Step 1: "Innocent innocence"


This is the first step when you enter trading. You know trading is a good way to make money because you've heard a lot about it and about millionaires ... Unfortunately, just like when you started practicing driving, you think it's easy - after all You also realize how difficult it is… The market goes up and down… what is the secret in it - discover it!

Unfortunately, just like the first time you sit in front of the wheel, you quickly learn that you don't have any skill at all to do this. You trade too much and risk too much. When you open a position and it goes backward you jump out and open another position in reverse, and it goes against your position again ... and so on, over and over again ...

You might have some initial success, which is actually pretty bad because it tells your subconscious that "oh, it's easy to win" and you start taking more risks.

You want to get back what was lost and start "double" each time you trade. Sometimes you win, but usually, you get bruised and hurt, and you lose badly. You forget that you don't have any trading skills.

This phase usually lasts a few weeks, and the market usually changes quickly and you get caught up in phase 2.

Step 2: Be aware of your "disability" in trading


At this stage you realize that in order to trade there are many things to do, to learn and you need to learn a few things ... You know that you actually do not have trading skills, not enough to understand. know to make a profit.

During this stage you are a system tester, every day every week you change from method to method and never stick around long enough to see if they really work or not. Every time you reach a certain indicator you will fool yourself that it will make a difference.

You test automated systems on MetaTrader 4, you use moving averages, Fibonacci lines, support, resistance, pivot points, divergences, DMI, ADX, and hundreds of other things in the hope that the system is "miraculous. Your results will be effective immediately today. You hit the top, bottom, try to find the exact reversal points with your indicators and you realize that you continue to lose or even lose more just because you firmly believe that your system is right.

You go into chat rooms and watch other traders make money, and you want to know why you didn't - you ask a bunch of questions, some of which are silly that when you look back it's funny. You come to the idea that all the winners are just liars, they can't win because you did all the way you couldn't, then why did they? You know as much as they do and they must be liars. But they stay there day by day, their account increases while yours is the opposite.

You are like a boy, traders make money giving advice but you remain stubborn and think you already know. You ignore the advice and go on overtrade even if someone says you're crazy, you think you know.

You think and buy the signals of some people, but that doesn't help you anymore.

You may even approach a "Guru" like Rob Booker or someone who seems promising in helping you become a profitable trader (usually for a certain fee, of course). Even if the teacher is good, you cannot win because nothing can replace the experience that you think you already know.

This phase can last a very, very long time - to my knowledge when talking to other traders as well as from personal experience this usually lasts from 1 year to almost 3 years. This is also the period when you are most likely to want to give up because of discouragement.

About 60% of new traders fall apart in the first 3 months - they give up and this is great for them - think about it - if trading was that easy then we're all millionaires!

About 20% chase within 1 year and then blow away the account, of course, it is.

What will surprise you is that the remaining 20% ​​go on for about 3 years - and they think they survived - but even after 3 years only 5-10% can do it. Stable journey and really make money.

Finally, you are finished with this phase. You will probably commit to spending more time, effort, and money than you ever thought possible, burning a few accounts, giving up three or four times, but now it's in your blood.

One day, for a certain moment, you enter the third stage ...

Step 3: The Eureka moment



By the end of the second stage (stage 2) you realize that the difference is not made by systems. You realize that you can make money with just one moving average, nothing else if you have the right way of thinking and managing capital. You start reading books about psychology in trading, identify with the characters portrayed in these books and you finally arrive at the "Eureka" moment.

This "Eureka" moment creates a connection with what is already in you. You suddenly realize that you, anyone can not predict exactly how the market will move in the next ten seconds or 20 seconds, so don't worry about what it will be in the next 20 minutes. Because of this finding, you no longer care what other people think - how this news will affect, how the event will affect the market. You become an individual with your own method.

You start focusing on just one system and honing it your way, you begin to feel good and you define your risk threshold.

You start making trades when your system shows a high win rate. When the position goes backward you don't get angry because you are aware that you cannot predict, and you quickly close the order when the market goes in the opposite direction. The next or the next trade or the next trade is more likely to win because you know your system works effectively.

You stop looking at each trade's outlook and start looking at the weekly numbers, you know that a bad trade doesn't mean your system is bad. For a moment you realize that the trading game involves only one thing: stick to the system and the discipline set in every trade no matter what happens because you know that you win in the end...

You learn about capital management and leverage, like how much risk is on your account, etc ... and now you are really absorbed in it, and you smile back at the people who advised you. this one year ago. You were not ready then, but now you are. The "Eureka" moment comes when you truly accept that you cannot predict the market.

Step 4: Consciously perfect your abilities


You trade when your system gives signals. You accept each trade equally easily, no matter how win or lose. You take the risk of giving your winning trades a chance to go all the way because you know that your system makes more money than you lose, and you quickly close when it's a lose trade. It doesn't do great harm to your account. You are now at a time when most of your trades are even, day in profit, there are weeks where you make a hundred pips and a week where you lose hundreds of pips - generally you break even and not lose money. You are now aware that you are on your way and that you gain the respect of the other traders when discussing with them every day. You still have to work and think about your trades, and as this continues you start to make more and more lost money, steadily.

You start your day winning 20 pips, losing 35 pips but you don't think you have returned what you earned to the market because you know that you will get it back. Now you make steady money week after week, week 25 pips, week 50 pips ... and so on.
It lasted about 6 months.

Step 5 - Unconscious energy


Like you're cooking - or like driving a car, every day you sit in a trade - now you do things unconsciously. You are in autopilot mode. You start making bigger trades and winning 200 pips a day doesn't get you more excited than 1 pip.

You see forum newbies scream "go dollar go" as if they are urging a horse to race in a major national tournament, and you see your own image - but from years ago.

It's a trading utopia - you've really mastered your emotions, and now you are a trader with very fast account growth.

You are the star in the chatroom and people listen to what you say. You recognize your image about 2 years ago in their questions. You advise them, but you know that most of that advice will be blown away because they are immature kids - some of them will reach where you are - some go fast. and others slower - a lot, a lot of people, never going out of the second stage, except for a handful of people.

Trading right now has nothing to do with - to be honest, it's a bit tedious and different - just like everything else in your life when you have mastered it, or it's just working to be done - then it becomes dull. Just work, that's all.

Finally, you leave chat rooms and choose a few people to talk about the market together, but you are not affected by them anymore.

All the time now you focus on honing your method to get the most out of the market without increasing your risk. Your trading method hasn't changed - it's just more complete - you now have what women call "spirituality".