Many times, good traders make the right trade but still lose, but it is okay because they will win in the long term because their method is tested, their risk is managed, and their mind set is right for trading. They have skills. Other times a new trader with no skills makes a trade based on a hunch and wins big, the danger is that the new trader will confuse luck with skill. The delusion begins with bigger traders until he is wiped out. We need to all keep a good understanding of whether we traded will the right skill set or we just got lucky.

Traders with skill have large gains after 100 trades and are relatively quiet, traders that were lucky have huge gains after a few trades and are very loud, then very quiet for the next few trades that usually bring their account to zero.

Traders with skill risk 1% of their capital per trade and win in the long term, traders that are just lucky risk the majority of their account for a few big wins in the short term but lose in the long term when their luck runs out.

Traders with skill use a successful method with many stocks in different markets, traders with just luck are only successful with one stock and when its run up ends their winning streak ends.

Traders with skill have winning track records over many years, traders with only luck only have winning track records measured in months.

Traders with skill have risk management as a top priority, traders with only luck do not understand why risk management is important, yet.

Traders with skill are trading like it is a business, traders operating with luck are trading like they are a customer in a casino.

Traders with skill use a trading plan and back tested method, traders with luck make guesses and are sometimes right.

Traders with skill have done their homework, traders with luck think they are naturally smarter than the market.

Traders with skill are disciplined and stick to their system, traders with luck make bets based on opinions.