Psychology, RISK and Methodology For Day Trading.

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.

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.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 which 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.

Copyright by Steve Burns With Janna Burns