Like the metamorphosis of a butterfly;
which starts from the egg which continues into the caterpillar phase and then becomes a cocoon and finally manages to be a beautiful butterfly;
so too are the phases that a trader must pass. There are several stages that will generally be experienced by traders who are involved in financial markets.
Like the stages in the world of education that starts from the kindergarten stage, then elementary, then junior high, high school, college, graduate and work in the professional world.
Phase "TK"
Generally, in the "TK" phase a prospective trader is not aware of his inability. This is the first mask of a trader when it starts to plunge into the world of trading. He knows that trading is a very good way to make money through internet media, through the success stories of a person or a friend of his own who experienced it.
Unfortunately, achieving that success is difficult and requires a process. He must learn how to estimate where prices will move? Up or going down? Without clear guidance, he will lose his grip and will tend to get confused. Then he tends to take a lot of trading positions at great risk. Error after mistake continues to occur, where the price is always opposite to the position taken that traders end up losing and it turns up again and again.
At first he may be able to generate some profit, but then the condition becomes bad, the mind becomes chaotic and eventually, he takes more risks by trying to restore the situation by doubling the transactions. Unfortunately, revenge does not produce anything but an increasing loss.
It was in such conditions that he began to realize his inadequacy. Usually, these periods last for 1 week to 1 month.
Phase "SD"
This elementary phase is a time when a trader is aware of his inadequacy. At this stage, he began to realize the need for more efforts to achieve success in the world of trading. He began to realize that he was an incompetent trader and did not have the knowledge to make a profit. He has started learning about trading systems, reading trading websites, testing robots, logging into forums, trying different types of indicators and hoping that a "holy grail system" will soon be found. There are also traders who try to buy and pay signals or systems from others, only, unfortunately, the signal or the system does not work in accordance with his wishes because one's trading system is not necessarily suitable when used by others. This stage can last for years. This phase is usually the stage when a trader is very likely to feel frustrated and give up. It can be said about 40 percent of traders give up in the first three months. While 30 percent survive for 1 year. While 20 percent still continue to struggle for 2 - 3 years to get success in this field. However, the remaining 10 percent, which will be the forerunner of consistent profit generator.
How?
Where are you now?
Wait for phase "SMP", "SMA" and "University" reviews in the next discussion.
Maybe useful.
Happy Trading.