When to know you are a good trader

[Oshosondy]

This is a very simple truth that you may not know as a trader.
This are not for scalpers but day traders and swing traders.

I have been there before, I do not encourage scalping, this is the trading type that most traders are losing, followed by day trading. But do you actually know that you can lessen how you lose money in day trading and this can later lead to making money from trading.

You people know that I do not encourage stop loss. From my experience, I know that it is used by greedy traders.

What I noticed about good traders, they do not check their position often, this is because they use small amount of money to trade. They are very patient and use little or no leverage. They do not trade highly volatile coins.

If you are the type of trader that check your phone or computer screen often in panic, you are not yet a trader but a gambler. Good trading starts from how to manage risks.

[LastKiss]

~snip~
You people know that I do not encourage stop loss. From my experience, I know that it is used by greedy traders.

What I noticed about good traders, they do not check their position often, this is because they use small amount of money to trade. They are very patient and use little or no leverage. They do not trade highly volatile coins.

If you are the type of trader that check your phone or computer screen often in panic, you are not yet a trader but a gambler. Good trading starts from how to manage risks.

So what I understand is that if we trade without leverage, it might be better not to use a stop loss. However in my opinion, a stop loss is still important whether we trade spot or with leverage. I still remember the incident on 10/10 when my position got liquidated even though I was using low leverage. Since then, whenever I trade, I always prioritize my stop loss first, except when I want to buy for the long term hodl.

I think using a stop loss is one way to manage risk in trading because knowing how to use a stop loss will help improve our trading and it also shows whether our strategy actually works. Whenever our stop loss gets hit, it means our strategy is not working at that moment. It can also indicate how good a trader we are. Personally, I'm not a good trader yet because I'm still learning many things about trading, but I feel satisfied whenever my strategy works and I make a profit from it.

[LogitechMouse]

I have been there before, I do not encourage scalping, this is the trading type that most traders are losing, followed by day trading. But do you actually know that you can lessen how you lose money in day trading and this can later lead to making money from trading.

You don't need to encourage it because I don't encourage it as well.

While there are some professional traders that are making money in trading thru scalping, majority of those who are trying to do it ending up at a loss, and I've experienced it myself. Looking at the 1M, 5M, and 15M charts every single day makes me stressful at first, and while I'm able to adjust already, I don't see scalping working for many traders still. Swing trading is still the best type of trader, but it requires a lot of patience. Less trades, better results.

You people know that I do not encourage stop loss. From my experience, I know that it is used by greedy traders.

I respect your opinion with regards to stop-loss, but I wonder why you don't want to use stop-loss in your trades? I mean what's your Plan B in case your position doesn't go in your favor? You let it get liquidated? Kind of curious so sharing here would help us.

What I noticed about good traders, they do not check their position often, this is because they use small amount of money to trade. They are very patient and use little or no leverage. They do not trade highly volatile coins.

If you are the type of trader that check your phone or computer screen often in panic, you are not yet a trader but a gambler. Good trading starts from how to manage risks.

Analyze the market, enter a position, and let the market do it's thing.

I've only learned this recently when I watch different traders on YouTube. I don't follow their strategy just for context, but one similarity of them is that, they just let the market do it's thing, and they're not the type of trader where they're looking at the charts every single minute. They don't check their position that often, and some even go to the gym. This is the reason why I'm not as stressed as I am many months ago anymore. I just check TradingView every once in a while to see how my position is, and I just trust my analysis.

If you already know how to manage your risks, you will not be constantly looking at the charts.

[Oshosondy]

I respect your opinion with regards to stop-loss, but I wonder why you don't want to use stop-loss in your trades? I mean what's your Plan B in case your position doesn't go in your favor? You let it get liquidated? Kind of curious so sharing here would help us.

If a position does not go as planned, I will leave the trade opened and I will be able to sleep everyday comfortably because I set an amount that the losses will not be too much. If the market is increasing further after 2 days, I may close the position if the analysis says the market might continue to be unfavorable. Patience start from having $5000 burning just $500 to trade, instead of thinking of stop loss.

[Gozie51]

If you are the type of trader that check your phone or computer screen often in panic, you are not yet a trader but a gambler. Good trading starts from how to manage risks.

Yeah trading is to manage risk but you can still check your phone or computer after a while because there are spikes that happen and you see it in a longer hour time which will change the direction of the market which is a reversal candle. In such case, a swing trader can exit before it eats up the profit or takes the losses far down. It is not a wise decision to allow a reversed direction to keep going on loses because of being a swing trader. To check from time to time is not just to sleep over the system.

[Strongkored]

I used to think I was a good trader because I managed to make a profit every day.
However, I gradually realised that the profit earned is not an indicator of a good trader, because when the market turns bearish, the situation can reverse drastically and only losses are incurred.
A good trader is one who can control their emotions, does not get caught up in panic, always sticks to the limits they have set, and is never greedy.

[Oluwa-btc]

Traders recommend and emphasize the importance of planning, that's trading with a written plan.A clear plan allows decisions to be made without emotional baggages, preventing panic By following a structured approach,from the entry point to the risks management, you gain superior control over both your capital and emotions.

[joeperry]

I agree on some of what you've said but I find some people who are great at scalping and great with day trading, etc. I think it depends on the trader's experience and skill. It's also true that trading high volatile coins and using leverage is not good if inexperienced. What I don't agree is not having a stop loss, I mean it's the opposite, most good traders and known traders all have stop loss, target entry point and target profit, if you don't have stop loss that's literally a gambling. So if your position is losing maybe losing 10-20% of your position, you'll just let it go and pray it would go back up?

[Lida93]

If you are the type of trader that check your phone or computer screen often in panic, you are not yet a trader but a gambler. Good trading starts from how to manage risks.

For some reasons I can agree with you about this and it's how every good trader ought to behave because it's the lack of confidence about the position that you have taken that would make you to be checking your trade often and being panicking ontop of that.

I had a boss who gave me a little mentorship in my early days of learning about trading, I can remember him entering a trading position and not going back to look at what's happening with the trading until the day he has projected from his analysis about where price movement would be tilting to. And part of what emboldened his confidence was that he always use the amount he can afford to lose, being a family man with other responsibilities to solve with money, he made sure to trade with his affordable risk cash.

[Eternad]

If you are the type of trader that check your phone or computer screen often in panic, you are not yet a trader but a gambler. Good trading starts from how to manage risks.

I approve this because trading in impulse can be avoided if you check less on your position. You can set all the desired parameters such as take profit and stop loss on your trade to make your trade automated that doesn’t require anymore a manual action.

I’m using trading ever since this was introduced and sometimes copy trading on successful traders that I’m following for a long time.

Only newbie or doesn’t have confidence on their trade usually check frequently their phone. I do this a lot when I’m new to crypto.

[_act_]

What I don't agree is not having a stop loss, I mean it's the opposite, most good traders and known traders all have stop loss,

How are you sure that most good traders all have stop loss? There are some people that just follow the trend to trade. Example is during bull market, the trader may be losing when he go long, but he will keep the trade opened until he make money. Also some traders can see the bear market and use that ti trade some short position.

Also the market can be moving within some prices. I see someone living with me that go long just yesterday and he isaoimg profit right now and he has not closed the trade. He first lost some money yesterday but he started making money since yesterday late night. What if he used stop loss? Maybe the trade would have been closed.

Although stop loss is good but traders need to be wise with it.

[Stepstowealth]

If you are the type of trader that check your phone or computer screen often in panic, you are not yet a trader but a gambler. Good trading starts from how to manage risks.

If you often check the charts, you will be easily affected psychologically. That is why people who think that scalping is very easy often get it wrong. Swing traders who take trades for days and even weeks have more peace because they are less disturbed by all the noise that is on the chart as the time frame reduces. If you are able to take long positions and not be disturbed by them, you have achieved a level in trading that most others have not, you have developed yourself properly as that is what it means and you can be called a good trader.

[GreatArkansas]

(.....)
You people know that I do not encourage stop loss. From my experience, I know that it is used by greedy traders.

So, if you do not put a stop loss, how will you cut losses? Will you rely on your liquidation price? But what if your liquidation is far from your entry and seems impossible to hit in the near term? Well, it really depends; that's why I also understand what you said, you don't encourage stop loss.

I also agree with you about stop lookining or monitoring the price or chart time to time, especially if you are a day trader or not scalpers and if everything is aligned, like entry price, stop loss, and take profit price.

[Hetha.io]

From what I've seen, many beginners think trading is mostly about finding the right indicator or strategy. In reality a lot of mistakes come from how people react to the market.

I used to check the chart all the time and try to catch every small move, and most of the time it just led to emotional decisions. When positions are too big, every small move feels stressful and people start making impulsive decisions. Over time I realized that keeping risk small makes trading a lot easier mentally.

[Ruttoshi]

If you are the type of trader that check your phone or computer screen often in panic, you are not yet a trader but a gambler. Good trading starts from how to manage risks.

When a trader uses more than the amount of money that he can afford to lose, that's what happens because he thinks he's smart amd understands the market. However, I have seen that most traders are often gambling because this is what they do. They keep watching the screen believing that's the best way to prevent losses as if they can change the market direction by just watching the screen.

One attributes of a good trader is that he is not greedy and trades with the amount of money that he can afford to lose. He doesn't trade often.

[Myleschetty]

This is a very simple truth that you may not know as a trader.
This are not for scalpers but day traders and swing traders.

I have been there before, I do not encourage scalping, this is the trading type that most traders are losing, followed by day trading. But do you actually know that you can lessen how you lose money in day trading and this can later lead to making money from trading.

You people know that I do not encourage stop loss. From my experience, I know that it is used by greedy traders.

A stop loss is essential in all trading activities, providing a way for traders to determine their desired risk level for a trade.

What I noticed about good traders, they do not check their position often, this is because they use small amount of money to trade. They are very patient and use little or no leverage. They do not trade highly volatile coins.

If you are the type of trader that check your phone or computer screen often in panic, you are not yet a trader but a gambler. Good trading starts from how to manage risks.

While experienced day traders and swing traders don't need to check their phone/computer cause they always wait for a plus setup and have already managed their risk. But most of the time, they only monitor their trading in order to break even.
Scalpers are traders who constantly monitor their trading performance.

[FirmWars]

It's subjective to define a good trader, I could define it differently from how you did, like in my opinion, a good trader can have a simple time precisions for their trades, they could decide that they want to trade just between the hours of 8am to 10am, I saw it somewhere that a day trader only takes a trade between the hours of 8am -10am, they do that all day and somedays they can encounter loses but during that 2 hours of trade, they are glued to the screen of their phone or system. Some day-traders don't have such time precisions in their trade, they want to take different trades all day until night fall and even at night, they are still checking trades. I don't consider such person a good trader. Using the amount they can afford to lose is one character of a good trader, I agree with you on that, but applying leverage! Some traders are still good and knows how to manage risk effectively even with the leverage they apply, although they don't over leverage to avoid more losses.

[EarnOnVictor]

-snip-
What I noticed about good traders, they do not check their position often, this is because they use small amount of money to trade. They are very patient and use little or no leverage. They do not trade highly volatile coins.

TBH, checking trades often or not, or trading a volatile market or not, doesn't qualify a trader as a good or bad trader. The trader's balanced psychology, their trading results and the overall system put together in achieving that trading result qualify them.

I also deduce that you do not like short-term trading style, which is fine, because every trader has their ways, but still, this is working so well for some traders. Even the long-term trading is a headache for some traders, which is why the time of holding your position doesn't automatically qualify you as a good trader, though it could help with some psychology, like being patient, which still does not automatically make someone a good trader.

[EL MOHA]

Yeah trading is to manage risk but you can still check your phone or computer after a while because there are spikes that happen and you see it in a longer hour time which will change the direction of the market which is a reversal candle. In such case, a swing trader can exit before it eats up the profit or takes the losses far down. It is not a wise decision to allow a reversed direction to keep going on loses because of being a swing trader. To check from time to time is not just to sleep over the system.

I think this where taking profit and setting stop loss actually comes into play, yes OP might be right in his opinion of stop loss been use by greedy traders but it’s very much useful for even traders that are not greedy and this your example is the perfect one for it. Imagine me been in a trade already before the market started some hivh volatile fluctuations but I still see it as a short term trend and still have my belief in my trade then I can simply just set stop loss at a price I can afford to lose and allow the market do its thing. If it goes in my favor then I get rewarded for my patience but if it goes against my prediction then I lose what I can afford to lose

[Finestream]

I used to think I was a good trader because I managed to make a profit every day.
However, I gradually realised that the profit earned is not an indicator of a good trader, because when the market turns bearish, the situation can reverse drastically and only losses are incurred.
A good trader is one who can control their emotions, does not get caught up in panic, always sticks to the limits they have set, and is never greedy.

That was also my mindset as long as trading is concerned. Once you are trading and it resulted into profits, then you are good.

However, the real challenge in trading is not how to make your trading positions turn positive and profitable. But how to stay on track whenever the market is crashing, or whenever the market is not on its best position.

And most importantly, how to manage your emotions despite of the different market threats, and stick to proper risk management to avoid further and unwanted losses.