5 Ways to Become a Successful Trader - Being a trader, like other professions, is not something easy. Many people want to be a successful trader, but forget that being a successful trader is a process. There are several steps that must be passed by a trader before becoming a successful trader. Read this article to know the 5 steps become a successful trader
5 Ways to Become a Successful Trader is not the article that I wrote myself. I found it on the internet, the original in English. There are also translations of Indonesian language, but very messy. Finally I fix it and translate freely because I think this article interesting.
LEVEL 1: Unconscious Incompetence
The first step begins when you open a trading account. You become a trader since heard that a trader can beat the revenue income of a large company director. Anyway during the simulation with a virtual trading, you managed to get a 3-fold profit, then what is the big deal?
You may be able to profit with stunning results to several tens of percent per day, but it all just hockey only. You may initially rely solely on one indicator only, or even just by instinct, anyway you can profit. Unfortunately, the market will beat you. No successful trader only by a factor of LUCK. Losses for the sake of losses up to you. You try to survive until the capital runs out.
You did not realize that you can not trade. You still think you can trade even if all the facts say otherwise. You still think that you are a special person, one who would be able to get the key to the wealth of trading. And you do not realize that 90% of traders fail to also have such feelings. You do not have a complete system, controlled by your emotions, and always averaging position if the loss of anger (ANGER) on the market. You always take profit in small quantities or letting a profit turn into a loss because you are ruled by greed (Greed). You are always afraid to take a position (FEAR). You allow yourself to be controlled by emotions so that capital is getting eroded.
90% of people who fail to become a trader only up to this level. They usually give up, stop trading and take it all just a bad dream again belaka.Sebagian moral plummeted, they still include funds and trading like crazy. Within a month or two months of the margin out. 90% of traders are on this level, and only 10% were aware of and move to level 2.
LEVEL 2: concious incompetence
At this level, you realize you can not trade, you do not have the ability to generate trading profits consistently. And you know the solution, you are aware that over at level 1 your mind clouded by your emotions so you can not think clearly. At this level you will be looking for the holy grail (the perfect system, the system is 100% profit, a system that never loss), you start to buy the existing system on the internet, you read all the websites that exist on trading from the UK, USA, Australia , Europa to Russia. You read all the books are there, you practice all of the system you get. Your thirst for knowledge as a wanderer in the desert thirsty for water.
At this level you will read all the details about the indicators, you might even create your own indicators. You will play around with moving averages, Fibonnacci lines, pivot points, Camarilla pivot, Demark, Fractals, Divergence, DMI. ADX, Bollinger Bands, and hundreds of other indicators. You know that the market is too complicated to be predicted only by one indicator alone. You know the ideal combination of each indicator. You know the exact advantages and disadvantages of the indicator.
You will try to guess at the bottoms and top with indicktor the market. You will join a chat room traders and asking stupid questions on senior trader. But this is not over, still a long way to become a successful trader. Of the 10% of traders on this level, only about 7% of the successful move to level 3.
LEVEL 3: THE EUREKA MOMENT
At the end of level 2, you finally realize the main problem lies not in the system. You realize that you can get a profit even if you only use a simple system such as moving average without any other indicators, if you can use your head and money management right. You start reading books on trading psychology, and identify with the characters described in the book. Finally came the Level of Enlightenment.
Level enlightenment makes your brain realize one important thing. In this world no one is able to accurately predict what will happen in the market, even for 30 seconds. You begin to master the trading system and modify it to fit your character, and able to provide more profit than the original system. You begin to trade if you know the probability for a larger profit than for loss, you are only trading if there is a signal from your system. You always use stop losses, because you know the stop losses are business risks that exist in the world of trading. When you hit stop losses, no emotion because you know no one can predict, and it's not your fault.
You instantly realize that the trading in the world there is only one thing that is important is consistency in the system, trading psychology and money management. And discipline to the system no matter what. You learn more about money management, 2% risk, and other things. It reminds you of 1 year ago when someone gave the same advice and you choose to ignore it. When that you are not ready, but now it is.
At the level of enlightenment, your brain will accept that you can not predict market movements, because nobody can. Of the 7% of traders on this level, only about 5% were successfully advanced to the next level.
LEVEL 4: Conscious COMPETENCE
Okay, now you're just trading system if and only if you give the signal. You cut losses equally trivial to take profit. because you know your system will give more profit than loss, and cut loss that you do is a business risk that a maximum of 2% of your account.
At this level you start with a target profit is quite small, and once you are able to do it consistently for a few weeks, you increase the target. And it was in the end able to do. You do still have to work hard to get it, fix your system, master your emotions, and implement money management. Of the 5% of traders only about 3%, which could advance to the next level.
LEVEL 5: Unconscious COMPETENCE
Well now you get to level 5. This is the lowest level expected by all traders in the world. At this level you can trade in nature, you have mastered it all. You can Dancing with the Market, the direction the market is running, you have open in the correct position, so you can just see the profit you move from 2 digits to 3 digits.
This is the top level of a trader, this level of utopia, you have mastered your emotions and you are now trading account continues to grow each day from the cumulative profit you earn. You will be a star in the trading chat room, and people will listen to what you say, you are familiar with their questions, because you were positioned on them a few years ago. You will provide advice to them, but you know that most of them will not listen because they still trader level 1.
You will not have financial problems, you can afford to buy all the items available for sale. You can buy the island and trading there as long as there is internet connection, you can move to a 5 star hotel, and a permanent resident there. You have income like a superstar, you can create your own book, you can trade on margin without limit, and your account will be many times more than the initial value.
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