Many people are curious about the real difference between professional traders and retail investors. To be honest, the difference isn't that mysterious; it all boils down to one word—control.

Market movements, with their ups and downs, are very normal. During good months, profits come easily; during downturns, losing streaks of 1-2 months are common. In this regard, there's actually not much difference.

The key difference lies in how losses are handled. A retail friend of mine started with 1000U, and in a good month, made 5000U. But when the market turned bad, he lost it all and even owed money. When the technicals are working, you make money; when they fail, you fail—it's that simple.

Professional traders are different. Starting with the same 1000U, they might earn 2000-3000U in good markets, but they have formulas to protect against bad ones. For example, setting a rule that each trade can lose at most 2% of the principal. Even if they hit 10 consecutive losing trades, the total drawdown is only 20%, leaving the account with 800U. This means they need to earn over 20% next month to break even, but at least they won't lose everything in one go.

How to judge a trader's skill? It's simple—if for over 3 consecutive months, the maximum drawdown doesn't exceed 20%, and the account remains profitable, it indicates they have mastered a stable trading rhythm.

This is the dividing line between retail investors and professionals: it's not about who can make more money, but who can survive longer. Retail investors can't withstand a few losing months, and their capital is gone. Professional traders rely on risk control systems, patiently waiting for the next market wave to continue making gains.

It's often said in the community—"3 years to learn technical skills, 10 years to learn risk management." Purely technical skills only yield short-term gains; facing adverse market conditions can lead to bankruptcy in minutes. True profitability requires a combination of technical skills, capital management, risk control systems, and emotional discipline. Missing any one of these can lead to failure. That's why some people seem to have excellent technical skills but still get wiped out by the market.