Good traders and Bad Traders

Good traders are able to identify opportunities in the market, plan trades, execute trades, and manage trades at a reasonable level. A good trader identifies the opportunity, plans the trade, and executes the trade. He takes his losses with discipline. One might think that Bad traders are similar to good traders but just better. The reality is that Bad traders are distinctly different from good traders. The difference is not merely a difference in measure but a difference in kind.
Bad trading is actually much closer to gambling. One of the key differences between Bad trading and good trading is that Bad traders don’t just play the odds: Bad traders play the unknown. The market simply isn’t predictable enough – enough of the time — to allow for the type of returns that Bad traders seek. So, Bad traders are..

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