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.
Also
10 Reasons Why Trading Is So Challenging
Top Principles for Trading Success