What distinguishes excellent traders from terrible dealers?
A smart trader understands that trading takes patience and discipline, as well as a trading strategy tailored to their unique psychological profile.
A skilled trader focuses on the PROCESS of trading rather than the OUTCOME.
Other things that good traders do include:
What Good Traders Do
A good trader understands whether they have enough risk capital to meet their financial goals.
A good trader always acts on their own discretion. They think for themselves rather than allowing others to affect them.
A good trader never trades on the basis of hope. They conduct market research and take cautious risks.
When in doubt, a good trader stays out of the market.
A good trader does not try to time the market. They wait for signs based on their market analysis and trading technique to appear.
A good trader never overtrades.
A good trader does not oppose the trend. They may trade pullbacks or countertrend movements, but they understand that the price movement is just transitory.
A good trader is always aware of the reward-to-risk ratio of each trade.
Instead of hoping that the deal will turn around, a good trader cuts their losses.
A good trader lets their winnings run until an exit signal triggered by their trading method.
A good trader always evaluates their closed transactions to learn from them and better.
A good trader is patient and understands that there will be times when they do not need to trade
A good trader will never increase the size of a stop loss.
A good trader will never cancel a stop loss order.
A good trader approaches each trade individually.
When in doubt, a good trader departs the market.
A good trader does not mindlessly follow other people’s advise.