"New Trader Rich Trader" by Steve Burns and Holly Burns Book is divided into 3 Parts as Psychology, Risk, Methodology and each part consist to five to eight chapters

As the name suggest this book shows the difference between new traders and rich traders, what the new traders make mistakes in the markets.

In this blog, i am mentioning some important point from each chapter that will help you to understand the motive of the book.

Part 1 (Psychology)


Chapter 1


New Traders are greedy and have unrealistic expectations; Rich Traders are realistic about their returns.

Chapter 2


New Traders make the wrong decisions because of stress; Rich Traders can manage stress.

Chapter 3


New Traders are impatient and look for constant action; Rich Traders are patient and wait for entry and exit signals.

Chapter 4


New Traders trade because they are influenced by their own greed and fear; Rich Traders use a trading plan.  

Chapter 5


New Traders are unsuccessful when they stop learning; Rich Traders never stop learning about the market.


Part 2 (Risk)


Chapter 6 


New Traders act like gamblers; Rich Traders operate like businesspeople.

Chapter 7 


New Traders bet the farm; Rich Traders carefully control trading size. 

Chapter 8 


For New Traders, large profits are the #1 priority; for Rich Traders, managing risk is the #1 priority.

Chapter 9 


New Traders try to prove they are right; Rich Traders admit when they are wrong.

Chapter 10 


New Traders give back profits by not having an exit strategy; Rich Traders lock in profits while they are there


Part 3 (Methodology)


Chapter 11


Most New Traders quit; Rich Traders persevere in the market until they are successful.

Chapter 12 


New Traders hop from system to system the moment they suffer a loss; Rich Traders stick with a winning system even when it’s losing. 

Chapter 13


New Traders place trades based on opinions; Rich Traders place trades based on probabilities. 

Chapter 14 


New Traders try to predict; Rich Traders follow what the market is telling them.

Chapter 15


New Traders trade against the trend; Rich Traders follow the markets trend. 

Chapter 16


New Traders follow their emotions, which put them at a disadvantage; Rich Traders follow systems that give them an advantage

Chapter 17 


New Traders don’t know when to cut losses or lock in gains; Rich Traders have an exit plan. 

Chapter 18


New Traders cut profits short and let losses run; Rich Traders let profits run and cut losses short. 

I hope you all understand the content of this book. I recommend every beginner trader should read this complete book to avoid mistakes or losses.

This book is available on Amazon.