A little review, to become a successful trader, needs to go through stages like we start in education. Starting from the kindergarten stage, then elementary, then junior high, high school, university, graduated and worked in the professional world. Analogy, if you've graduated and worked in the professional world. Continuing the previous article, the author will explain the next phase of the junior high, high school and university.
3.Phase "SMP"
Toward the end of the "SD" phase, a trader usually starts to realize that it is not the system that makes a difference. He realizes that to consistently generate profits there is no other word he should be able to manage the psychology that is in him and manage his finances well. He will start reading books, surfing the internet or anything about trading psychology and identifying the characters depicted from what he has read.
Because of this thinking, he begins to stop swallowing the method of thinking or analyzing others. He became an individual with his own independent trading system and began to act with the system he had created himself. He begins to gain comfort and can set limits on his risks. When the results are bad, it is not easy to be emotional. He started thinking he would have a higher chance of success next time because he knows how his trading system works. In this phase, he has realized that the most important thing in trading is consistency in risk management and discipline in taking action.
4.Phase "SMA"
In this "high school" phase, a trader will be aware of his competence in trading. He will make transactions each time his system gives a signal to enter the market. He accepts the reality of his loss, just as easily when he makes a profit. He can fully accept the risk and know that his system can make more profit than loss. Even extreme, when he is in the position of floating loss, he will quickly close the position if the situation is not possible with a view to minimize the risks that may be faced.
He is now at a point where he feels he has got the most out of his trading. This can be said consistent profit. It could be that he will get 100 pips in a week week but in the other week he lost 100 pips, although overall he remains a profit.
5.Phase "University"
In this phase, when a trader trades it will feel like driving a car. Every day he can sit in his chair and do trading and everything on the subconscious level. He can start to choose large trading volumes and earn hundreds of pips a day. This is normal for him, and does not make him too over-excited compared to when he only gets 1 pip.
When he graduated from this phase, he had come to a stage where he had mastered emotions completely with his rapidly growing account. The trading method has not changed, it's just that he has mastered the method. Now he is said to have had what he called "intuition" and can say firmly, "I am a trader."
How are the readers? Where are you at now? Keep learning and trying to get you through every phase and will lead to success in the trading world.