Subjective: Based on or influenced by personal feelings, tastes, or opinions. Proceeding from or taking place in a person’s mind rather than the external world.

Subjective traders are intertwined emotionally with their trades. Their signals are generally entering out of greed and exiting based on their own fear. They believe in their opinions more than the actual price action. They base entries and exits on whether they are feeling good or bad about a trade. A subjective trade comes out of the imagination of the trader, from their own beliefs, opinions, and what “should” happen in their view. Many times reality is not even cross checked as a reference, and the subjective traders can end up seeing what they want to see instead of what is really going on. Their compass is their emotions, opinions, and ego and they can have internal goals other than making money. They value being right and predicting the future over everything else. They love making a good call or being right and making money may not even be the main goal in their trading.

Objective: A person or their judgment is not influenced by personal feelings or opinions in considering and representing facts. Having actual existence or reality.

Objective traders have a quantified method, a system, a plan, rules, and principles they trade by. They know where they will get an entry signal based on facts, and where they will get out based on price action. Objective traders have a written trading plan to guide them. The guides of the objective trader is historical price action, chart patterns, probabilities, risk management, and their edge. They react to what is happening in reality in quantifiable terms that can be measured. They go with the flow of price action not the flow of internal emotions.


Be objective in your trading, do not let the subjectivity of your emotions and ego interfere with the reality of price action. Don’t be attached to  your trade emotionally and don’t attach your ego to it. Be the trader that witnesses the trade from an emotional distance with curiosity. If you can find that space within that is between you and your trading results your trading will become very different and probably more profitable. There should be valid reasons for entering a trade based on signals that can be shown to have an edge and money management that gives the opportunity for big wins and small losses. When you can approach the results of your trades with equanimity whether they are wins or losses then my friend you are at the next level.