The Difference in Judgements of Amateurs and Professionals

9 ก.ย. 2020

Trades shouldn't be judged based on the results. For example, if a trade gave profit it is a good trade and if a trade gave a loss it is a bad trade. It is an amateur's approach.

Trades must be judged based on other criteria:
- good/bad entry
- good/bad exit
- was it in the line of a trading strategy?
- was it in the line of a trading plan?
- was it in the line of proper money management?

The same goes for the judgment of traders. If a trader isn't profitable right now or for some period of time, but he or she trades properly, it is a good trader.

If a trader made tons of money without following his or her trading plan and proper money management, it is a good example of a bad trader.

The same goes for trading robots, trading strategies, and other tools.

Don't follow an amateur's approach in deciding what is good or what is bad in trading. You should be smarter and look at the whole picture before any conclusions! For such an approach, you must have the right knowledge and experience!