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

CHAPTER 3
A good trade is taken when your entry parameters line up; a bad
trade is taken out of fear of missing a move.
“Essentially, what you fear is not the markets but rather your inability
to do what you need to do, when you need to do it, without
hesitation.”
– Mark Douglas
“So it’s really about the mindset, not your predictions. Like when I…” He
could see it happening. Her eyes stared to glaze, her head tilted, and when he
was done she would say…
“That’s great, honey. It’s so good that you’re making all that money on the
stock market.”
He gave her a dull look. That wasn’t even what he said. But most people
seemed to go off into their own world once he started talking about trading, so it
really wasn’t that surprising.
“Right.”
“Maybe one day you can quit and do it full time!”
“Yeah, that would be nice. I’d get to wear my pajamas to work!” he said with
a laugh, though the look on her face said she wasn’t fond of the idea.
“You’d make so much more money doing that anyways. Why don’t you just
do it?” she said – a discussion they’d had many times.
“Because I still want a steady income to supplement my losses; I’m not
comfortable doing that yet.”
She rolled her eyes. “Buy low, sell high… it can’t be that hard.”
For a moment, he had no reply to her comment.
“Then why don’t you do it?”

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“I don’t have enough money to start an account, and it all looks so
complicated. But you understand all those charts and things, so you should make
money like crazy! Isn’t that what you’re always saying?”
“It is so much more complicated than that! Were you listening at all to what I
was just saying? It takes discipline and… You know what? Let’s just drop this.
There’s no reason to argue and I’m about to run late for my lunch with Rich
Trader.”
“Oh, I see.”
“What?”
“You’re going to see ‘Rich Trader,’ right?”
“Yes.”
She rolled her eyes. “Whatever.”
He gave her an incredulous look before leaving for his usual cafe.
Women.
When he arrived, Rich Trader was laughing at something Jane had said. She
looked up as New Trader entered, smiling at him.
“The usual?”
He nodded, his smile back strained.
She left, his coffee already on the table with two packets of sweetener.
“So, how are you on this beautiful afternoon?” Rich Trader asked, stirring his
tea.
“Fine. Just trying to figure everything out.”
“You mean with your trading mentality?”
New Trader nodded.
“Well, what were your biggest errors last year?”
“Well… I wasn’t patient. I wouldn’t wait for the right entries or I’d start
chasing after some trades. Sometimes it worked out, but not usually.”
Rich Trader laughed. “Good trades are like buses. If you miss one, you just
wait for the next one to arrive. The world is full of buses and just as full of good
setups for trading. As a trade breaks out at your buy signal, the further the move
away from its key level and the more risks there are in chasing it.”
“Yeah, and if you miss the entry you might also miss the bulk of the move,”

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New Trader said, thanking the waitress when she brought his food.
“Even when a trend really runs it will usually give you another shot at entry as
it pulls back to the nearest support on the way to going back up. In the long run,