Does it mean that you are an expert just because you make a lot of profit? The amount of profit cannot be used to measure the value of a trader. Yes, you must be doing something right if you are making a frequent profit. However, that does not determine if you are an expert or not just by your profit. This is quite a common misunderstanding in the forex industry. Making a large profit is only one side of the forex market. Majority of forex traders tend to lose most of the time after they have experienced profit. But why? So many traders fall into a fantasy land where they make an endless amount of money at the beginning. Many beginner traders tend to gain profit at the start not knowing the importance of technical analysis of the market. The experts on the other hand who stayed became wealthy and stayed that way, continue gaining profit, are all knowledgeable when it comes to the basics. Experts have dialed many ways to control their minds to be set right to be a trader. Understanding of the market is a must know anyway. Expert traders wait patiently until the right opportunity comes. Opportunity comes to everyone. What differentiates the experts and the beginners is that experts know when the opportunity has come and knows to take advantage of it. Making profit by luck is possible, and yes luck is also very important. But can you profit with luck every time? How an expert trader is determined is not by how much the person gained, it’s about the precision and the frequency of results. Profit can’t be maintained by luck. It is maintained and is a result of precision and strategical execution. You shouldn’t worry because you’re not gaining any profit right now. You should be building your skill sets to be a better trader by experiencing many trading situations of losses and wins. If you invest in your time to improve, your results are guaranteed to increase more frequently and will become more stable.
" Are you an expert when you win, a beginner if you lose" Based on your question, hedge fund managers who are successful then flame out have morphed from being experts to being beginners.
there are quite a few valid points, eg precision entry is important, profit can't be maintained by luck, ... result of precision and strategical execution ... But the word EXPERT doesn't seems appropriate. trading is not a rocket science. We don't even need university education. we don't need to know complex science, complex economic understanding, complex maths (not even linear equation y = mx+c. Just simple + and - will do). so perhaps SUCCESSFUL & CONSISTENT are more appropriate.
This indeed is a great piece of advice. As a trader myself, I have been trying hard to work upon my trading skills. Its difficult but definitely not impossible.
Long term traders who are serious about his business and treat it like a business have a business plan - a method, a system - to trade the market. Small losses are part of doing business, it's days like yesterday when ES sold off 50 handles intraday that experts take as much as the market gives them. -Keep your system simple. -Keep your losses small. -Always take your Edge, this is your only opportunity to make $. -Have the patience of a seasonal lake, that waits for the rains to come every winter. -If you are thinking about how much you are down or up and trading because you are emotional and thinking about money - you will find trading to be a very frustrating venture. -Be totally detached to your trading results - good luck with this. -Also, be hard as nails, tough minded and disciplined like a machine.
While you were understood Long term traders is a contradiction. I would simply say traders who are serious about his business and treat it like a business..... your post is serious one and notto be taken lightly.