10 Signs You Might still be a New Trader

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I believe there are different stages in a traders development and career. There is the stage of the newbie where you know nothing, the next stage is the new trader where you know something but make nothing, the good trader stage where you make some money, then the rich trader stage where you no longer trade just for money because you have plenty.

How do traders know if they are stuck in the new trader stage? It is dangerous for a new trader to think they are  farther along than they are, they could be risking too much capital per trade, and trading too big which could effect their emotional stability in their trading. It is important that we all know where we really are in our trading journey. Many times new traders should be studying and not trading and there also comes a point where the new trader can do no more studying and should be trading small to learn the realities of the emotions that arise when their real capital is on the line.

10 Signs You Might still be a New Trader

  1. New Traders do not understand what all the fuss is about risk management and trader psychology they do not need all that they are special.

  2. New Traders believe there is some magic trading method that always wins, they search for the Holy Grail of trading.

  3. New Traders do not understand that the very best traders have strings of losses , losing months, and sometimes even losing years. They think rich traders always win.

  4. New Traders want to know what is going up or down, they focus on tips instead of the mechanics of trading.

  5. New Traders hand out advice freely to others, good traders realize that decisions are based on individual methods and do not give out tips.

  6. New Traders are looking for that one big winning trade to go all in on, good traders are trading good systems that they risk 1% per trade on.

  7. New Traders confuse bull markets for skill.

  8. New Traders confuse luck for skill.

  9. New Traders want advice, good traders want robust systems.

  10. New Traders run from method to method and from mentor to mentor after every losing streak, good traders know exactly who they are and what methods they trade.

 

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