1. **Patience and the Psychology of Trading**
- **Veteran**: The veteran trader knows that trading is not a quick game. They have the patience to wait for the best opportunities and know how to manage emotions when the market does not go in their favor. They control fear and greed because they have lived through enough ups and downs.
- **Novice**: The novice, on the other hand, tends to be impulsive. Emotional ups and downs affect them much more, and they tend to make quick decisions without waiting for the right moment, seeking immediate results. This often leads them to make mistakes.
### 2. **Market Knowledge**
- **Veteran**: With years of experience, the veteran has a deep understanding of market behavior. They know how to read patterns, identify trends, and rely on time-tested strategies. Additionally, they know when to pull out and when to enter, based on thorough analysis.
- **Novice**: The novice usually relies on emotion, intuition, or advice from others without deep knowledge. They often fall into traps of fads or temporary patterns that lack solid foundation.
### 3. **Risk Management**
- **Veteran**: They know that risk is inevitable and manage it appropriately. The veteran always has a risk management plan (stop-loss, diversification, appropriate position size) and never risks more than they can afford to lose. Moreover, they understand that losses are part of the process and accept them as learning.
- **Novice**: Novices often overestimate themselves. Sometimes they do not manage risk adequately, risking more than they should without considering potential losses, which can result in significant drops in their accounts.
