The Thinking of the Average Trader

Who is an  average trader ?
The majority of people fall into this ‘average trader’ category.  Basically, they seem to think that trading is easy and for whatever reason they buy a stock, the stock’s immediately going to go in their favor.  Heaven forbid they actually are successful, because now that reinforces that behavior going forward and it really sets up for a major disaster.  If you’re an average trader, you have no trading plan or view of trading.  It’s just that simple.  Most people treat this as a hobby and they have no trading plan to speak of.  They have absolutely no money management rules.  If you’re sitting here reading this and you have no money management rules whatsoever, don’t worry.  You’re part of the average trader that is out there.

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