These five trading stages depict the growth of traders vividly. The profession of trader is a highly professional job. You can find your own shadow in it.
Stage 1: Not knowing it is impossible
This is the first stage when you start trading. Having heard about the success stories of many millionaires, you know that "trading" is a business that can make a lot of money. But once you start, you will know how difficult it is. You start to trade non-stop and take a lot of risks. Sometimes as soon as you enter the market, the market moves in the opposite direction, so you reverse your order again. "Damn! Why is it reversed again?" You reverse your order again... and again... and again... Maybe you did well at the beginning, but this is worse - because it tells your brain: "Trading is too easy", and then you start to "do whatever you want".
When you lose money, you try to double it, just like if you lose one dollar, you bet two dollars next time. Sometimes, you win back by luck, but more often you lose. At this time, you have completely forgotten that you are still a novice in "trading".
This stage usually lasts one to two weeks, but time flies by and you will soon enter the second stage.
Stage 2: Knowing it is impossible
At this stage, you realize that you still have some work to do to get better at trading and making money, “Hmm, I need to do some more work.” You realize that you are still an unqualified trader, “I still lack the skills to really make money.”
So you start setting up various "trading systems" in the charts, reading a bunch of e-books, browsing the web everywhere - you have seen websites from the United States to Ukraine. At this time, you begin to explore your own "nirvana" You become a "system trading enthusiast" - trying from one method to another day and week after week, but you never spend enough time to test whether this system is really feasible. Every time you get a new indicator, you will be ecstatic, "This indicator is completely different!" You become a "master" of "bottom-picking and top-touching", using your indicators to find the exact point of market reversal. Although you find that you are still losing money, you still persist in "searching and searching" because you firmly believe that what you are doing is right. You soon become a skeptic, "Those guys who shout orders are all scammers", they can't make so much money, because you have also "learned", but you can't do it, "Well, they are scammers, they are shills." However, they are there every day and their accounts are growing, while you are still experiencing failure. This stage may last for several years. In fact, in real-life conversations, it is found that this stage will last at least 1 year, and generally close to 3 years. After countless setbacks, it is usually the easiest to give up "trading" at this stage. About 60% of novices quit the game in the first 3 months - they gave up, but it is a good thing - just imagine, if "trading" is an easy thing, we would all become billionaires. The remaining 20% also surrendered after persisting for a year under the natural crash. What may surprise you is that the last 20% of people will persist for 3 years. They will think "I have learned to swim by swimming." However, even after 3 years, only 5-10% of people can really persist, and they start to make money continuously. By the way, these are real data, not made up in my mind. So, even if you really play this game for 3 years, don't really think you can walk on flat ground. One day, at a certain moment, you suddenly enter the third stage.
Stage 3: Epiphany
In the latter part of the second stage, you begin to realize that it is not the "trading system" that causes different results. You realize that a simple moving average can actually make money, as long as your mentality and money management are correct. You start reading some books on trading psychology and match the characters described in the books with yourself. Then, the "epiphany" appears. The "epiphany" seems to connect two nerves in your mind. You suddenly realize that not only you, but everyone else cannot accurately predict how the market will move in the next 10 seconds, let alone the next 20 minutes. You start working according to your own trading style and trading methods. Now you become happy to trade, and the risk is under your control. You have learned the correct money management and use of leverage, and now they have become one with you. When you think back to when someone suggested this to you before, you smile, "I was young then, now I understand." The "epiphany" appears at the moment you truly accept that you cannot predict the market.
Stage 4: Knowing what can be done
You do what your trading system tells you to do. You accept losses just as you accept profits. You will now let your winning orders fly. Accepting "losses" and knowing that your trading system will bring more profits than losses, when a losing order occurs, you simply close the position, "It's just a little pain in my account." Most of the time, you are in a tug-of-war between breaking even, winning today and losing tomorrow, sometimes winning 100 points this week and losing 100 points the next week, usually you are in a break-even state and don't lose a lot of money.
Stage 5: Achieving Perfection
At this point, you have entered the "utopia" of trading. You can control your emotions, and you are a real "trader" - a trader who makes a fortune every day. You have devoted yourself to honing your trading system, which brings you the greatest profits without increasing risk. Your trading method has not changed - it has just become better. Now, you have an ability that girls often talk about: "intuition"! You can now say loudly, "I am a trader!!" However, you are humble and don't think there is any need to tell anyone, "It's just a job."
These are roughly the 5 trading stages. I hope you read it with the heart of a trader, and I hope you can get something from this article. When I first entered the market, I also wanted to "get rich overnight", but now I think: get rich slowly #币林寺扫地僧
