Good Trader Vs Bad Trader? How can we manage the mind, ego, and emotions in order to make good trades.
- We can get a good trade with full confidence and adheres to your trading strategy. Personal opinion lead to a bad trade.
- A good trade is one in which the entry and position sizes are both disciplined. A bad trade is made in order to recover losses.
- You know you’ve made a good trade when your entry parameters are in sync. Fear of missing a move leads to a bad trade.
- In the context of your trading plan, Good trade’s goal is to take profits. Greed is responsible for a bad trade.
- Your trading strategy make your trade good. Ego lead to a bad trade.
- Trading without guilt or internal confusion result in good trade. Trader makes a bad decision when he/she is confuse.
“Good trades are just one part of a larger trade that provides traders with a long-term advantage.”
- Your trading plan is the foundation of a successful trade. Emotions and beliefs drive a bad trade.
- Your edge is the foundation of a good trade. Your opinion makes a bad trad.
- Using your time frame, make a good trade. Due to a loss, a bad trade shifts timeframe.
- The main focus of a good trade is current market conditions. Personal judgment results in a poor trade.
- Identifying and trading with the trend is the key to a successful trade. A bad trade goes against the flow of the market.
- We can achieve a good trade with the help of trading strategies in which you are proficient. When you trade unfamiliar markets, you make a bad trade.
To keep the trader in the game, good trades must always manage risk.
- A successful trade only exposes 1% of total trading capital to risk. There is no fixed amount of risk in a bad trade.
- A good trade risks losing $1 to make $3, whereas a bad trade risks losing more money than it intends to profit from.
- A good trade will stick to a trading plan. A bad trade is a large trade to quickly recover previous losses.
- The downside of a good trade is limited, but the upside is unlimited. A bad trade has an unlimited risk and a finite profit potential.
- A good trade has a position size that is optimal for the trade setup. Emotions, financial necessity, or a lack of confidence result in a bad trade.
Thank you for taking the time to read Good Trader vs Bad Trader.
Also read10 Steps To Be A Novice to Pro Trader