There are four stages of a trader
and based on my experience,
every trader is going
through these four stages
before becoming a highly
profitable trader.
A lot of people start out trading
not knowing what they are doing,
not having a system, not
knowing how to limit their risk.
This is how they lose a lot of
money. That is stage number one.
And it's often caused by
ignorance, because these days it
is so easy to become a trader.
How do you become a trader?
You open an account and push a few
buttons and this is how you buy
and sell.
This is where traders lose
a lot of money.
The important thing is, once you
realize that you are making
a mistake, you will realize
that you need a trading system.
Once you have a trading
system you typically move
into stage number two,
which is losing a
little bit of money.
But let's talk about a trading
system first.
A trading system basically does
the following three things.
First, it tells you exactly
what to trade.
Secondly, it tells you
when to enter a trade,
when to buy or
sell if you're betting on a falling
market.
Number three, it tells you when to
exit a trade.
There's two ways to exit, it's
either with a profit, right?
I mean, this is the idea, or with
a loss. So it is very important
that you have a trading system.
If you need a trading system and you
would like to know how I personally
trade go to mytradingroutine.com
this
is where I have a quick video for
you that shows you my trading
system, the one that I personally
use. So stage number two
is losing a little bit of
money and this is where most
traders are giving up.
But keep this in mind, of course
every trader wants to make
a lot of money, right?
But after losing a lot of
money, typically stage
number two is losing
a little bit of money.
And if you can do this, trust
me, if you lose a little
bit it's part of your
journey as a trader, let
me assure this.
I mean, I have been in this phase
for a few months,
but trust me, you're doing better
than the majority of traders.
At this point when you are losing a
little bit of money, do not
give up because now
you're so close
to stage number three.
And what is stage number three?
In stage number three you are making
a little bit of money.
Now you see, stage 2 and 3
is typically where your account
does not move a whole lot.
It goes up a little bit, it goes
down a little bit.
But even if it just goes
up a little bit, even
if it just goes from $10,000
to
$10,500, once you are in
stage number three where you make a
little bit of money your main
goal is to focus on
consistency.
When you can consistently make
small profits,
then you will quickly go
into stage four which is making
a lot of money.
Why is that?
Because when you are consistently
profitable you can
add money management to the
mix which is like adding fuel
to the fire, which is like the turbo
boost. However, it is
important that you are in stage
three, that you are making some
money before you
add money management.
I'm curious what stage you
are in, and trust me being
in stage number two and three
can be the most frustrating
stage.
But when you are make sure that
you are sticking with what you are
doing, based on my experience
you are so close
to making a lot of money.
So, let me repeat the stages one
more time. Stage number one,
losing a lot of
money. Stage number two,
losing a little bit of
money.
Stage number three, making
a little bit of money.
And stage number four,
making a lot of money.
And really, trust me, every
trader that I know
is going through these
four stages.
And the worst thing that you can do
is giving up when you are in stage
number two or number three
because usually it is just
a matter of weeks, you're so
close to being in stage
number four.
Was this helpful?
If so, please like this
video and leave a comment
and let me know what stage
you are in right now.
Hopefully we will see in these
comments that most traders are
in 2 and 3 and I
really hope that some of you are
already on stage four making
a lot of money.