Stage One: Unconscious incompetence
In the first step you start to look closely to trading. You know, it's a good way to make money because you've heard about this and many millionaires. Unfortunately, and as is also the first desire to drive a car you think it will be easy - indeed, so that in this complicated? !! Price moves up and down - what's the secret - start!
Unfortunately, just as the sowing for the first time behind the wheel - you will very quickly realize that it is not that going to do. You take a lot of lots and risks. Once you open a position immediately the price goes against you, you turn, and it goes against you again, and again, and again.
You are trying to compensate your losses by doubling each time your trades - sometimes it works, but most do not, and you go out in cuts and bruises.
Well, this is the first step - it is absolutely clear that you know nothing about trading. This stage lasts a week or two, but the market is fast and you move on to the second.
Stage Two: Conscious incompetence.
Stage two - it you will realize that there is much work to be performed.
You become aware of their incompetence - you do not have the skills or insights to receive regular income.
At this stage, you are buying a lot of systems and books, read sites from Russia to Ukraine and start looking for the Grail.
At this stage you will be "system whore" - will jump from method to method day after day, week after week, never stopping to notice so whether the system works. Every time a new indicator will appear you will be delighted because "it will change it all!"
You will test the automatic systems in Meta-Trader, will play with MA, Fib, soprosivleniem and support pivot, fractals, divergence, DMI, ADX, and a hundred other things, hoping in my heart that your "magic system" will work today!
You'll catch ups and downs of the price with their indicators, trying to find the exact point of the coup. You'll hold on to losing positions open, and even topped up on them because you believe that right.
You will be to chat with and see what other traders are doing pips and you will not know why it's not you. You ask a million questions, some of them are stupid, looking back, you'll feel a little silly. You will reach a point when you think that those who constantly collect pips - liars. They can not earn! Because you learn, but can not do so. You know as much as they, then they're lying! But their accounts grow with each passing day, and your falls.
You will be like a teenager - traders who make money will give advice, but you will be hard-nosed and will think that you know better. You do not listen to advice and take a huge shoulder to your account, everyone will say that you are crazy, but you know better!
You will try to use signs which are used by others, it will not work. You will try to buy signals - they also do not work.
This stage can last a very long time. More than a year. For me it was 18 months.
Gradually, you will begin to come out of this stage. You begin to invest more time and money (more than you expected). You have already merged 2 or 3 accounts, and may already be throwing this thing 3 or 4 times.
And now comes the third stage
Stage Three: Eureka!
As we approach the end of the second stage, you begin to realize that the main thing is not a system.
You realize that, generally speaking, it is possible to make money using simple MA but only if you keep yourself in the hands and you have the correct money management.
You start reading books about trading psychology and find themselves in the described characters.
And finally comes the enlightenment!
At this point in the brain there is a new link.
You suddenly realize that you do not, no one else can accurately predict what the market will do in the next 10 seconds, let alone 20 minutes. [Then I probably incorrectly translated about 20 minutes. Alexnn]
You begin to work on the same system, you adaptable for yourself, you become happier and know your "risk threshold".
You start to trade if your system shows a good probability of winning.
If your position is losing money, you do not get angry, because you know that you can not predict whether it was your fault, once you understand that the position is not in your favor - you close it. Next position will have a greater probability of winning, because your simple system works.
You immediately realize that the trading game the most important thing - to follow a disciplined system and make transactions.
You learn the proper money management and plechu- and only now you realize the truth of those who give you advice in the past.
You were not ready, but now it is not.
Eureka comes that moment when you honestly say that you can not predict the market.
Then comes the fourth stage.
Stage four: Perceived competence.
Ok, Sach you make trades when your system tells you to do so.
You take losses as easily as winnings.
You let your "winners" to run to the end (assuming risk) and you know that your system is making more money than it loses. And if you have a losing position you close it quickly with little damage to the account.
Now you are at the stage when your account is at a constant level varies from day to day. There are weeks when you win 100 pips and weeks when lost 100. In short you balance and not lose money.
Now you realize that in general, give good advice (prediction) and accumulate respect from other traders with whom to chat.
You still need to work and think about the trade, but over time you begin to earn more than lose.
You start the day with a 20 pips wins, then 35 pips loss and you do not have a feeling about this. You gave these pips, but you know that they come back.
You begin to consistently do more and more pips per week. 25, then 50, and more
It lasts 6 months.
Then comes the 5th stage.
Stage 5: Unconscious Competence
Right now, just like driving a car, you are trading a day doing everything on a subconscious level.
You are running on autopilot. You start working on large transactions and make 100 pips a day. And it is normal for you.
This business is a utopia. You control the emotions and you are a trader with a soaring score.
You - the star traders in chat. People listen to you. You recognize yourself in their questions 2 years ago.
You advise, but you know that it takes more wasted because they behave like teenagers. Some of them I will go down to your level. Someone will someone slower. Most never overcome the second level. But someone comes.
Trading is no longer exciting. She became terribly boring, like everything in this life that you have mastered. It's just a job.
Now, with her head held high, you can say, "I - trader"
I hope all of us will sooner or later reach the coveted fifth stage :)
In the first step you start to look closely to trading. You know, it's a good way to make money because you've heard about this and many millionaires. Unfortunately, and as is also the first desire to drive a car you think it will be easy - indeed, so that in this complicated? !! Price moves up and down - what's the secret - start!
Unfortunately, just as the sowing for the first time behind the wheel - you will very quickly realize that it is not that going to do. You take a lot of lots and risks. Once you open a position immediately the price goes against you, you turn, and it goes against you again, and again, and again.
You are trying to compensate your losses by doubling each time your trades - sometimes it works, but most do not, and you go out in cuts and bruises.
Well, this is the first step - it is absolutely clear that you know nothing about trading. This stage lasts a week or two, but the market is fast and you move on to the second.
Stage Two: Conscious incompetence.
Stage two - it you will realize that there is much work to be performed.
You become aware of their incompetence - you do not have the skills or insights to receive regular income.
At this stage, you are buying a lot of systems and books, read sites from Russia to Ukraine and start looking for the Grail.
At this stage you will be "system whore" - will jump from method to method day after day, week after week, never stopping to notice so whether the system works. Every time a new indicator will appear you will be delighted because "it will change it all!"
You will test the automatic systems in Meta-Trader, will play with MA, Fib, soprosivleniem and support pivot, fractals, divergence, DMI, ADX, and a hundred other things, hoping in my heart that your "magic system" will work today!
You'll catch ups and downs of the price with their indicators, trying to find the exact point of the coup. You'll hold on to losing positions open, and even topped up on them because you believe that right.
You will be to chat with and see what other traders are doing pips and you will not know why it's not you. You ask a million questions, some of them are stupid, looking back, you'll feel a little silly. You will reach a point when you think that those who constantly collect pips - liars. They can not earn! Because you learn, but can not do so. You know as much as they, then they're lying! But their accounts grow with each passing day, and your falls.
You will be like a teenager - traders who make money will give advice, but you will be hard-nosed and will think that you know better. You do not listen to advice and take a huge shoulder to your account, everyone will say that you are crazy, but you know better!
You will try to use signs which are used by others, it will not work. You will try to buy signals - they also do not work.
This stage can last a very long time. More than a year. For me it was 18 months.
Gradually, you will begin to come out of this stage. You begin to invest more time and money (more than you expected). You have already merged 2 or 3 accounts, and may already be throwing this thing 3 or 4 times.
And now comes the third stage
Stage Three: Eureka!
As we approach the end of the second stage, you begin to realize that the main thing is not a system.
You realize that, generally speaking, it is possible to make money using simple MA but only if you keep yourself in the hands and you have the correct money management.
You start reading books about trading psychology and find themselves in the described characters.
And finally comes the enlightenment!
At this point in the brain there is a new link.
You suddenly realize that you do not, no one else can accurately predict what the market will do in the next 10 seconds, let alone 20 minutes. [Then I probably incorrectly translated about 20 minutes. Alexnn]
You begin to work on the same system, you adaptable for yourself, you become happier and know your "risk threshold".
You start to trade if your system shows a good probability of winning.
If your position is losing money, you do not get angry, because you know that you can not predict whether it was your fault, once you understand that the position is not in your favor - you close it. Next position will have a greater probability of winning, because your simple system works.
You immediately realize that the trading game the most important thing - to follow a disciplined system and make transactions.
You learn the proper money management and plechu- and only now you realize the truth of those who give you advice in the past.
You were not ready, but now it is not.
Eureka comes that moment when you honestly say that you can not predict the market.
Then comes the fourth stage.
Stage four: Perceived competence.
Ok, Sach you make trades when your system tells you to do so.
You take losses as easily as winnings.
You let your "winners" to run to the end (assuming risk) and you know that your system is making more money than it loses. And if you have a losing position you close it quickly with little damage to the account.
Now you are at the stage when your account is at a constant level varies from day to day. There are weeks when you win 100 pips and weeks when lost 100. In short you balance and not lose money.
Now you realize that in general, give good advice (prediction) and accumulate respect from other traders with whom to chat.
You still need to work and think about the trade, but over time you begin to earn more than lose.
You start the day with a 20 pips wins, then 35 pips loss and you do not have a feeling about this. You gave these pips, but you know that they come back.
You begin to consistently do more and more pips per week. 25, then 50, and more
It lasts 6 months.
Then comes the 5th stage.
Stage 5: Unconscious Competence
Right now, just like driving a car, you are trading a day doing everything on a subconscious level.
You are running on autopilot. You start working on large transactions and make 100 pips a day. And it is normal for you.
This business is a utopia. You control the emotions and you are a trader with a soaring score.
You - the star traders in chat. People listen to you. You recognize yourself in their questions 2 years ago.
You advise, but you know that it takes more wasted because they behave like teenagers. Some of them I will go down to your level. Someone will someone slower. Most never overcome the second level. But someone comes.
Trading is no longer exciting. She became terribly boring, like everything in this life that you have mastered. It's just a job.
Now, with her head held high, you can say, "I - trader"
I hope all of us will sooner or later reach the coveted fifth stage :)
