Difference Between Professionals and Amateurs

[prax 10]

indeed, when talking with the pro, the most discuss thing are the worst case come at first, the DrawDown! I fully aware, and avoid any DD above 20-30%. most noobs just forget a 50% account loss means we already broke, they didn't realize it required 100% profit to get back balance into initial deposit. while I learn this simple fact hard way.

while most ameteurs end up become delusional traders who dreamed to turn 100$ into 10000$ without taking any risk. never take this field seriously nor made serious attempt on any aspect. for example not focusing in learning process but rather to gamble with 100$!!

[Ammeo 10]

Professionals have been in trading business for years and are fully established. Amateurs on the other hand aren't.

[wmck6167 10]

indeed, when talking with the pro, the most discuss thing are the worst case come at first, the DrawDown! I fully aware, and avoid any DD above 20-30%. most noobs just forget a 50% account loss means we already broke, they didn't realize it required 100% profit to get back balance into initial deposit. while I learn this simple fact hard way.

while most ameteurs end up become delusional traders who dreamed to turn 100$ into 10000$ without taking any risk. never take this field seriously nor made serious attempt on any aspect. for example not focusing in learning process but rather to gamble with 100$!!

 

it's very valuable for you to point out the risk first. I am just a learner. First, what's the drawdown? What caused it? How is it balanced based on price before it reached the edge? Then who did it.....(I really dislike it, but can we have a wining opportunity without drawdown process?how is the capital to be balanced based on this process?)

You are right, if you lost 30%, you need to make 42.8% to back to original price position. But my question, what if you sold at 30%, stock start to come back from this point?(other suffers will be glad that you donate the money) I do not have a heart to buy back immediately after a big lost.... But I feel very lucky if the drawdown keep go down to 40%. If I knew I am going to have 30% drawdown, I defintely will stop the lost at 7.5%. Could I predict the drawdown amount? Maybe.

Just for fun and pray for those lost money caused not by greedy.