The 5 Steps to becoming a trader | Page 3 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

how many pips did you lose before becoming a succesful trader? 19 replies

The turing point in becoming a successful trader 19 replies

A newb's quest to becoming a better trader (journal) 4 replies

Interested in becoming a Fozzy-style trader? 57 replies

The 5 Steps of becoming Successful Trader 13 replies

Attachments: The 5 Steps to becoming a trader
Exit Attachments

The 5 Steps to becoming a trader

  • #41
  • May 14, 2007 9:08am May 14, 2007 9:08am
When Soultrader posted this at MoneyTec, I mentioned that it was basic NLP. He got a bit pissy about that, as he was wont to do about many things. Being a moderator, he removed the brief discussion we had about it. I think he wanted to take credit for the concept, which is sad. Nonetheless, all of the possible authors mentioned in this thread got their info from NLP. It's one of the most, if not the most, powerful techniques for true, permanent change in your life. It's worth looking into.

Nat
  • #42
  • Aug 24, 2007 9:26pm Aug 24, 2007 9:26pm
I read this back when Dialist first posted it (when I was a much fresher newbie) and it stuck with me.

Thought I'd bump it back to the top. Good read.
Is your SL my TP?
  • #43
  • Aug 25, 2007 12:34am Aug 25, 2007 12:34am
Quoting diallist
The 5 Steps to becoming a trader

... One day - im a split second moment you will enter stage 3.

Step 3 - The Eureka Moment

Towards the end of stage two you begin to realise that it's not the system that is making the difference. You realise that its actually possible to make money with a simple moving average and nothing else IF you can get your head and money management right You start to read books on the psychology of trading and identify with the characters portrayed in those books and finally comes the eureka moment.

The eureka moment causes a new connection to be made in your brain. You suddenly realise that neither you, nor anyone else can accurately predict what the market will do in the next ten seconds, never mind the next 20 mins.


Because of this revelation you stop taking any notice of what anyone thinks - what this news item will do, and what that event will do to the markets. You become an individual with your own method of trading


You start to work just one system that you mould to your own way of trading, you're starting to get happy and you define your risk threshold.

You start to take every trade that your 'edge' shows has a good probability of winning with. When the trade turns bad you don't get angry or even because you know in your head that as you couldn't possibly predict it it isn't your fault - as soon as you realise that the trade is bad you close it . The next trade or the one after it or the one after that will have higher odds of success because you know your system works.


You stop looking at trading results from a trade-to-trade perspective and start to look at weekly figures knowing that one bad trade does not a poor system make.


You have realised in an instant that the trading game is about one thing - consistency of your 'edge' and your discipline to take all the trades no matter what as you know the probabilities stack in your favour.

You learn about proper money management and leverage - risk of account etc etc - and this time it actually soaks in and you think back to those who advised the same thing a year ago with a smile. You weren't ready then, but you are now. The eureka moment came the moment that you truly accepted that you cannot predict the market.

I'm feeling like I'm at this stage, as I have done all of the previous... Started trading in july. 05, and have had many hard feelings...but still hanging in there. have put so much into it, it would be a shame to end it.
  • #44
  • Edited 2:21am Aug 25, 2007 2:20am | Edited 2:21am
After trading for 8 months I am stuck fast on the edge of step 3, desperate to move on but can't. Maybe it's time to give up before I blow my account - again.
  • #45
  • Aug 25, 2007 2:50am Aug 25, 2007 2:50am
Quoting proctorforex
After trading for 8 months I am stuck fast on the edge of step 3, desperate to move on but can't. Maybe it's time to give up before I blow my account - again.
I blew my first account. Then started another smaller one and toasted that one too. Learning Forex was getting expensive. Giving up is not an option for me. I've tasted success with trading and so now that I know it can be done, I will trade as many demos as needed to prove myself. Blowing up demos is cheap, eh?


The psychological issue with trading demos is that because they aren't really "your money" you'll trade differently. I've overcome that by making a rule for myself. Before I fund another account, I will trade one demo, based on exactly the starting capital I intend to use when I go live, for one month straight and net positive weekly profits.

I can tell you that this rule has kept me honest because I will never trade live until I pull it off- and the inspiration is there. I've been trading this puppy like it's the real deal, right down to calling my wife from work and having her open and close positions for me.

Since I've implemented this, my trading has changed...something's beginning to "click". As of this trading week, I have 26 trades with 80% wins. It can be done- and I'm going to do it. I realize the so-called ninety-percenters mostly don't succeed because they come to a place where they think it can't be done. It ain't so.
Is your SL my TP?
  • #46
  • Aug 25, 2007 3:29am Aug 25, 2007 3:29am
That is an awesome post.

The predictability of human behaviour never ceases to amaze me. No matter how different I think I am, I somehow always end up fitting perfectly into the stereotype.

After 5+ years of totally absorbing myself in the markets I finally hit stage 3 a few months ago (yeah, I know, I'm one of the slower ones, or should I say one of the more stubborn ones) and now have stage 5 firmly in my sights.

Agro
  • #47
  • Aug 25, 2007 5:42am Aug 25, 2007 5:42am
Awesome indeed.......
  • #48
  • Aug 25, 2007 5:49am Aug 25, 2007 5:49am
It's all about using good money management and having the right mind for the market (psychology), once you've mastered those 2.. the rest will come
Trade what you see, not what you think.
  • #49
  • Aug 25, 2007 6:33am Aug 25, 2007 6:33am
Quoting diallist

You see the newbies in the forum shouting 'go dollar go' as if they are urging on a horse to win in the grand national and you see yourself - but many years ago now.
LOL ! ! ! What a convergence of benefit and amusement.
Thanks for that gem, to Dial and whoever you are who put this one together.

Thats how I want to look back at the end of this life.....laughing about myself.
  • #50
  • Aug 25, 2007 10:37am Aug 25, 2007 10:37am
This is the first time I read this thread . I was stuck in stage 2 with wrong attitude for quite a long period (7 months+)... Now at the door entrance of stage 3...Thanks for bringing this thread up again or else I will miss this fine gem.... Copy & paste the 5 steps to serve as a reminder while making my journey to reach step 5...
  • #51
  • Aug 27, 2007 5:27am Aug 27, 2007 5:27am
I voted in this poll a while ago, and I'm glad to see this thread still picking up the views. I have made some progress and recognise the small steps made from the list in post #1. I think I will have it framed.

Quoting proctorforex
After trading for 8 months I am stuck fast on the edge of step 3, desperate to move on but can't. Maybe it's time to give up before I blow my account - again.
Look inside yourself. The desperation you speak of is the thing which you must quell before you can move forward. Myself I am in stage 3. I still make some pretty dumb moves, but I stopped looking at systems to do the work for me. I look at them to see what jem of wisdom can be extracted.

Someone in FF wrote "every loss I take makes me a better trader". He was and is so right. You will always make some losses, by 'taking' a loss it means understanding what you did that caused the loss to be bigger.

I hope that does not sound patronising.
Minesweeper target: 284
  • #52
  • Aug 27, 2007 7:17am Aug 27, 2007 7:17am
Quoting Primate

I hope that does not sound patronising.
It doesn't and thanks.
  • #53
  • Edited 12:44pm Aug 27, 2007 12:41pm | Edited 12:44pm
I am seeing this thread for the first time. I am amazed at old it is too..2005..yes Im new .

It gave me a wider view of how I need to be thinking and where I need to go. Im at Step 2.

I hope I get over myself soon
  • #54
  • Aug 27, 2007 1:12pm Aug 27, 2007 1:12pm
Quoting nevermore
I think the author`s name is Jared F. Martinez of markettraders.com also the author of "The 10 Keys to Succesful Trading" dunno 4 sure

step 2 for me
Best wishes ..
yes, it must be jared
100% of traders are losers. Just that some win more than they lose!
  • #55
  • Aug 27, 2007 1:35pm Aug 27, 2007 1:35pm
Thought I’d chime in with a word of caution here. I noticed a few posts from stage 2 and 3 guys talking about funding small live accounts after trading demos successfully. Be cautious here for a number of reasons:

  1. Trading requires hard work, thus adequate compensation is expected. In other words, a 10% gain on your $500 demo is only a mere $50. Maybe that first trade just fell on your lap, the next one in all likelihood will not… you may have to sweat out that 10%. Depending on the trader’s financial situation, a $50 dollar gain for the amount of effort that went into acquiring it may be a it demoralizing to some extent. This tends to get the trader acting a bit more risky in regards to their position sizing and execution. Obviously to reach a balance between the work involved and the expected compensation. If you think this is rubbish, ask some of the other stage 2 and 3 guys that have live accounts how many dollars they’ve already wasted in re-funding their account because of margin calls. You’ll be surprised… if their honest with you.
  2. So what’s the solution? Why not start with defining what a successful demo trading experience is. Is not ironic that so many so called successful demo traders burn their live account repeatedly? Not really. Most will argue that it is because “the money is real”. This, in my opinion, is not accurate. We just went over the idea that the dollar amount to your first mini is “peanuts”. Don’t kid yourself into thinking otherwise. I propose you start a demo with a real number in mind. Perhaps you’ve saved up $10,000 and you’re considering using it for trading. Don’t piss it away incrementally by re-funding you’re mini account. Be honest with yourself. Set a guideline for your demo; “I will turn a $10K account into X amount of dollars”. This will define a successful demo run for you. Then repeat the process one more time, and open a live account with that $10,000.


If anyone feels that this pure lunacy that’s fine, I’m open to discussion… though not a lengthy one.

Good day,
MM

  • #56
  • Aug 28, 2007 7:24am Aug 28, 2007 7:24am
I'm on the third step and I know where am I heading to after reading your article. Oops not forget to say thanks.
  • #57
  • Aug 28, 2007 8:02am Aug 28, 2007 8:02am
I am probably level 4. I don't get emotional anymore, that really is the traders enemy.
  • #58
  • Aug 29, 2007 4:04am Aug 29, 2007 4:04am
Seems I am an arrogant Newbie,
refusing to let go my bad trade and keeping it......

So I am between Level 1 & level 2
  • #59
  • Aug 29, 2007 5:21am Aug 29, 2007 5:21am
Quoting Mr demark
yes, it must be jared
Actually, I believe that http://soultraderdiary.blogspot.com/ is the author's blog. A quick search of his site will find what I believe to be the original article, though I may be wrong.(Apologies to Merlin in advance if my posting this link violates any rules.)
  • #60
  • Aug 29, 2007 11:27am Aug 29, 2007 11:27am
yup, i wrote it
https://linktr.ee/Soultrader
0 traders viewing now