Journey of a New Forex Trader to Success

There are generally six stages needed to follow for developing a trader. Some of them are mentioned below:
First Stage: Clueless Dealer
It is the initial stage when one enters trading. One might have selected a book on the technical analysis, heard of the day trader which makes millions or become lucky enough in the earlier investment of stock. After all, how difficult this can be? The finance sounds appealing and freedom to remain independent sounds to be attractive.
I didn’t mean to shatter anyone’s dream but who succeeded in dealing is minority. Nearly ninety to ninety five per cent of dealers lose cash. It is known as hard facts. During the initial stage, every dealer is optimistic. One opens a direct accessing brokerage account and Level II sound, bid/ask and the makers of the trading market making the trade sound like the hi-tech game. In realism, you have no clues. You will have to purchase market reverse and will short as trading market begins to meeting. Most of the deals are done in an emotional manner. One just purchase as the trading markets feel powerful without logical reason. You remain in an unconscious incompetence phase. One does not have any type of clue how mechanics and the psychology of deal works. What is the worst thing? You are not cautious about the thing that you do not realize. Most of the dealers will blow the whole account at this particular stage.
Second Stage: Rookie Trader
At this particular stage, you will lose sufficient money for realizing what one is doing is totally wrong. In simple words, one starts realizing that you do not realize. You will devour each book of trading available. One will study and buy technical analysis of the stock trends by Magee and Edwards thinking that cost patterns are Holy Grail. One will definitely memorize each technical pattern which man knows. You will also read things regarding ADX, the moving averages, pivot points, Fibonacci lines, Bollinger Bands, MACD, channels and many more. You will come across “help tab” on the data vendor for reading about each single technical indicator. You will plot on the charts and spend long hours searching for a pointer that works. One will be confident as you have easily found a technical indicator.
You will still continue losing money each day. You have the realization that the indicators lag and that each new dealer is possibly looking at the similar things. You will understand you are a sucker.
Third Stage: Developing Trader
You begin to realize amount of work needed and immense curve of learning that you should overcome for understanding the trading market. At this particular point, traders might find this to be overwhelming. Traders having string minds will push the motivation harder to begin the second knowledge spurt. Passion and hunger is in demand for clearing the particular stage. You will search for a reference online; join the mentor programs, seminars and chat rooms.
You realize the important elements for developing as a dealer. You will ask million questions and bug each professional dealer one meets. You will pass through thousand day dealing articles. You will begin paper trading, develop several strategies and various setups and explain the risk parameter for each deal. You will move on hunt for understanding to handle the psychological game. One will imagine each possibility on the deal before one takes it. This is an actual learning stage. One will try to create an edge in trading.
Fourth Stage: Determined Dealer
This is a stage in which one learns in specializing in specific trading market and methods of trading. Without realizing this, you have ultimately found the trading style after several hours of research and hard work. You stick to the method and you enhance it. You understand that one wants an edge whether it is the reading of tape or being the Fibonacci expert. The significant thing is you transform yourself into specialized dealer. You examine the methods and seem to effort. One gains marvelous knowledge about the market. You reflect on yourself and cannot assist but laugh at the foolishness.
Though one might not have made sufficient money by which they can call themselves a successful, you will be proud of accomplishments and journey. You realize that Holy Grail does not regard price patterns of technical indicators. You measure the danger before gains and place the strict management of money on all the trades. You cut short losses and study to scale on the winners. You begin accepting losing in the form of natural part of game. One takes high possibility deals that one has been tested and feels confident regarding the setups as one understands that dealing is game of possibilities. One’s psychological makeup altered from amateur mindset to the professional one.
Fifth step: Consistent Dealer
You depend on the trading method and begin taking deals in a systematic manner. You try aiming for consistency and meet the daily goals most often. You have actually reached a sensible stage of competence. You are totally aware of the weaknesses and strengths as a dealer. At certain times, one feels euphoric and there are times you will feel discomfort but is able to understand the psychological makeup for controlling emotional swings. Now you have the ability to trade for earning a living.
Sixth Step: Expert Dealer
In the final stage, you totally understand the trading market you are dealing with. Being involved regularly, you are cautious about important cost level. You understand the concept of trading market and have the ability to guess the direction of trading market a good time. You pat on yourself on the back and take gains when one feels euphoric. This is done as one understands euphoria is similar as the emotional dealing. You consult with other dealers and realize their development stage. Individuals begin asking for advice on trading, publish the book and have a certain method of trading representing you.
Taking deals come in a natural manner and you have the ability to come and go at precise cost levels depending on the tape. Rather than having the trading markets take the stop out, one exit when one realizes that they are incorrect. One keeps the head high but endure humble inside. Now, you have graduated school of hard knocks officially.
Making an entry into trading can be a bit difficult journey for several people. Trading is a tough career that one can select. If one enjoys challenge, one will definitely enjoy an accomplishment feeling. Dealing is nearly 30 per cent mechanical and about 170 per cent psychological. About 200% is needed for becoming a successful dealer.