When to know you are a good trader

[Rruchi man]

After years in the markets, I’ve come to realize one simple truth: a great trader doesn’t trade with their own capital

There is no one truth on who a great trader is; it is an embodiment of many attributes and skills, and topping this list are risk management skills and emotional/psychological management skills.

You are a good trader if you are able to gain mastery in those.

[TheUltraElite]

Anxiety if present indicates poor outcome in gambling. The manifestation is the incessant checking of market price.

This can be prevented by putting in orders only for long term trades and avoiding short term trading. While markets are shooting up or tumbling down, cunning moves are needed like buying at multiple levels while it is dropping while keeping a capital aside for buying at the absolute bottom.

These things are learnt over years of watching the charts.

[Italian Panic]

The real trading is not a hobby. If you don't keep track of the market, indicators and news you risk losing a lot of money in few time. Trading is primarily a job done by people who know how to pick up on market signals or speculative movements and have the courage to take his money and make it grow based on what they have deduced.
So, you are a good trader if trading becomes your job or if it allows you to live without working. Otherwise, you are simply someone who invests money in a market.

[odunybiz]

For me it's as easy as just profiting. No idea why people are making it complicated. You do not "need" to know technical analysis, or chart reading or anything like that, you do not have to build alerts and do anything that complicated. Sure those make everything easy and you should learn for yourself so that you make more profit.

To me profit alone doesn't make you a good trader. You may make profit sometimes out of luck especially with spot trading as it easy trading spot compare to future trading. And profit with luck on trading only define you as a gambler and not a good trader. A good trader must be able to make profit and should be able to explain to people how he trade and make profit. Must be able to explain he's techniques and pattern for profit in trading on request.

[tvplus006]

For me it's as easy as just profiting. No idea why people are making it complicated. You do not "need" to know technical analysis, or chart reading or anything like that, you do not have to build alerts and do anything that complicated. Sure those make everything easy and you should learn for yourself so that you make more profit.
However, as long as you are profiting when you trade and do that year to year, then you could be trading based on your feelings and it still makes you a good trader. ..

If your trading strategy is based solely on your own feelings, then this is no different from a casino, where the winning number is chosen according to approximately the same principle, and then the only hope is luck. But if you're so lucky and it brings you profit, then obviously there's no need to change anything.

[batang_bitcoin]

The real trading is not a hobby. If you don't keep track of the market, indicators and news you risk losing a lot of money in few time. Trading is primarily a job done by people who know how to pick up on market signals or speculative movements and have the courage to take his money and make it grow based on what they have deduced.

I think it's okay if you consider real trading as a hobby and it make things easier. But the real thing is about as you enjoy it as a hobby, you should also be profitable. Because a profitable trader is able to enjoy what he does if things are easy and he's making money out of it.

So, you are a good trader if trading becomes your job or if it allows you to live without working. Otherwise, you are simply someone who invests money in a market.

Good traders can also have other jobs like a day job and they are still doing their trades during their free time. They're good at time management but I agree, a good trader can make trading as their entire job although it's not required to anyone who's profitable in trading.

[barbara44]

Stop loss is the main element in the risk management strategy. Of course, if you are constantly in front of a trading terminal, you can manually close your order if the price moves in the opposite direction to your expectations. But with a dump, it is not always possible to react to price changes in time, and as a result, your deposit may be liquidated.

I think not really the main but it is only a feature or an option. As said, we can also stop losing in a manual way. Also stop loss is a feature in trading but before we get there, we can already apply a risk management by setting sufficient amount only for trading. Anyways, yeah that stop is not built for greedy traders but rather it is for the responsible traders.

After years in the markets, I’ve come to realize one simple truth: a great trader doesn’t trade with their own capital

Oh! really? But I think you mean because they are so great and that they already accumulated a lot of profits already and then it was now their profits is the one that they are using to trade. But I think this is still considered as a capital . Even the bonus given to us freely by the platform is considered as capital too.

@OP , the answer to your question is pretty simple, and that is obviously, if we are not losing too much anymore .

[sana54210]

Anxiety if present indicates poor outcome in gambling. The manifestation is the incessant checking of market price.

This can be prevented by putting in orders only for long term trades and avoiding short term trading. While markets are shooting up or tumbling down, cunning moves are needed like buying at multiple levels while it is dropping while keeping a capital aside for buying at the absolute bottom.

These things are learnt over years of watching the charts.

They are not gambling though, they are trading. Which means that if you do end up with a better result, then you should not be giving up on what made you do that. Anxiety in trading could manifest in different ways, some just make bad trades because of it, and some are just more careful thanks to it. This is why it makes sense if you end up with something that would be working for you.

If your anxiety is the type that makes you do a better job then you should keep doing it and there is nothing wrong with that. I have seen people who are quite manic about their preparations for trading and it worked out well for them, which means that there is nothing wrong with what they are doing and should be normal for them.

[Franctoshi]

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.

Not using a stop loss isn't meant for a newbie traders, I got some experience with this stop loss of a thing and how the market makers can use it against retail traders, but there are occasions that I don't use stop loss base on my personal strategy but I don't encourage someone that isn't a pro-trader to do same, it very risky, whereas I apply stop loss in most of my trades, for caution purposes and to know what the market is actually doing or its intending direction.

[Rockstarguy]

The real trading is not a hobby. If you don't keep track of the market, indicators and news you risk losing a lot of money in few time. Trading is primarily a job done by people who know how to pick up on market signals or speculative movements and have the courage to take his money and make it grow based on what they have deduced.
So, you are a good trader if trading becomes your job or if it allows you to live without working. Otherwise, you are simply someone who invests money in a market.

I think a trader can be consider as one who really understands what he or she is doing in trading, not just trafing and depending only on luck to have a better outcome in trading.

Many traders are just there relying on luck and speculating the market, their is no strategy, nothing to show for trading. People are so quick to be called traders but they are not ready to gain the knowledge and to go through the process of what a trader is supposed to go through.

[toryn388]

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.

A good trader is usually someone who stays profitable over a long period, not just a few lucky trades. Patience and risk control matter a lot, but I would disagree about not using stop loss. For many traders a stop loss is exactly what protects the account from one bad move turning into a huge loss.

[nara1892]

In my opinion, a good trader is one who can manage their ego and emotions, not force the situation when there is no opportunity to open a position, trade with an amount of 2% of capital, do not try to recover losses quickly, understand that losses are very normal, evaluate mistakes when experiencing losses, always be patient when waiting for the right moment and set a stop loss every time I open a trade. So far I have not been able to have all of the above aspects, the most difficult for me is evaluating every loss I experience so often I get stuck in the same situation.

[Awaklara]

So far I have not been able to have all of the above aspects, the most difficult for me is evaluating every loss I experience so often I get stuck in the same situation.

Evaluating mistakes in trading can be quite difficult. But if you want to get another big picture from a different perspective, you can try asking a friend who is also a trader to check your trading positions. It may not be entirely accurate, but I have done it to see what I actually forgot. Every trader surely understands the risk of inevitable losses. But what we can do is try not to lose more when we fall into the same mistake.