3 Stage Trader

Every new trader, or those who received energy to be successful, must understand that the road ahead is not easy and it is not like a fast, exciting trip. The way that they will be, filled with daily challenges, which will check their skills, both technical and psychological. In fact, most traders can not pass the initial stage. They have not been able to learn:

. Accept the loss
. Being wrong
. To succeed, they must spend the time required to study this!

One established fact, which is spoken by all successful traders, including Borselinno, Fisher, Jones and others, is that to become a successful trader takes time. Borselinno said that at least a year, Fisher said, perhaps 2 years, but they all say that this business has nothing to do with instant success. And just the opposite: the most successful traders say that survival is the first key to success. Expressions like "Love to take the loss" or "Keep losses small," all refer to the fact that, indeed, we need to survive, to flourish.

As a business - a consultant, I often agree to work with business owners, top managers and those who decide to offer them fresh ideas about the business - procedures. For many years, I have documented a cyclic model of types of businesses as they develop. Here in this article are some identifiable characteristics of 3 stages that I have identified and described as they relate to the type of business such as trade.

Typical of many stages of initial stage in trade:

. Traders lured a lot of money
. I feel a low barrier to enter the business
. Susceptible to the influence of advertising on Equal Opportunities
. Look what others had done so
. Read some books
. Attend several seminars, and receive all that is available on the Internet
. Has some speculative capital
. Traded
. Wins
. Lose
. Lose
. Find that the correct tools are needed, but I think that they can not allow ourselves
. Think "I should try something more complicated, even if that does not understand that just tried to do, no tools, no trade in general
. Lose more
. Understand that really needs to work on "planning" and how to change their emotions from the enemy for their own ends in the direction of a powerful force that will guide their actions. Finally, understand that good to take a loss (in fact, they find that it was the first lesson that is needed to learn to survive!)

Survival in fact is the goal for the initial stage. So, then they are trained to go to the stage of growth.

Typical stages of Phase Growth in trade:
. Traders are trying to get the appropriate education and proper equipment
. Indeed some things are exploring
. Plan their trade
. Trade with better results
. Decide to complicate the sale of unknown reason
. Lose patience
. Lose
. Simplify again, improve their methods
. Understand the importance of patience in the trade
. Beginning to take greater risks
. Punished by the market stronger than ever before
. Now have a problem with pressing the "trigger" when the signals are clear
. Beginning to understand the importance of discipline
. Reveal the mechanics of trade
. They study the life cycle of trade
. Stabilize their capital as planned, using strict money management
. The cases are better
. Beginning to actually take responsibility for their own actions
. Cease to look and begin to concentrate.
This is the key to the transition to the stage of maturity.

Typical stages of maturity stages in Trade:
. Traders are patient in their efforts
. Become disciplined enough to trade in line with its plan
. Understand leverage
. Practice strict money management
. Take fewer risks, preferring to use the amount to a strong signal
. Learn how to deal with a huge dollar profits, but to stick to its plan (return on investment against time for money)
. Learn how to deal with the huge dollar losses, but stick to its plan (return on investment against time for money)
. Really understand the life cycle of trade and may accordingly plan their trade
. Allow time for education and study
. Now the trade is happening on autopilot, selecting the best deal to pay for risk
. Make their top priority in its trade plan

The fact is that many people were on this path, but very few have succeeded. I think it would be prudent to go on that road, knowing in advance the natural trend of development progress in this business, and how you can prepare to improve their chances by using appropriate tools and education, as well as a serious plan each stage.

Forex Magazine
based on www.screamingquote.com