What separates good traders from bad traders?
A good trader realizes that trading is patience,discipline, and requires atrading approach adapted to their specific psychological profile.
A good trader concentrates on the PROCESS of trading, and not just on the result.
Here’s a list of other things that good traders do:
A good trader knows if they have sufficient risk capital in order to achieve their financial objectives.
A good trader always acts according to their own judgment. They think for themselves rather than be blindly influenced by others.
A good trader never trades on hope. They analyze the market and take calculated risks.
A good trader stays out of the market when in doubt.
A good trader does not chase the market. They wait for signals to appear based on their market analysis and trading strategy.
A good trader does not overtrade.
A good trader does not fight against the trend. While they may trade pullbacks or countertrend swings, they are aware that this price movement is temporary.
A good trader always knows the reward-to-risk ratio of every trade.
A good trader cuts their losses instead of hoping that the trade will turn around.
A good trader allows their profits to run until an exit signal based on their trading strategy is triggered.
A good trader always analyzes their closed trades to find any lessons on how they can improve.
A good trader is patient and knows that there are periods when they don’t need to trade.
A good trader never widens a stop loss.
A good trader never cancels a stop loss.
A good trader treats each trade separately.
A good trader exits the market when in doubt.
A good trader does not blindly follow the advice of others.