DislikedThere are the 4 stages to Forex Trading... Here is the link to the first two stagesIgnored
How to ‘grow and mature’ as a trader
I call the third stage the ‘growing and maturing stage’.
This is when you start to become a serious student of forex trading and really learn how to trade.
Because by this stage... you respect the markets.
You see, in the first two stages you’ve had a taste of the highs and lows. You’ve experienced both the huge benefits and the real dangers that you could face as a forex trader.
And having tasted the downs as well as the ups, if you’re still determined to make it as an independent trader at this point...
You’re well ahead of the crowd.
Many quit before this and rarely consider trading again should they experience the second ‘crash and burn’ stage.
But as far as I’m concerned, that’s a real shame...
Fact is, if you quit at this stage, you’ve only made it half way on the journey.
To fully understand and appreciate the potential of forex, I believe you need to complete all four stages.
So, how do you work you grow and mature as a trader?
Well, I think it’s at this stage that you really need to look outside of yourself for trading experience.
So far, you’ve relied on, well, not much. You were in both the first and second stage, you were really just ‘winging it’, hoping for the best...
But it’s by accepting that you need some guidance that you can really start to guide yourself.
By testing out and trying different trading systems, you’ll discover which kind of trading best suits you.
It might be that you prefer trading a system set to a specific time each morning or it might be that you prefer more reactionary trading throughout the day.
The other big advantage of following the guidance of a more experienced forex trader is that you can become more familiar with risk management.
Any forex trader worth their salt will have a risk management element built in to the system or service and it’s by applying risk management to your own trading that you start to understand its obvious importance.
So, whatever stage you might be at...
Maybe you’re in the ‘euphoria stage’ and no matter what I tell you, you think you’ve got it all sorted...
Or if you’ve got through that and you’ve hit some bad luck and you’ve crashed and burned...
Don’t give up: keep investing in your forex education, follow the advice of the experts and work out what kind of forex trading best suits you.
It might be that you need to try some different systems or maybe attend a seminar... it might be that you need to put yourself out of your comfort zone a little...
But if you keep moving forward, if you keep gathering your own forex experiences, then you’re sure to start growing and maturing as a trader.
Understanding you’re in it for the
long haul
So, the final stage I call the ‘long term reward stage’.
When you find yourself at this stage you’ll be trading in a way that consistently makes you money...
You’re regularly picking up more profit points than you lose.
And not only are you making money, you’re trading in a way that suits you and your lifestyle.
You’ll know when you’ve reached this stage as you’ll be more relaxed when trading...
You’ll know exactly what you are looking for...
And why you see it, you’ll purposely place your trade without any stress or hassle.
Gone will be the days of panic trading and running around like a headless chicken.
For me, this stage is reminds me of being an experienced fisherman.
When you become more experienced as a fisherman, you only go out when you expect a lot of fish.
You deliberately set up your tackle in the best place, add the bait and then cast your line.
You sit back, relax, enjoy the view... just being sure to keep half an eye on the float.
In fact, some actually have a machine to do this that sets of an alarm when they’ve got a bite.
However you do it, you sit there on the bank at peace – and that’s what’s important.
The joy of becoming a contented trader
When you’re content in your trading, when you enjoy the trading itself, then you’ve won the battle.
Just like the fisherman who doesn’t catch anything that day, you know that there’ll be more fish along soon and when it comes down to it... you still enjoyed your day.
In trading, by this point you’ve learnt about risk management, so you know you’ll not be wiped out.
You’re confident to place the right trade and you’re confident you’ll place it at the right time.
And you’re patient to wait for each trade to play out, managing it as it unfolds.
There’s no guesswork, no panic.
You follow the approach you’ve practiced and practiced... the approach you discovered was best suited to you... the approach that now generates you a regular second income.
So, that’s where you want to be...
Goodnight folks and see you soon!