"A good trade is not a profitable trade. Rather, it's a well-executed trade."

This phrase captures one of the most important principles in trading and investing: process over outcome. While profit is the desired result, it's not the best measure of whether a trade was "good." A good trade is defined by the discipline, strategy, and risk management behind it — not whether it happened to make money this time.

Why?

Because even bad trades can sometimes make money — due to luck. And good trades can lose money — due to market noise or unexpected events. Judging quality solely by outcome creates bad habits and reinforces emotional decision-making.

What Makes a Trade "Good"?

1. It follows a tested strategy – You entered the trade based on a clear setup or system, not a hunch.

2. Risk was managed – You set proper stop-losses and managed position size to protect your capital.

3. You accepted uncertainty – You knew the trade might lose and were okay with that.

4. You stayed unemotional – No panic, no greed, no FOMO. You followed your plan.

Conclusion

In the long run, consistently executing good trades — regardless of short-term outcomes — leads to profitability. The market rewards discipline, not luck. So, a good trade is one where you did the right things, even if the result wasn’t a win.