What is it meant by a functional trader?

<p id="isPasted">A functional trader is a trader who focuses on consistently generating profits through a well-defined and repeatable trading strategy, rather than relying on intuition or guesswork. They often adopt a systematic approach to the market, employing a set of rules or algorithms to identify trading opportunities and make decisions.</p><p>Here are some key characteristics of a functional trader:</p><ul><li><p>Systematic approach:&nbsp;They rely on a defined set of rules,&nbsp;technical indicators,&nbsp;or algorithms to analyze the market and identify potential trading opportunities.&nbsp;This minimizes subjectivity and reduces the influence of emotions on trading decisions.</p></li><li><p>Risk management:&nbsp;They prioritize risk management,&nbsp;implementing strategies to limit potential losses.&nbsp;This might involve using stop-loss orders,&nbsp;position-sizing rules,&nbsp;and diversification techniques.</p></li><li><p>Discipline:&nbsp;Functional traders stick to their trading plan and avoid emotional decision-making.&nbsp;They don't chase losses or deviate from their strategy based on intuition or gut feeling.</p></li><li><p>Data-driven:&nbsp;Their decisions are based on market data and analysis,&nbsp;not just hunch or guesswork.&nbsp;They utilize technical and fundamental analysis tools to understand market trends and make informed trading choices.</p></li><li><p>Continuous learning:&nbsp;Functional traders continuously learn and adapt their strategies based on market changes and performance evaluation.&nbsp;They stay updated on new developments,&nbsp;adjust their approach as needed,&nbsp;and are open to refining their methods for the best results.</p></li></ul><p>While there are various styles and strategies used by functional traders, they share the common goal of achieving consistent profitability through a disciplined and systematic approach to trading. This contrasts with "discretionary traders" who rely more heavily on intuition and experience, potentially leading to less consistent outcomes.</p>