The Difference Between Professional Traders and Amateur Traders

1. Heavy Positioning: With small funds, to double quickly, one can only operate with heavy positions. Some amateur traders have been trading for over a decade without ever doubling their capital, which indicates a problem with their trading system. Market trends are linear; there are only brief periods of significant market movements, while other times are sideways. There is generally an opportunity for heavy positioning about once a week. If you can seize that, you can likely double your capital within a month.

2. Holding Positions: Most people are afraid to hold positions for a long time, especially profitable ones. The correct approach is to hold profitable positions longer than losing ones. Amateur traders find it difficult to hold onto positions due to poor risk control; they may even check their phones to monitor trades while sleeping. In fact, you should ensure you have a safety cushion in your funds, and if you have over 20% profit, you can try holding overnight positions, which can lead to passive income.

3. Time Frames: Many people are unwilling to trade based on daily charts, let alone weekly charts, believing it is too slow. They prefer to look at 5-minute, 3-minute, or even 1-minute charts. However, I want to emphasize that even if you're day trading, you should still look at weekly and daily charts because the major players are competing on those time frames. I determine the trend on the weekly chart, look for direction on the daily chart, and enter and exit on the 15-minute chart. This way, you can align with large capital movements. After all this, have you learned something?

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