New Trader Rich Trader is one of the best books I have ever read about trading. I often write about Trading Strategies, Risk Management & Trading Psychology, but today we will discuss the Top 3 lessons you must take from my favourite trading book, ‘New Trader Rich Trader.’
Before going ahead, a little bit of introduction about the author of this book Steve Burns. He started his journey in financial markets in 1993, having rich experience in the stock market; his name has been among the top traders in the US over the years because of his trading performance and experience. Besides trading, Steve Burns is a good author as well. He writes about trading, financial knowledge, and financial freedom.
-This lesson is probably one of the best lessons I have got from this book. Many new traders focus on controlling the market instead of controlling what they can control. You can not control the markets, and you have to accept this fact. As soon as you accept this fact, you will start focusing on what is in your control.
If you focus on things that are in your control, eventually, you will become profitable. But if you try to control markets, no matter what you do, you will eventually fail in the end. So, It is always good to focus on things in our control like position sizing, risk management, following the trading plan, stop-loss placement, etc. Once you initiate the trade, stop loss is the only thing you can control. Your trade results are randomly distributed outcomes, and that is why you can not predict them.
-In the long term, your luck and opinions will not work. Your quantified trading system with an edge will give you the money in the long term if you follow it with discipline.
Often traders trade emotionally, and when they do so, they pay the price. It is always better to trade with a plan because if you are trading without a plan, then you are knowingly or unknowingly gambling. Having a trading plan saves you from taking unnecessary trades, overtrading, and a lot more trading disasters that can blow up your account.
Although it will take time to develop your own trading system that suits your own trading style, that is the only way to make money from the markets. Remember; you may get delayed, but you can’t be denied! So, don’t put pressure on yourself to make money from day one; instead, focus on learning and developing a trading system, which will eventually make you a successful trader.
-One thing that has worked wonderfully for me in trading is maintaining a trading journal. While you trade, different thoughts come to your mind, and that stops you from making the right decisions at the right time.
Writing the trading journal helps you in understanding your thoughts while trading, and when you revise it after your trading hours, you will be able to understand different things like where exactly you made mistakes, what are the things that need to be improved, how you behaved when you were in a trade, etc.
Once you review your trading journal, you will be a more confident trader next time, and that is how maintaining a trading journal will help you in getting that edge in your trading.
So, these are the Top 3 lessons you should take from the book New Trader Rich Trader. If you have not read this book yet, then I strongly recommend you to go through this book once. I think this book is a must for every new trader who has just started his trading journey or is just about to start his career in trading. Click Here to get a copy of this book.
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If you want to know more about Risk Management & Intraday Trading Strategies you can refer to our previous blog on
Importance Of Risk Management In Trading and 10 Best Intraday Trading Strategies.
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