i mean can anybody spot and explain the specific difference between retail traders trading style and professional traders trading style?
i am a newbie, any suggestions are most welcome.
Guess, no one will be able to articulate the trading style of RJ. In fact, not just RJ…it would be difficult to interpret the exact trading style of any professional trader. Each professional trader will have some sort of edge, which obviously the trader would like to shield from the public.
From my understanding, I feel the following 4 points differentiates a professional and a retail trader -
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Capital - @nithin ithin keeps saying this and he is absolutely right about it. Most of the retail traders trade with ‘scared capital’, meaning they are always worried about losing money or they are too quick to book profits. Further, most often than not, retail traders are quite reckless with capital allocation. Professionals on the other hand allocate capital smartly and their capital is more patient, meaning they give their trade enough time to evolve.
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Risk management - Professionals understand the significance of risk and also ways to mitigate risk. They do not take large naked positions.
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Expectation of return - Professionals understand very well what and how much to expect from the markets. Even if they aim from small, they aim at consistent returns. They do not have astronomical return expectations, much like a lot of retail traders
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Clarity of thought - Professionals have a great degree of clarity of thought. They will exactly know what kind of opportunities to chase and what not to chase. Retail folks on the other hand feel compelled to trade every ‘opportunity’ they come across.
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thanks for you timely suggestion,
regards