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Traders Clinic: Top tips for new traders

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In this week's Traders Clinic, Gerald Ashley, an expert in risk, discusses the theory, practice and reality of trading. He begins by asking the question, how many positions should a trader have open at any one time? He warns traders they need to have lots of mental energy to run lots of positions at once. He also discusses the issue of correlation.

Gerald looks at the benefits of paper trading but he warns that this doesn't necessarily lead to successful trading when big bucks are involved. "One human bias is all about money," he explains.

And he has a warning about listening to 'big name investors' during market turmoil. By the time they've said their bit, the market has moved on, he says.