amateur traders.  

No matter which trader is trending in your region or market. You can follow him to learn new methods of trading every day. Always keep in mind the universal rule about discipline. Every sector requires discipline. So if you are disciplined in trading, then you can succeed.  

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