For Every Trader, In trading, There Are 4 stages in My Opinion

Michael Esther
05-23

In trading, there are 4 stages in my opinion:

  1. Beginner and Learning to trade

  2. Intermediate but not consistent

  3. Consistent and not profitable

  4. Profitable and Consistent

The goals of each stage is drastically different from the rest. Here are goals of each:

Beginner and Learning to trade

  1. Learn your 1-2 set-ups.

  2. Execution of your set-ups.

  3. Taking 3-5 trades a week

  4. Review

Intermediate But Not Consistent

  1. Mastering risk management and position sizing.

  2. Mastering emotions such as greed, FOMO, revenge trading, exhuastion, lack of focus and loss aversion

  3. Perfecting your trading system and being comfortable with it.

Consistent and not profitable

  1. Reviewing trades to learn from mistakes each day.

  2. Being able to take profits and exits trades properly (win or loss).

  3. Taking only 3-5 trades a week maximum until you are profitable then you can take 5-10 trades a week. Then gradually increase. (This is a # of trades/week goal not a $$$ goal)

Profitable and consistent

  1. Hitting your weekly $$$ goal for gains but also not losing more then $$$ weekly loss tolerance.

  2. Not overtrading and recognizing overconfidence daily (awareness).

  3. Emotional and Psychological mastery

Trading Psychology
Trading psychology refers to the emotions and mental state that help to dictate success or failure in trading. How do you build a trading psychology? Share with others here>>
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Comments

  • JimmyTurner
    05-23
    JimmyTurner
    It's important for every trader to understand the different stages in trading.
  • JoBloor
    05-23
    JoBloor
    It's important to continuously learn, adapt, and improve throughout each stage.
  • ElsieDewey
    05-23
    ElsieDewey
    It's important to continually learn and improve in trading.
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