Level One: Unconscious Incompetence
This is the first step that you make when you just start to engage in trading.Do you think this is a good way to earn money, because I read a lot of positive and had heard that familiar acquaintance trade earns a lot of money.You look at the charts: price moves up and down - that is so tough - fight!
Unfortunately, when you open its first position, you do not have a clue that trying to do.You open a lot of orders and take disproportionate risks.When you open a position, and the price goes against you, you open the opposite order, then again the opposite, and again, and again.
You may be lucky, and this is only worse - the brain starts to think that all this is very easy, and you start to risk all large sums in each transaction.
You try to cover their losses, doubling the exhibition in each new transaction.Sometimes it rolls, but often leads to greater losses.You totally lose their incompetence in the trade.
This stage can last for a week or two, but th
Level Two: Conscious Incompetence
At the second stage you understand that forex trading requires more work and you need something to learn.You realize that you are an incompetent trader - you do not have the skills and knowledge to obtain a stable profits.
You're obsessed with the search for, and often purchase a variety of systems, advisors, indicators, etc.You jump from one method to the other, day after day, week after week, never using one system long enough to ascertain its ability to make a profit.Every time you come across a new indicator, do you think that he will change everything.
You will test the automatic system in the tester the Metatrader, you'll play with moving averages, Fibonacci lines, support and resistance, pivot points, fractals, divergence, and hundreds of other indicators in the hope that they will lead to a "magic system".You're going to catch the bottom and the top of the trend, trying to calculate the exact point of reversal with the help of their indicators, but in the end you find yourself holding a losing position and even increase them - because you're right !!
You go to any chat or forum and see how others take point by point, and you want to know - why you can not?You ask a million questions, some of them are so stupid, that looking back, you yourself become a little ashamed.By the time you reach the point where you think, that all these traders taking profits transaction after transaction, just liars - they can not earn as much, because you learned a bunch of systems and can not.You know as much as they, so they all lie.But all these traders still, day after day sitting in this chat and balance on their accounts grows while your account is only reduced.
You're like a child - traders who make money, freely give you advice, but you're too stubborn and think that you know better - you do not pay attention to their advice and you trade at risk.Even when all tell you that it's crazy - because you know better than them.You try to follow the signals of others, but it does not work and you start paying for signals from someone else - these signals do not work for you.
You can even pay certain "gurus" that promises to make you a trader.Whether the guru is good or not, you still lose, because the monitor you trade you, not a guru.And you still think you know better.
This stage can last for a very long time.In reality, it may take a year or even three.It was at this time is likely to give up and totally disappointed in Forex.
About 60% of new traders leave within the first 3 months - they give up and this is good - for yourself, think if trading was easy, we would all be millionaires.Another 20% continue to trade for about a year and then in desperation hold great positions and lose your deposit ...
What may surprise you is the fact that the remaining 20% stretch for about 3 years, and only 5-10% of the remaining will continue to trade andwill consistently earn.
Gradually you will begin to move to the third stage.Perhaps you've spent more time and money than ever thought before you start trading.You've already lost a few deposits, a couple of times let down his hand, but still holds.
One day - in some seconds, you move to the third stage.
Level Three: "Eureka!»
At the end of the second stage you start to realize that it is not in the business system.Do you realize that you can make a profit, using only one moving average and nothing more, if you manage to cope with their emotions and developing competent risk management.You begin to read books on the psychology of trading, identifies himself with the characters described in these books, and finally comes the moment of "Eureka!".
Psole this point, if there is a new vision in your head, and you suddenly realize that neither you nor anyone else can predict what will happen in the market in the next 10 seconds, let alone 20 minutes.
With this revelation you stop to look who he thinks - that they write all sorts of analysts, etc.You become an individual with your own method of trading.
You start to work just one system that fits your trading style.You obviously happier and define your risk threshold.
You open each item that you think is more likely to profit.If the market goes against your orders, you start to get angry or nervous, you just quietly close your position.Next transaction or thereafter, or in another one, will have a greater chance of success because you are sure that your system is working.
You stop looking at trading results from transaction to transaction, and evaluate the results of the week, month.Because you know that one bad trade does not say anything.
you realized that all the trade depends on the constancy of your beliefs and discipline to take all the transactions in the system, because you know that the advantage of probability on your side.
you learned from and to capital controls and risk management, and now feel how important it is, with a smile, remembering the advice of others, from which you waved a year ago.After all, they were right.Moment "Eureka" comes when you fully realize that you can not predict the market.You are about to go over to the next stage of becoming a trader.
Level Four: Conscious Competence
You open transaction, every time when your system gives signals.You close unprofitable orders as easy as profitable.Now you let your profitable trades to grow until there is a signal to the output, taking full risk and knowing that your system brings more money than it loses.
Now you're at the point where you most often bezubytka - day after day, week to be with you, when you earned 100 points, and the week when you lose 100 points - in general you stop losing money and understand the rules of the game.You still have to think about your trades and spend a lot of observations, but you already begin to consistently make more money than you lose.
Your day can start with a win of 20 points, then you take a loss of 35 points, and did not feel that he gave 20 points back, becauseyou know what they are to you vernutsya.Ty begin to receive a steady income, week after week, sometimes more, sometimes less.
This stage lasts for about six months.
Level Five: Unconscious Competence
you trade as if you brush your teeth or going on a bike - do not hesitate.You're like on autopilot, you're making a transaction at an unconscious level.You start to get really big profits, and 200 points in a day does not make you more agitated than 1 point per day.
You look at the newcomers to forums screaming "falling dollar, fall!" And remember a lot of years ago.
you mastered your emotions and your account is growing steadily.
Trading turns into a routine - you simply carry out their daily work.
You're constantly putting the finishing touches to its trading system to extract more profits from the market without increasing risk.Your method of trading has not changed - he just got better, now you know what is called intuition in trading.
Now you can say with your head held high "I'm a currency trader" but to be honest, you're not in a hurry to shout about it at every corner, it's a normal job like any other for you.
Remember that only 5% are successful traders and reach the last level, but the reason is not ability, but rather to stay strong and be able to change their paradigms and views with the arrival of new information.
The losers are those who want to get rich quick, and is not able to change their "I know better."
If you currently have nothing happens and you are ready to give up, ask yourself one simple question: « How old are you ready to go to college, knowing that at the end of training you will work with a salary of a million dollars a year? «
Thank you for your attention and wish you every success in the trade.