There are some universal principles that the vast majority of Rich Traders follow.

  1. Rich Traders manage risk, they do not bet their entire account on one trade, they risk 1% to 2% of their trading capital per trade.
  2. Rich Traders do not try to prove they are right about a trade they follow the market’s action after entering.
  3. Rich Traders cut losses short and let winners run.
  4. They trade the equities and commodities that fit their trading method. Range bound or trending they know what to trade.
  5. They have a systematic method that works in the long term.
  6. Their #1 priority is to make money, not to prove they are right.
  7. They study historical charts to see what has really worked int he past.
  8. They go with the flow of the market until that flow changes.
  9. They have learned from the best traders in history through books and mentoring.
  10. They trade the probabilities not their own emotional feelings.

For the 18 differences between New Traders and Rich Traders check out my book New Trader, Rich Trader.