All millionaire traders follow 6 stages

Michael Esther
01-25 08:23

Here's all 6 stages every trader goes through. Ask which stage you are in right now and then look at the NEXT stage to see what you need to do.

This will help you in your trading journey.

🟥 Stage 1 — Chaos & Hope

“I just want to make money.”

What defines this stage

  • Random entries

  • Strategy hopping

  • Emotional trading

  • Big wins followed by big losses

What you feel

  • Excited

  • Anxious

  • Reactive

  • Addicted to screens

❌ What keeps you stuck here

  • Searching for the “best” strategy

  • Watching others trade instead of studying yourself

  • No rules, no data

✅ What you must do to reach Stage 2

  1. Commit to one market (SPY / TSLA / NVDA not all)

  2. Pick one timeframe (no bouncing)

  3. Journal every trade, win or loss (screenshots + reason)

  4. Accept: You don’t know what you’re doing yet

👉 Graduation happens when you stop blaming the market.

🟧 Stage 2 — Technique Obsession

“If I refine entries, I’ll win.”

What defines this stage

  • Candlestick patterns

  • Indicators

  • Drawing levels everywhere

  • Constant tweaking

What you feel

  • Busy

  • Productive

  • Slightly confident

  • Still emotional

❌ What keeps you stuck here

  • Adding more tools

  • Believing precision = edge

  • Ignoring behavior

✅ What you must do to reach Stage 3

  1. Strip down to ONE setup

  2. Track outcomes, not feelings

  3. Start writing: Why did I enter? Did I follow rules?

  4. Notice when you break rules

👉 Graduation happens when you realize execution matters more than setup.

🟨 Stage 3 — Painful Self-Awareness

“I am the problem.”

What defines this stage

  • You see your mistakes clearly

  • You know when you’re wrong — but still do it sometimes

  • Discipline becomes the challenge

What you feel

  • Frustrated

  • Exposed

  • Mentally tired

  • Humble

❌ What keeps you stuck here

  • Fighting emotions instead of designing around them

  • Taking too many trades “because it looks good”

  • Not respecting stops consistently

✅ What you must do to reach Stage 4

  1. Hard cap daily trades

  2. Hard stop loss — no exceptions

  3. Reduce size until emotions are quiet

  4. Track: Rule-following % Not P&L

👉 Graduation happens when risk is boring.

🟩 Stage 4 — System & Structure

“I trade a process now.”

What defines this stage

  • Clear setup

  • Clear confirmation

  • Clear stop

  • Clear invalidation

What you feel

  • More calm

  • More selective

  • Still disappointed by some losses

  • Close… but not quite there

❌ What keeps you stuck here

  • Entering on buyer reaction

  • Confusing support with confirmation

  • Being early “to get a better price”

✅ What you must do to reach Stage 5

  1. Wait for seller failure, not buyer presence

  2. Require: Pause Failed push Reclaim / break of pullback high

  3. Accept worse entry prices for better structure

  4. Learn to do nothing for long stretches

👉 Graduation happens when patience becomes skill, not effort.

🟦 Stage 5 — Refinement & Patience

“I wait more than I trade.”

What defines this stage

  • Fewer trades

  • Cleaner entries

  • More confidence holding

  • Less emotional volatility

What you feel

  • Bored

  • Slightly uncomfortable

  • Occasionally doubtful

  • Quietly confident

What usually happens here

  • A few more “almost perfect” losses

  • Long waiting periods

  • Fewer stop-outs

  • Trades feel obvious after they trigger

❌ What keeps you stuck here

  • Second-guessing good rules

  • Adding “one more exception”

  • Letting boredom create trades

✅ What you must do to reach Stage 6

  1. Trust the sample size

  2. Stop measuring days measure weeks

  3. Focus on not losing instead of winning

  4. Let the edge play out statistically

👉 Graduation happens when you stop caring about individual trades.

🟪 Stage 6 — Consistency & Identity Shift

“This is just what I do.”

What defines this stage

  • Process > outcome

  • Emotionally neutral

  • Small drawdowns

  • Steady growth

What you feel

  • Calm

  • Detached

  • Professional

  • Grounded

What happens here

  • You pass on most setups

  • You don’t explain trades to anyone

  • Losses barely register

  • Wins don’t excite you

What keeps you here

  • Respecting risk

  • Protecting mindset

  • Staying boring

This stage isn’t loud. It’s stable.

Make sure to follow us at

@SuperLuckeee

for more trading analysis, education and ideas! The key truth (read this twice)

Most traders fail because they try to skip stages.

For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.

🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now

Find out more here.

Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.

Click to access the activity

Other helpful links:

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment
1