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- Mr A can be an experienced trader while Mr B is an amature trader
- Mr A could be trading with $10k capital while Mr B trades with $100
- Mr A can be emotionally strong when his portfolio is at -70% while Mr B will shiver at -10%
Above all, newbies are always less successful in trading.
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I don't get your point. You just gave an example how newbies sometimes benefit from being scared easily (or fomoing easily). Yet you say that newbies are less successful.
Are you saying that Mr A is better trader, because he is experienced and stayed calm? Or because he trades with more money?
I was just randomly describing different types of traders that we have and not necessarily comparing them. Although I stated it clearly that newbie traders are much more less successful traders because of lack of experience and patience and many no risk management knowledge. The three instances above are not directly conjucted with one another but for random sample examples.
Mr B might panic sell in -10% while Mr a hodls to -70%. Calmness doesn't matter in that case, in the matter of fact it might have been disadvantage, as Mr B panicked before the markets, and still has %90 left to invest, while Mr A lost majority of his investment
Was used to demonstrate the level of emotional ruggedness. That at -70% a trader could be strong and waiting for reversal while at -10% another could be emotionally down and maybe experiencing a sleepless night.