What enables professional traders to be successful in trading? Why is it difficult for amateur traders to achieve the same level of success despite investing a significant amount of time and effort into research and training?
One of the main factors contributing to the success of professional traders is that, in most cases, they do not trade with their own funds. It is easier to remain objective and follow your trading strategy when your capital is not at risk.
Most amateur traders have limited funds, making them more susceptible to the fear of losses, resulting in them not sticking to their trading plans. Or, after a series of losses, they start taking on more risk than their strategy allows.
When your money is at risk, it is a psychological state that is difficult to overcome. Remember, this is not the only reason, but it is the most significant one.
"Professional" refers to individuals who make a living through their own skills. Most professionals do not rely on trading to make a living, but seek their livelihood through trading. I have worked as a bank trader/market maker for many years, engaging in commodity, forex, and options trading. I managed an investment portfolio of over 10 billion US dollars and developed algorithms for a hedge fund. However, now I am an independent proprietary trader, and there are some significant differences between the two. Here are some tips that may be helpful to you...
As a bank trader, you can avoid risks because you bear the risk of clients as principals; whereas proprietary traders are willing to take risks.
As a bank trader, whether willing or not, you are always in the market; as a principal, I can decide when to enter. This is a major advantage.
As a bank trader, I have unlimited capital, so I constantly "buy into the wind" to provide liquidity for clients wanting to withdraw funds. As a principal, I must be very clear about unrealized capital losses and plan accordingly.
The lessons learned as a successful bank trader actually hindered my independent entrepreneurship. It took me many years to "fix what wasn't broken."
Compared to when I first entered this industry, the technology available to retail traders today is very advanced. Retail traders have no reason not to succeed, I believe many have succeeded; it just requires discipline, focus, humility, and understanding what is effective for your specific situation. There are many different ways to make money in the market, finding the one that suits you takes time and diligence.
For me, I knew too much. I thought with my experience, it would be a complete success. Everything I saw was an opportunity: I created algorithms, then acted on instinct; I traded 20 futures markets at the same time, then 6, then 3, then 2; I traded weekly, then daily, then intraday; I switched to stocks, then back to futures; I registered as a CTA, then closed it; the cycle continued... I had to slowly cut back and retrain my thinking because arrogant professionalism hindered me.
Therefore, you should know that many 'professionals' are not particularly special, if I can do it, you can do it too. The most important thing I can pass on about my career is that as long as I persist, I can succeed.
I hope this is helpful.
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成熟投资者：格局，概率，取舍。没有格局必然急功近利。不计概率会把运气当技术。不懂取舍，有所不为，最后必落入陷阱和圈套。
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