The 5 Steps to becoming a trader

Hi guys i think i am in step 2 and found this thread very useful if you have more similar article please post so then it will help to be more successful

thanks for article

NEVER GIVE UP!!!

Thats the key 98% quit before reaching stage 4 or above, not saying all of the 98% have the ability to reach stage 4+

The author.........quote from original text......


Janice Dorn, M.D., Ph.D.
www.thetradingdoctor.com

Janice Dorn, M.D., Ph.D., is a financial psychiatrist and chief global risk strategist for Ingenieux Wealth Management in Sydney, Australia. She also offers trading consulting and coaching services via her Web site, TheTradingDoctor.com.

just pushing the thread up

up again

cobraforex put it in brief and clear words:
http://www.forexfactory.com/showpost...1&postcount=75

up up up

upupup

Yes. Psyche matter. MM matters. However, discovering your edge is number one in my book. You can kill any type of uncertainties through experience. It's better if we discuss about MO. rite?

yup,
its finally about how u manage ur winners and how u manage ur losses ...
edge to me is your experience , MM to me is your risk appetite and comfy zone

Edge for me is completely mechanical and not discrete. I believe in holy grail. hehe.

Hi all,

I'm glad that someone posted these steps to provide a "road map" for traders, so to speak. After years of figuring it out I would say that the most important step in trader development is recognizing the role that RANDOMNESS plays. Especially traders who operate between 5m and 1 hr time frames are subject to market randomness. This is often the cause of getting stopped out and then price later moves to your profit target. Happens to every trader.

I wish everyone the best and if anyone is interested in hearing more about randomness let me know, because it is a fascinating subject and can make you a better trader.

Kris M

up up up

approaching the market like it is random makes a lot of things easier

Excellent information, and I recognise some of those steps/stages ...

Arrrgggghhhhh slipped back to step 1 if not below, only had a little nap damn my middle age!!!

when u find a path to the top , it doesn't matter how many times u fall , u just have to climb the path , setback n failures are temporary ,

so just keep climbing , sooner or later , u will be there ...

good luck n good trade

Maheswara is right. Let me add by saying it's not enough to "hope." Your goal is your driving force, but like a plane corrects its path while on autopilot you must take action when you vere off course. Learn from the mistakes. Most traders at your stage are struggling because they don't know how to deal with the inevitable randomness that markets bring and often get stopped out or take smaller profits than they should. Then they think they can "predict" their way out of randomness by using market timing techniques taught by technical analysis experts (no offense intended).

Your most powerful ally now is common sense. There are things that you have control over and things that you don't. You can't control randomness but you can control the size of your stops and the amount of leverage you are using. Hopefully by now everyone in this forum knows that there is no holy grail, but your method should be based on how the market works, not how to interpret the market. Let me explain this different: There is a difference between drawing a trendline and saying the market will continue to go up compared to if you see that price has had recent strength, but cannot find a stimulus to break above the next level of resistance. The latter tells something about sentiment and the capacity of the market to move price in the present. (I'm just using tech. analysis as an example because most are familiar with it although I prefer fundamental and behavioral analysis in conjunction with TA)

In a relatively efficient market that is a zero-sum game like currencies and commodities, the market's job is to screw the most participants (put bluntly). This means that to profit you need to know something about how the market works as opposed to just what it has been doing.

I hope you guys make it to the final stage. Write down and keep track of your AHA moments. This is when you know you are progressing!

All the best for your trading,

Kris Matthews

Thank you, you have talking all about the trader, i think i am at step three, how along time it takes me to step on to step 4..... thank you, patient can be rewarded.

And yet you standardize higher timeframes, and short spans of lower timeframes, with behavioral finance interpretation of news. Why can't the lower timeframes not plainly involved with news also be psychologically explained in a way we do not yet understand?

This is the most accurate thread yet, on FF!

I'm at Step 4 at the moment. Not in any rush to make it to Step 5 as I personally believe I have a still a lot to learn. BTW, so true about using something as simple as an SMA or Trendline in helping to become a profitable trader. I went through Step 3 before realising it couldn't get any easier using the most "simplest" tools of the trade.