A good trader makes money. It doesn't matter if he lies his ass off and he lies to himself constantly. If he consistency makes money, that is all that matters. But I did pick yes, just because I am truthfull to myself and others.
If a trader's ego often prevents admitting wrong trades, he'll probably go broke one day! Or A trader keeps trading a system with hidden risks that he knows will make him broke due to his own mistakes one day. Or A trader knows he should have quitted a losing trade by now, but he still holds on.
Depends upon the type of trader. A corporate trader who's job it is to maximize his/her arithmetic mean must posess strong denial skills or blessed ignorance; either way the job's goals are a deterant to honesty. A trader that is trying to maximize his/her terminal wealth relative will do better to have a personality that is conducive to self honesty (realistic expectations).
That would be true. But trading probably can produce a quick result much sooner than we thought, imo.