There are some universal principles that the vast majority of Rich Traders follow.
- Rich Traders manage risk, they do not bet their entire account on one trade, they risk 1% to 2% of their trading capital per trade.
- Rich Traders do not try to prove they are right about a trade they follow the market’s action after entering.
- Rich Traders cut losses short and let winners run.
- They trade the equities and commodities that fit their trading method. Range bound or trending they know what to trade.
- They have a systematic method that works in the long term.
- Their #1 priority is to make money, not to prove they are right.
- They study historical charts to see what has really worked int he past.
- They go with the flow of the market until that flow changes.
- They have learned from the best traders in history through books and mentoring.
- They trade the probabilities not their own emotional feelings.
For the 18 differences between New Traders and Rich Traders check out my book New Trader, Rich Trader.