What Separates New Traders & Rich Traders w/ Steve Burns

Steve is here today to discuss some of the traits that separate the amateurs from the pros. With tight risk management being a key factor, he also shares some of his own rules that could potentially save you a lot of money. And it’s worth noting, these rules have prevented Steve from returning to the severe drawdowns he experienced first-hand when starting out.

But really that’s just the tip of the iceberg. We also go into the methods that Steve uses to actively trade in today’s market, and he how he found a system that works for him. So hit ‘play’ and enjoy some quality trading tips for the next 35 minutes.

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Lessons Learnt in this Interview:
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- How Steve overcame a 50% drawdown, and why he never gave up.

- Learning a trading system from a dancer turned multi millionaire trader in the 60’s.

- By the numbers – what it takes to get back to breakeven after a severe drawdown.

- The importance of learning to crawl before you walk. Why Steve believes you should study for an entire year before risking real money.

- How to conquer your emotions on the trading rollercoaster.

- And much, much more…

[TradersArcade]

Great episode ! I really appreciated Steve Burns book too. Here is my time stamp for the questionnaire:
(2:00) Intro
(2:19) Ho did you get into stock market?
(4:16) How was your success in the beginning?
(5:18) What did you struggle with early on?
(6:06) How did you end up controlling your position sizing?
(7:22) How did you get back into trading after losing half of your account?
(8:36) How do you define your trading style
(9:19) What do you like about your style of trading?
(10:39) Explain how your approach is influenced by Nicolas Darvas
(12:25) How did you discover that?
(13:35) Your trading is based on technicals, do you use any fundamentals?
(14:33) What does a good setup looks like to you? (What do you look for to go into a trade)
(15:32) Once you're in, how do you manage that trade?
(17:30) What are some risk management rules to save a trader from blowing up their account.
(19:43) For those with low capital, how to trade with 1% of their account?
(21:03) What is a good starting capital for traders
(21:44) Is it a good idea to start with an 8 grand account and start trading?
(24:10) Getting educated - How do think new traders can get educated?
(25:34) How do you filter the noise from all the information/education?
(26:38) How to piece together all the bits of information ?
(27:33) What would you say to traders who are losing day by day?
(28:33) What do you believe is the difference between traders that make it and traders that don't?
(30:41) What advice do you have for traders who struggle with the emotional side of trading?
(31:53) What is the best piece of advice you ever received?
(32:10) What is the #1 trading resource you cannot live without?
(32:22) Name a book you believe to be a must read for any traders just starting out
(32:56) Knowing everything you know now, hat would you have done differently come day 1?
For more cool stuff visit www.tradersarcade.com :)

[OneCreator]

Practical points from 005:

- Focus on risk management or blow up.
- Steve uses 1% max risk per trade + profit trailing + well funded account.
- Don't focus on prediction (it's impossible), trade present information (recomends reactive technical analysis).
- RSI and Moving Averages can be used for exits/targets.
- First you learn how to trade, and only AFTER you start trading real money (newbies do the oposite).
- Know what are the right questions to ask.
- Find whatever plan fits your needs and personality.
- Real money came from longer holding periods.
- Profitability is possible with 100% Technical Analysis (ignoring fundamentals).
- Don't fight the market, trade WITH it (trend following concept).

[GoodVibesOnly]

dont stop what you're doing man, I appreciate your content

[KenalLouis]

This was wonderful! Really helpful. I love how he mention educating oneself first before trading. Also technical analysis of current price movement is more valuable than fundamental analysis. Great podcast!

[JBellfx]

Been trading since 2008 and have only just come across this channel - keep it up Aaron

[blue-xqfn]

the best Chanel ever there's no words to describe how much information and lessons you can get from here

[carlosangel]

Another great interview. Steve Burns is now one of my favorite traders because of the wise advises and words of wisdom that he is sharing in this interview. His books are now on my must read first list, but I just hope they are not to academically heavy for a beginner like myself. Thanks again Aaron! :)

[trill]

Recently got into investing, this channel is a Gem I can feel it in my blood. Watching everyone of these videos from episode one and taking notes. Better than any TV show YT videos Movies or music for me personally..thank you

[bullseyejoe]

I have listened to about 50 of your interviews. This one stood out as Excellent for new traders !!!

[solargod]

Priceless interview . I would have paid to listen.

[danielizumihara]

Fantastic! There's that beautiful feeling even though you may not be where you want to be as a trader - that feeling that you're not blndly following others anymore. You're asking your own questions, doing the work to answer them, and beginning to carve your own path to your goals. Perseverance is the key to getting to that insight and most people never reach their goals simply because they just didn't give themselves enough time to succeed.

[snakedragon]

Dude I love the channel, there are many good stuff in each broad cast to learn, keep it up! I believe there will be huge success for this.

[jayfowler]

I have listen to everyone of your interview. I just want to (thank you) soooo much for what you are doing.

[andrewereynolds]

Dr. Alexander Elder book recommendation. Awesome Steve Burns.

[novou]

There are a lot of good knowledge in this interview. Thank you so much. You make me more confident with my own strategy :)

[zinetx]

Great info. Thank you both Aaron and Steve.

[erichammond]

Trade the current price action - adhere to your risk management system and shut off market news - CNBC for example. Steve's methods work. Read Market Wizards and books by William J O'Neil as well. Trading profitably as well as consistently can be done.

[hamisintunzwenimana]

Good
Technical
1. Fundamentals vs. Technicals
2. Position Sizing / Process

[jaylos]

honesty in this wonderful slIde of interviews are a Must and a first value to the show. if only further intimate knowledge Could be exploited would be a great help and if the guests could be a bit more challenged to do so..

love the show. decently reCommended

[andrewereynolds]

Lots of good knowledge in that interview Aaron.