Review New Trader Rich Trader
by STEVE BURNS, HOLLY BURNS
Steve Burns creates a comparison of the behavior and trading decisions of a new trader and a rich trader in his book. He creates a narrative of sorts that allows the reader to follow through the trading career of a new trader as he/she finds the way around the trading industry.
He also notes how new traders are unprepared for real trading that involves their personal money and helps them get from that to a rich trader. An example of Steve’s discussion is about how a new trader has unrealistic expectations of trading while a rich trader knows about the potential losses and gains of the industry.
This book is a great guide to anyone that is only at the beginning stages of their trading career and want to learn early about the different ups and downs of the industry. This book takes the reader in the right direction and tells them how to be realistic about the outcome of trades, whether it results in gains or losses.
This book talks about the psychology of a new trader and the trading principles that they must follow in order to get from being an amateur to being a professional and successful trader. This book is highly recommended to any beginning trader who wants to learn about the trading industry without all the fuss.
About the Author
STEVE BURNS began his career in investment in 1993 and traded his personal accounts in 1995. He is a teacher and author of financial books that found the investment to be fulfilling. He has a knack in analyzing complex data and condensing it into easily understandable material.
HOLLY BURNS is co-author of twelve best-selling books, alongside Steve, who she also helped to realize his trading knowledge. She has also assisted in the launch of four eCourses that allowed both Steve and Holly to create a wide community in social media.
Table of Contents
PART 1: PSYCHOLOGY
1. New Traders are greedy and have unrealistic expectations; Rich Traders are realistic about their returns.
2. New Traders make the wrong decisions because of stress; Rich Traders are able to manage stress.
3. New Traders are impatient and look for constant action; Rich Traders are patient.
4. New Traders trade because they are influenced by their own greed and fear; Good Traders use a trading plan.
5. New Traders are unsuccessful when they stop learning; Rich Traders never stop learning about the market.
PART 2: RISK
6. New Traders act like gamblers; Rich Traders operate like businesspeople.
7. New Traders bet the farm; Rich Traders carefully control trading size.
8. For New Traders huge profits are the #1 priority; for Rich Traders managing risk is the #1 priority.
9. New Traders try to prove they are right; Rich Traders admit when they are wrong.
10. New Traders give back profits by not having an exit strategy; Rich Traders lock in profits while they are there.
PART 3: METHODOLOGY
11. New Traders quit; Rich Traders persevere in the market until they are successful.
12. New Traders hop from system to system the moment they suffer a loss; Rich Traders stick with a winning system even when it’s losing.
13. New Traders place trades based on opinions; Rich Traders place trades based on probabilities.
14. New Traders try to predict; Rich Traders follow what the market is telling them.
15. New Traders trade against the trend; Rich Traders follow the market trend.
16. New Traders follow their emotions, putting them at a disadvantage; Rich Traders follow systems that give them an advantage.
17. New Traders do not know when to cut losses or lock in gains; Rich Traders have an exit plan.
18. New Traders cut profits short and let losses run; Rich Traders let profits run and cut losses short.
APPENDIX A: RESOURCES
APPENDIX B: AUTHOR TRADING / INVESTING RESULTS 2003-2010
ABOUT THE AUTHOR