Some of these Trading Success Principles may be difficult for new traders to grasp at first because they appear counterintuitive. These are the best principles for a new trader to follow:
- Traders who are new to the market are prone to being greedy and unrealistic. Good traders avoid these blunders.
- A new investor makes poor decisions as a result of stress and emotions. A wealthy investor manages stress effectively.
- Traders who are just starting out are impatient and want constant action. Rich traders stay in with patience.
- A new trader trades out of greed and fear, whereas a wealthy trader follows a trading strategy.
- Successful traders never stop learning about the stock market; unsuccessful traders stop learning once they start making money.
- A new trader acts like a gambler, whereas a rich trader acts like a businessman.
- Rich traders carefully control the size of their trades, whereas new traders gamble.
- Profit maximisation is the top priority for new traders, while risk management is the top priority for wealthy traders.
- New traders in the market believe they are correct. When wealthy traders make a mistake, they own up to it.
- New traders lose profits due to a lack of an exit strategy. Profits are locked in by a wealthy trader while he is present.
- The new trader gives up and quits, whereas the wealthy trader works hard until they succeed.
- Following a loss, a new trader replaces the trading system with a new system. Even when things appear to be going wrong, a successful trader sticks to a winning strategy.
- New traders base their trades on the opinions of other traders. Trading is a cyclical activity for wealthy traders.
- A new trader makes an attempt to predict trades. The market trends are followed by wealthy traders.
- Traders who are new to the market trade against the stock market; wealthy traders adhere to the market’s rules.
- They have a tendency to trade based on their emotions.
- New traders with systems with an edge make traders wealthy.
- New traders have no idea when to exit when it comes to cutting losses or locking in gains.
- When new traders let losses run, which cut profits short, profits are let run by rich traders, and losses are cut short.
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Top Principles for Trading Success