What Makes a Good Trader?

What separates good traders from bad traders?

A good trader realizes that trading is patience, discipline, and requires a trading 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:

What 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.

Reprinted from Babypips, the copyright all reserved by the original author.