• Jacob Rudge

Expert Trader VS New Trader Psychology

Welcome to a new blog post. This blog post will be able the new trader and how they approach the Forex market. Please remember I am not a professional trader and I am not giving financial advice. These blog posts are here to guide and give my own opinion on trading the markets. Everyone starts as a new trader of course but the big difference between the new trader and the expert, ultimately comes down to psychology. At the end of this blog I show a video and trading coach that has changed how I trade after watching one video. I hope he can Improve your trading, like he has improved mine.


The new trader is someone who has come into the markets, however that may be and wants to make money. Most new traders think it is easy to trade and make money. They are correct, it is easy to make money but its very hard to make consistent money from the markets. The whole purpose of trading is to make money and the markets are not here to make people rich. They are here to hurt as many people as possible and give money to the people who understand human behaviour and have the patience to trade. It is possible to have a successful trading career as a retail trader and many traders that I personally know have done this. Its not impossible. It takes time and hard work to achieve and will require sacrifice.


The new trader normally has seen how much money you can make trading and thinks that its as easy and buy low and sell high. Many new traders are wanting a quick fix to their money issues but let's say you are here wanting to take a few years to learn the markets the right way. Even though there are many ways to learn how to trade, it is important to follow a few rules. One of those rules is to not follow any traders on social media. All you are going to do is mess up your mind and feel like you are getting nowhere. It takes time to learn how to trade and that is rule number two. It takes time to learn how to trade the markets and become a profitable trader. Make sure you put aside a few hours every day to try and learn something new in the markets.


When you are just starting out you need to be trying and testing as many things as possible. I suggest trying to reach out and find a mentor that you can learn from. This will reduce the amount of time needed to learn how to trade profitable and more importantly, consistently. The mentor that you need to find has been trading for a few years and preferably is a professional trader which means they have been trading for an institution or trade other people's money. Many people say they are a professional trader but what they actually mean is that they are just a profitable retail trader. There is a massive difference and it will be helpful for you to know the difference and not fall into any traps that many new traders fall into. The guy drinking champagne and driving a Ferrari is probably not the guy you want to be learning trading from, even though it might seem like a good idea. Why would they be teaching you if they are making so much money and living this amazing lifestyle? Sorry to say but most people who are showing all the luxury, material items on social media do it because they sell courses. Its a great marketing tool to get more sales to the new traders who think trading is easy. If you know someone that is a new trader then you could learn from them without doing much work. The new trader coming into the markets for the first time is the perfect person to learn from. If you could put a decent amount of money, however much that is for yourself, into a new traders account and just sit back and watch them trade, something magical will happen. You’ll see all the mistakes you make in trading and you’ll be thinking about all the mistakes this trader is making.


Most of the mistakes will be psychological but that is understandable as new traders have not had the thrill and fear stages of trading the markets. Learning from other traders is a great way to learn without making mistakes yourself. The new trader could have fifth winning trades in a row and make a massive percentage gain but that sixth trade will destroy all the profit and send them on a road to losing all the money in the account. After that sixth losing trade, the new trader will risk more to gain those losses back and end up losing again, and again. Take notes from watching this new trader and make sure you do not repeat the mistakes. A way you can do this is to record your screen and audio and then watch it all back. This is a great way to see what you are thinking about in the moment of trading.

One of the best videos about the psychological aspects on trading I have seen will be linked below. It changed the way I thought about trading and took me from losing money to be able to stick with a strategy and understand what I need to focus when I'm trading.

Probabilistic Thinking | Mark Douglas

The way Mark Douglas teaches trading has changed the way I trade. I have read his book and consumed his content, taking notes and re-watching most of the videos he has. The more I watch his content, the more confident I get as a trader and the better results I see in my trading.


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About Me

I'm a 22-year-old Forex trader, founder and creative

living in the UK. I'm a university student studying user

experience design and I have been working with companies all around Europe to help them with branding and creative work. I have been trading the foreign exchange markets for 3 years now and this is a blog combining Forex trading, entrepreneurship and creativity.

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