1. Not knowing that trading is a professional and difficult thing.
This is the first stage when you start to engage in trading. You come in because you hear others say that you can make a lot of money by speculating in cryptocurrencies/stocks. I think everyone enters the crypto circle because of this, and they all come in because of other people's examples of getting rich. Maybe when you first enter this market, it is a bull market, or you are lucky for a while, and you find that it is easy to make money by trading. You find that you can make a lot of money by going in and out every day. Once the bear market comes, or you start to have bad luck, you have losses, and then you start to try to double and leverage. Sometimes you win back, but more often, you find that you lose more, or others tell you to hold on, value investment, and hoard coins, and finally find that only one tenth of the principal is left.
2. Start to realize that making money from trading requires professional knowledge and cannot be done recklessly
Since you lost a lot of money before, you start to reflect and realize that trading is a professional matter and you can’t do it so recklessly.
Then
①. You start looking for a bunch of professional books to read, or search the Internet for things you think are useful.
②. You start to learn various indicators and techniques, such as waves, entanglement theory, etc.
③. You start looking for various so-called gods on tradingview, Weibo, Penguin groups, and WeChat groups, worship them, want to listen to their market analysis/trading opinions, and hope to learn profitable trading methods from them.
④. You start to consider other people’s “orders”, or buy some so-called trading indicators from masters, but in the end you find that these don’t work for you and you still don’t make any money.
⑤. You start looking for some masters and try to find profitable trading methods from their courses. In the process, you will be liquidated many times, suffer losses many times, and feel desperate many times, but if you don’t give up, you will slowly begin to understand the essence of trading, and at a certain moment, you suddenly enter the third stage.
3. Epiphany
In the later stage of the second stage, you begin to realize that it is not the trading system that leads to different results (loss or profit), that is, it is not the so-called technology that determines whether you can make money. At this time, epiphany appears. You begin to realize that even one moving average can make money, as long as your mentality and capital management (Note: 30% technology, 60% capital management and mentality management, 10% market) are correct. You begin to realize that it is not the technique that is important, but the Tao, so you begin to read some things about trading psychology and begin to understand some Tao in trading. You begin to realize that no one can predict the market. You no longer pay attention to how others view the market. You become an independent person who trades according to your own trading logic. You begin to believe that you can make money, no longer hate risks, and start to strictly stop losses. You no longer pay attention to the results of each transaction, but start to calculate the income on a monthly basis; you begin to use leverage and capital management correctly...
The first three stages will last at least 1 to 10 years, so if you don’t make money for a while, don’t give up easily. But if no one guides you or if you don’t know how to reflect, many people will never reach the third stage in their lifetime. These three stages will at least eliminate 90% of people who want to engage in trading.
4. Realize that trading can make money steadily
You do what your trading logic/trading system tells you to do, and don't do anything you don't understand. You can accept losses and strictly stop losses, or you can accept profits and let profits run. You start to lose and gain, but overall you lose small money and make big money, and you won't lose big money. In the end, you still make money. You are already considered a good trader, so other people start to call you a god, a teacher, or something like that.
5. The most perfect state of trading
You have already mastered trading. Every day you open orders, stop losses, add positions, and take profits smoothly, just like an experienced driver who can drive on a road he has been on for more than ten years. You will not be more excited if you make a 100% profit than if you make a 10% profit. You have taken the profit and loss for granted. You can control your emotions and become a real trader, a trader who can make a lot of money. You have become a real so-called xXx teacher. Everyone wants to hear a few words from you and ask you to express your opinion.
You have carefully honed your trading system, your Tao, which has brought you the greatest profits without increasing any risk.
Now you have a skill, an intuition. You are no longer excited about trading, and in fact, you may find it a bit boring, just like any other job.
To get to this step requires patience, perseverance, tenacity, a love of learning, and intelligence. I estimate that only 2% at most can do this, one in a hundred.
