Thread by @SJosephBurns

10 lessons from my book “New Trader, Rich Trader.”

A thread 🧵 👇

“You need to focus on a sound strategy, system, and trading plan and not profits. Good trading will create your profits, but focusing on your profits will usually lead to bad trading.”

“Before you place the trade, you need to have an exit strategy of how, when, and why you will take profits and what your stop loss will be. You have to plan to sell your stock at a specific percentage loss, price support breach, or trend change.”

“If you experience high levels of stress during trading, either your position size is too large or you don’t have enough confidence in your system. To reduce stress, lower your positions or do more testing on your system.”

“New Traders are impatient and look for constant action; Rich Traders are patient and wait for entry and exit signals.”

“I would suggest that you trade only to make money, not for entertainment or to prove something to yourself. Profitable trading is often boring. If you already know what you’re going to do before you trade, it takes a lot of the excitement out of it.”

If you have a trading plan & a system, there are no spontaneous trades. You’ll spend your time waiting for entry signals & exit signals. You’ll learn that your system makes you money in the long-term, but your ego loses you money in the short term. Trade your system, not opinions

“Your first job as a trader is to focus on the correct trading process, not profits.”

“Good trades are generally ones which show a profit from the beginning.”

“Don’t trade based on your opinions or feelings, only trade your system.”

“Trade only in the direction of the market trend. Let your system make all the decisions, not opinions & feelings. Buy only at the sweet spot on a chart. Become an expert in 1 method & the stocks on your watchlist. Trade where the volume is, not in illiquid stocks or markets.”