Forex. The stages of becoming a trader
Some experience of communicating with the traders of currency markets allows deducing the following common denominator. Namely, Forex trading for beginners passes through several stages. And none of the stages can be skipped. It simply does not happen.
If you think that you are the smartest of all, that you will immediately start to make a steady profit - without searching, without doubts, without falling down and without a star disease, then we can safely say only one thing. All the "childhood diseases" inherent in Forex beginners, sooner or later, will catch up with you. And the thunder of disappointment can significantly damage the cloudless sky of hope.
Forex trading does not forgive neglect. And the earlier beginners learn this axiom, the more successful their further way will be. Though, it is not only newcomers that get slapped by the market. And falling from a great height is notoriously painful.
So here's the road map to the big road: 1. STAGE FIRST. This is the euphoric stage. Forex beginners have just become aware of the existence of the Forex market, of the very possibility to make money without leaving home, without working, as they say, "for an uncle", of the possibility to quickly become free and independent. You are full of energy and enthusiasm. You have even made some "demo" trades. You have made a handsome profit. How easy it is, you think, carrying your money on the "real".
2. STAGE TWO. You begin to work on the real, and suddenly it turns out that all this is not as easy as it seemed at first glance. Forex trading is entirely loss-making. You lose for some reason, get angry and lose again. Gradually, Forex beginners come to realise that they need to learn. You have to learn the profession of a real trader! - is necessary, as any other profession.
3. STAGE THREE. You study hard. You attend or purchase various courses, seminars, become a member of numerous thematic forums, buy a lot of books and read.
4. STAGE FOUR. You again go to the "real". Again, at the beginning you win, and then you start to lose. By the way, at this stage, most drop out of the "game". Only the most ambitious and optimistic remain. And then usually beginners realize that knowledge is knowledge (it is necessary), but that is not the most important thing in Forex. A successful trading is 80 percent of psychology and 20 percent of money management. If reading these words you disagree with them, it means you are not yet ready for professional trading.
5. STEP FIVE. You work on your psychology, you observe money management, your strategy of earnings on Forex gives not less than 40 percent of correct entries. That is, you begin to work as an adult. And the moment comes when you think that you can do anything. "Star disease" takes you by surprise at the most unexpected moment, and everything crumbles. Or almost everything.
6. STAGE SIX. This is the comeback phase. After the inevitable break, the psychological crisis caused by failure, you come back even more hardened and stronger. You now know everything, and are ready for anything. You will not let it happen again.