A qualified trader must have his own trading system. Its entry and exit capital management, all the details are handled by objective trading rules.
Regardless of whether your entry is subjective, objective, or based on other perspectives, such as market sentiment, night astronomy, etc., you must have a trading system to handle risks and returns after entering the market, that is, how to deal with losses after entering the market? If you make a profit, how to better let the profit run.
In other words, whether a trader is qualified or not is not determined by his entry but by his exit, and whether he can handle the risks and benefits of his positions.
I once said that if your entry is a random entry like flipping a coin, but your exit is in line with cutting losses and letting profits run, then in the long run, you can also make a profit and meet the positive return expectations, because it is your exit, not your entry, that determines whether your transaction is profitable. Your entry is just the beginning of trial and error. It’s just that this random entry like flipping a coin is not efficient, because although the entry is just trial and error, we must spend money on the blade and try our best to hit the target.
So how do you judge whether a trader is qualified?
It's very simple. You can randomly find a trend of any product and show it to him to see if he can tell within a few seconds which direction of orders he should hold at the moment, or where he should enter the market next. As soon as he looks at the trend, he will know whether he is currently in a loss period or a profit period of his system. Then he will have his own observation perspective on the market. He knows when to enter the market, when to close a position and wait and see, when to stop loss, and when to let profits run. Every action he takes is handled objectively.
He clearly knows that after each order he places, no matter what kind of market conditions he faces, he can deal with it easily. He knows how to stop loss and how to take profit. He also knows how many hands are needed for each order. In this way, you can decide on entry based on your risk preference, but exit determines your trading logic and whether you have positive profit expectations.
Therefore, a qualified trader must be a systematic trader.
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