Day Trader : Step by step developmental stages…..

By | December 20, 2017

Day Trader : Step by step developmental stages…..
      If you do modelling of world’s most consistently successful day traders , you will come to realization that – to evolve as consistently successful day traders , you have to go through developmental stages which is as follows :
Stage I : Consistently loser trader
Stage II : Break Even Trader
Stage III : Consistently successful trader

Let me explain each and every stage in details :

Stage I : Consistently loser trader
     Once you make decision to become trader , then you had already enter into first stage.
     You start your journey from learning about market and trading. (Plz note that – market and trading in market are two different concepts). In era of internet , most of beginners start learning from internet. After going through few websites and videos , they think that they had learn about market & trading.
     Former inventor of stock market business and later developer at global exchanges , made the nature of trading business such lucrative so that normal beginner will easily come under lust emotions and falls into trap.
     Without proper knowledge you starts trading on your hard earned real money. This is starting phase of your Cycle of frustration and diss-appointment. This cycle continues day after days , week after week , month after month and may be year after year….
      According to broking industry experts , average life of day trader is about six months….because of improper and insufficient knowledge , novice traders account wipes out.

During this stage , to improve result in trading , Novice trader tries many ways like :
1.Changing broker
2.Changing Charting platform
3.Changing tips/signal provider
4.Chaging trading strategies
5.Changing money management strategies….

But non of above works….90% traders quits trading business in this phase….remaining 10% goes into next phase…

Stage II : Break Even Trader
    At this stage , trader realizes importance of psychology in trading business.
    He stops searching for holy grail trading system.
In this stage of evolution traders  realizes :
Trading is not game of perfection , it is game of probability….
There is random distribution between profit and loss trades over series of trades…
There is random distribution between profit day’s and loss day’s…
Once he realize above concept at intellectual level then he try to accept it at emotional level.
Then he try to find out way to implement that concept at practical level for his financial benefit…..
In this stage , trader is trading but he neither makes money nor loses his capital….he remains at breakeven point….

Stage III : Consistently successful trader
     Under guidance of proper trainer , traders realizes :
Day trading is all about self discipline and self discovery….Not forcing anything on market….
     It doesn’t matter in which market you are trading (either equity or commodity or currency) , it doesn’t matter what time frame you are using (either weekly or daily or 5 minutes or 1 minutes)…. What matter is How much you have understand about yourself ? and How much you have understand about market?
     Understanding about yourself and market , and implementing that intellectual & emotional understanding about yourself and market at practical level for your financial benefit is more important than technical analysis.
    To learn trading , first learn to play with your emotions…..Once you learn that skill , then market will teach you How to play with other people’s emotions.
     To become CONSISTENTLY successful day trader is journey….Not a destination….It is process ….not a event….
     Every human being born with natural potential to become CONSISTENTLY successful day traders…..But you will be able to convert that potential into performance only when you LOVE & LIKE trading process….

Leave a Reply

Your email address will not be published. Required fields are marked *