Profitable but still called bad trade.

[Asiska02]

Afaik, there are several approaches to trading, and when someone shares their own opinion, it's best to assume that it actually works for them. From what you shared, there's actually some sense in it. In as much as making profits is always the primary aim of trading, there's also a need to work towards developing a strategy that will remain effective in the long run, rather than looking for a one-time win with a strategy that's unlikely to work again.

I believe trading is a continuous process, so, the whole idea of focusing on a one-time win doesn't really say much. I think at the end of the day, it all boils down to maintaining a consistent strategy that is effective... It doesn't have to be 100% perfect because there's no such thing as perfection in trading.

Looking for the best strategy to work for one as a trader has become something that many traders overlook when trading but it is actually one of the basis of staying profitable in trading. You can’t be in all the trades at all times because you feel or think that if you break some rules of yours you’ll become profitable, it doesn’t work like that.

The good days of trading will come and the bad days will also come which will generally affect your overview of the market, only sticking to your strategy makes you feel the same. Just because you broke your rules and make profit doesn’t make you feel you’ve got a way through to make more profits, it doesn’t work like that. Just like how there are bad days using your trusted strategy, such are there bad days using this other strategy that works for you when you decided to go against your trading strategy.

[stadus]

I have not read the entire story of the post you shared from Reddit. However, you have asked based on the person's point number 6 that despite making a profit in trading, why is it not called a good trade?

It's not a good trade because it was based on wrong analysis, but the trader got lucky and ended up making a profit. However, we should not forget that trading requires consistency if we are aiming for long-term profitability. So if we got lucky this time and made a profit even though it was a bad trade, it doesn't mean we will be lucky again in the future, and we might end up losing instead. I think that's what the story is about.

[Tamaperdana]

Snip

From an objective standpoint read what this trader had to say base on his experience as a trader that has being trading for years just as you. With your own true experiences share your disagreement and agreement with about his idea

[

What this person said is certainly not wrong, because a single profit doesn't guarantee that we are a skilled trader. Clearly, in trading, anything can be a coincidence. Therefore, by continuing to trade and gaining experience, we will discover and know whether we are right or wrong in our trading.

After all, when we have gone through various trading conditions, the conclusions we come to will be much stronger. However, even good experience and procedures are clearly not good if they don't result in profit. Therefore, no matter what happens, we still want to profit when trading.

So, even if we have extensive experience and strategies, if we lose, that's clearly not good trading. Therefore, in trading, all aspects must be truly aligned. Strategy, analysis, capital, risk management, and psychology must be implemented and integrated effectively. Because I've found that if I don't utilize any of these aspects, the risk of loss is clearly enormous. So, you have to use them all, and be careful.

[traderethereum]

Traders will have their standard of trading so they will have different approach which makes them comfortable. They can modify their trading system or ways just to find which one can makes them feels better. I am not saying that those people doing wrong because I don't know how it works but maybe that works for him.

The essence of trading for me is how I can make a profit with less risks. With having controlling of the risks, I am searching for the way but I avoiding chasing the profit if I already got because sometime that can makes me get in the trap of the greed.

No right or best things for trading because traders have their own methods. We can't do the same and needs to find what works to us.

[DPHOR]

As a trader if you have a specific strategy that is working for you and when you tried it out and it happens to fail at the first place doesn't mean you shouldn't try it again over the time, and even though you try's it and doesn't work out doesn't mean that next time it won't work. What I mostly understand is that, consistency is the key, you may deployed a specific strategy and it doesn't work for you today and when you still repeat that same strategy it works fine for you again. Or when someone around you tries it and it works for them perfectly doesn't mean you should entirely leave that strategy. Trading is like something we can't truly or generally understand on how it works because we are not the only one controlling the market. As a trader, you should be able to consider some factors in the market, especially when your equity or capital and trading balance doesn't suit others balance, you could be easily swipe off away from the market because those who has a large balance also control the market. We can see these people as whales or OG's, they usually have a very large trading balance that may easily affects their trading balance unlike those who are trading with just 50-100$. For sure, they can't be comparable because someone who has around $1m trading balance can sustain a long position without getting liquidated so easily than someone who is using around $100k.

[BitcoinPak]

But here there's someone with a total different view on that, even though I almost ask myself what's the essence of trading if it's not to make profit?!  And at what point can we say a trade is a bad trade even after making us some good profit.

From an objective standpoint read what this trader had to say base on his experience as a trader that has being trading for years just as you. With your own true experiences share your disagreement and agreement with about his idea

[

I agree with your point because making a profit does not always mean that we made a profitable trade. I think sometimes traders break their own rules and still make a profit because market moves in their favor, but this process also makes bad habits in the long run. In my opinion, a good trade is who has follow the trading strategy, properly risk management and make decisions based on analysis instead of emotions. Profit is also important because the purpose is making money. We should judge our performance by both our trading process and long-term results rather than the outcome of a single profitable trade. What do you think is more difficult for a trader, following a strategy during a loss or controlling greed after making unexpected profits?

[#CapsLOck]

Sometimes the outcome is not a successful one, so that doesn't mean that it was a bad choice. If someone oversteps their bounds and winds up making a few bucks by chance, they could eventually lose more money later on by doing so again. That doesn't, however, necessarily mean a poor trade, if they stick to their plan and lose money due to an unexpected market change. I would evaluate a trade by the process, by the risk to reward and by the consistency of that trade in the long run, not just by the end result. While profit is important, one winning trade does not necessarily indicate the quality of a trading strategy.

[Makus]

Personally I don't care if my set up is bad and some how end up making profits and then others see it as a bad trade, that's their opinion. To me a bad trade is when I end up not making profit. But one thing that I prioritise over a good trade is risk management. If a place a trade and the risk I take way above strategy and something that breaks my disicpline I might be a little excited if I end up making profit but at the same time I wouldn't call that a good trade because I took a high risk and hoped to get lucky.

it is important to make profit but when your start stepping out of what you have planned and the discipline you have just to make profit  then you on a wrong path.

[uchegod-21]

He is absolutely right. If a trader will not only judge his performance by just one trade, but judge it base on multiple trades he has done, he will know if his trades have been performing well or not. This is when we know those who are real traders and those who are just gambling by engaging in unhealthy strategies that may be profitable just shortly and result in losses subsequently.

The most important thing for any trader to take seriously is effective risks management. Anyone who understands the concept of risks management will understand what op is saying.

[GbitG]

I would agree.....!!!
Profitable tarder always try to follow his blueprint wether he took lose or profit. If you are just shifting gears on every day like on every tarde then probably I will call you a gambler like you are just playing a probilities game. Personally I believe that Risk management is the only factor which unites all profitable traders under a same perspective like it's a common idealogy between then apart from this every individual have their own trading blueprint. Like some use one strategy while others use another one. Some takes one or two trades on day despite some took 5 to 10 trades per day. So it's up to person to person I mean everyone have their own trading plan. But risk management is something which can make you profitable trader provided you to keep following the same rules and methodology on consistent root. Besides that trading Blueprint change over time and even it can also improve with experience.....

I follow my blueprint + soft risk wether Bias goes according to me or against but my entry scheme is switching as according to market structure...... 

[Barikui1]

. While profit is important, one winning trade does not necessarily indicate the quality of a trading strategy.

I agree with this statement of yours, that a single winning trade doesn't necessarily indicate the quality of a trading strategy, but if you can find consistency in your winnings, then it's obvious that you are doing the right thing or your strategy is good.

If you are constantly doing the things you think it's right and you are still losing money consistently, then it's obvious that your trading strategy is not the best, but if you are doing the things you call wrong, but you are winning your trade consistently, and be making money from it, then I don't think it's a bad trade, since your winnings are consistent. It also entails that you are getting something right that you may not even be aware of, so consistently in winning and losing is what really define a good or bad strategy, since the aim is profit making.

[TheUltraElite]

I do consider that being able to trade in a manner where you can explain your profit from your movement is better than making a random trade which seems bogus but ends up making a good profit. The second one should be considered behavior risky and not repeated in future.

If someone is doing this repeatedly they should check their habits and keep the impulsive decisions under control.

Still sometimes luck will play out, in that case accept the win and dont think about it more. One should be able to logically explain their movement that led to the successful trade and if not then consider playing it safe.

[sotelorene]

Afaik, there are several approaches to trading, and when someone shares their own opinion, it's best to assume that it actually works for them. From what you shared, there's actually some sense in it. In as much as making profits is always the primary aim of trading, there's also a need to work towards developing a strategy that will remain effective in the long run, rather than looking for a one-time win with a strategy that's unlikely to work again.

I believe trading is a continuous process, so, the whole idea of focusing on a one-time win doesn't really say much. I think at the end of the day, it all boils down to maintaining a consistent strategy that is effective... It doesn't have to be 100% perfect because there's no such thing as perfection in trading.

Over the time and period of I have  been learning and trading, I have come to realized that you can not follow someone else's strategy and be successful with it, what I am trying to say is that we can be using same strategy but we have different confluence and entry criteria and if you want to copy the others person's own, you will be flowing in losses all the time and for this reason I don't give myself to what opinion someone share or is saying.

However, anyone looking on one time win in trading definitely don't know what he or she is doing and the question will be how much are they planning to win in that one time. Trading is a gradual process and it takes some level of discipline and good strategy in order to be profitable in the long term.

[Emjay24]

which is an interesting and mind shaping for any trader who has never thought

He was right i also read it somewhere in a book or from my mentor i didn't remember clearly right now but i agree with him because if someone follow his plan and taking his decision with discipline and also understand why he is taking a trade even if in that trade he hit his SL he is still better then the person who act like a gambler does not follow his rules and just think about money because the second person and his decisions negatively impact his trading journey in the long run and he/she will easily manipulated by a market.

I kinda get the whole concept, using your own strategy and it is not working and you try another and it works more than once, maybe it's time you develop another strategy based on what is currently working for you. I still think new strategies can be developed and if you find something working, it isn't to be termed bad, you can always build on it, just like the strategy you work with was once the experiment of another person. It might be interesting and more efficient to have more than one strategy.

[knowngunman]

Basically the essence of trading is profit making, so whatever you are doing in the market will not make much sense if you are not making money from it.

Is just like when we're classifying money into good and bad money, there isn't anything like that as money is money so it doesn't matter whether a trade is classified as bad or good but it' all about if the trade is giving you profits or not. Now there are some strategy that aren't sustainable if you want to further your stay in the market and that's when the strategy you're using comes into the discussion but if you're a smart trader then you should have issues switching between strategies to use the best that'll give you profits at that moment. Don't be stuck on using just one strategy but have multiple even though you master one that can give you profits anytime. Having multiple options  is always good in anything that you're doing including trading.

We can't classify any trade that gives us profit as good trade unless we want to deceive ourselves. I agree with the opinion shared by Op, trading should be about process. The process includes your plans, your risk management and of course you should be confident of following it. No plan is perfect, so you're bound to lose some time but the point is you're not just switching your strategies randomly to chase profit.

It doesn't matter even if you make money with a bad trade. It's still bad unless you want to remain inconsistent in trading. The same way you make profit with random strategies is the same way you'll lose money. I'm not saying you can not lose money with your plan but the more you practice your plan, the more it becomes perfect for you and you can learn how to change gradually to another plan that's more perfect instead of constantly beating around multiple strategies.

[LuckyCrypto777]

I believe that profit is the most important factor in trading. Not feelings or any life goals, as in The Wolf of Wall Street. Only the monetary result in numbers. If you're a trader and you trade well, it doesn't matter whether the market is in your favor.
You have money, you're a winner.
And as the saying goes, "winners are never judged." And the theory of probability is such that if you're lucky now, it doesn't mean you won't be lucky in the future. Past experience doesn't count as luck.

[batang_bitcoin]

I believe that profit is the most important factor in trading. Not feelings or any life goals, as in The Wolf of Wall Street. Only the monetary result in numbers. If you're a trader and you trade well, it doesn't matter whether the market is in your favor.
You have money, you're a winner.
And as the saying goes, "winners are never judged." And the theory of probability is such that if you're lucky now, it doesn't mean you won't be lucky in the future. Past experience doesn't count as luck.

I am of the same opinion, a bad trade won't matter as long as you're a profitable trader. That's a bold thing that traders need to reminder that no matter what our feelings are, the goal is to profit. Whatever is the market sentiment is, we need to endure that and be laser-focused for the reason why we do this.

[Slow death]

The main goal of trading is to come away with a profit both financially and psychologically. That is always how I view it. If a day trader closes a trade with a profit but is in a terrible psychological state for instance, constantly thinking about making more trades and unable to focus on real-world activities without the market on their mind then they are facing serious trading related problems. In this case, they shouldn't be thinking about profit in those terms; the longer they keep trading, the more money they might make, but at the cost of their well-being. Ultimately, mental health is far more important than money. Without good mental health, they won't be able to accomplish anything in life. Under these circumstances, I consider the trading to be causing significant harm, and the person should stop for an extended period and seek treatment.

[JaanusRaim]

Agree.

The Martingale strategy is highly profitable 99.99% of the time, but sooner or later a "Black Swan" event arrives and wipes you out completely.
Conversely, you could lose millions of trades in a row if you bet on a real "Black Swan."
Yes, it is great to operate at a loss for years—or even decades—if you know what you are doing.

Let us not be shortsighted!

[Rruchi man]

The main goal of trading is to come away with a profit both financially and psychologically.

The goal is not to be profitable one time, but to be consistently profitable, that is you being able to repeat the process of how you made profit through trading, again and again. The only way to ensure consistent and steady profit from trading is through a system of established principles that you can understand and repeat.

This is why if you take a trade that you do not understand, but still made profit from the trade, it is not a good trade even if you made profit because you did not understand how the profit was made and can likely find it hard to repeat the process.

If you actually understand the trade you've made and understand the reason why you made profit from it such that you can set up yourself in such a position again to make profits, Then you've made a good trade and can be called a good trader.