Trader Dale Volume Profile

Trading psychology
Good winning trade
Good winning trade means that you made your analysis properly and you also executed the trade
flawlessly according to your trading plan. Then the trade went according to your plan and ended
up as a winner. This is the kind of trade everybody likes.
Bad winning trade
Bad winning trades are in my opinion the worst ones. Such trade is
usually made without analysis or with a poor analysis. These trades are
also made based on a “feeling“ or on a decision made on the spur of the
moment. Bad are also trades that you executed badly – trades where
you didn’t stick to your plan.
The worst thing about such trades is that they encourage you. When
you take a trade based just on your gut feeling and it is a winner, then
you are encouraged to take more such trades. It worked this time, so it
will work in the future too, right? No, it won't! What is most likely to
happen is that you will be trading based on your gut feeling more and
more and you will start losing money. You will also probably start
trading with bigger positions (because your gut feeling must be right
A badly planned or
poorly executed
trade is a bad trade,
no matter if it ends
as a winner or as a
loser.
this time!)...You know how this sad story ends, right? It ends with a margin call.
Remember – a badly planned or poorly executed trade is a bad trade, no matter if it ends as a
winner or as a loser.
A bad trade is also every trade you don't trade 100 % according to your rules. If you, for example,
bend the rules a bit in one trade and it ends up a winner, then you will feel encouraged to bend
some other rule next time. In some time you will be bending most of your rules and you will
wonder why the strategy no longer works. Obviously, the reason is that you bent so many rules
that it became a new strategy (which you haven't backtested and you haven't hard rules for).
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