New Trader,Rich Trader 2: Good Trades, Bad Trades pdfdrive com

Part II: Creating a Robust Methodology
Chapter 7 A good trade is based on your trading plan; a bad trade is based on
emotions and beliefs.
Chapter 8. A good trade is based on your own personal edge; a bad trade is based
on your opinion.
Chapter 9 A good trade is made using your own timeframe; a bad trade changes
timeframe due to a loss.
Chapter 10 A good trade is made in reaction to current price reality; a bad trade
is made based on personal judgment.
Chapter 11 A good trade is made after identifying and trading with the trend; a
bad trade fights the trend.
Chapter 12 A good trade is made using the trading vehicles you are an expert in;
a bad trade is when you trade unfamiliar markets.

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Part III: Managing Risk to Stay in the Game
Chapter 13 A good trade risks only 1% of total trading capital; a bad trade does
not have a set amount of risk.
Chapter 14 A good trade risks $1 to make $3; a bad trade risks losing more than
it plans on making in profits.
Chapter 15 A good trade follows a trading plan even during draw downs in
account equity; a bad trade is a big trade made to quickly get even after
a string of losses.
Chapter 16 A good trade has a limited downside but an unlimited upside; a bad
trade has unlimited risk and a limited profit.
Chapter 17 A good trade has an optimum position size for that trade setup; a bad
trade is based on feelings, financial need, or confidence in a trade.

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FOREWORD
I have had the great honor of knowing Steve Burns for several years now and
so was thrilled to hear of the authoring of a sequel to his trading classic, “New
Trader, Rich Trader”. Throughout our friendship, Steve has consistently
demonstrated the uncanny ability to analyze various problems and biases of the
New Trader and articulate such issues in a unique and accessible manner.
As a result, when Steve and Janna asked me to write the Forward to, “New
Trader, Rich Trader 2”, I knew I was in for an entertaining and insightful
journey. Their book did not disappoint. In contrast to its precursor, “New Trader,
Rich Trader”, where New Trader struggled with basic issues such as
development of a positive expectancy method, position sizing as well as
determining which assets to trade; in this manuscript all those issues have been
resolved and so at the book’s inception one might imagine New Trader would
simply be relating his successes to Rich Trader.
As anyone who has successfully transitioned from “New Trader” to “Rich
Trader” can attest, this is not the case and our authors brilliantly navigate New
Trader’s journey from knowing how to trade “in theory” towards flawless
implementation of his positive expectancy model despite draw downs, missed
opportunities, price shock events, and so on. As in all of Steve’s books, I am
consistently amazed at how despite his obvious mastery of our business he can
recall with intimate detail what it was like to make the full gamut of “New
Trader” mistakes.
“New Trader, Rich Trader 2” will have New Traders reaching for their
highlighters while Rich Traders smile knowingly at distance memories of painful
missteps. Wherever you are in the journey from New to Rich Trader, this book is
an indispensable tool filled with lots of “Aha” moments. To Steve and Janna,
congratulations on a job well done, to all the New Traders reading this, pat
yourself on the back for having found an indispensable aid in your journey from
novice to pro.
Richard L. Weissman, Professional Trader and Author, Trade Like a Casino

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“Trading is not the path to free money; profits must be earned through
homework, discipline, courage, patience, and perseverance in the
markets.”
– Rich Trader