This is the first stage when you start trading. You came in because you heard that you can make a lot of money by speculating in coins/stocks. I think that's why you entered the currency circle. Maybe it was a bull market when you entered this market, or you were lucky for a while and found that trading was easy to make money. You find it quite profitable to go in and out every day. Once the bear market comes, or you start to have bad luck, you lose money, and then you start trying to double it. Sometimes you win back, but more often, you find yourself losing more. Or someone told you to invest it in value, and finally found that there was only one tenth of the principal left.
2. I began to realize that trading to make money requires professional knowledge and can't be reckless.
Because you lost a lot of money in front of you, you began to reflect and realized that trading is a professional thing and you can't be so reckless. then
1. You start looking for a bunch of professional books to read, or search for something you think is useful online.
2. You begin to learn various indicators and techniques, such as waves, entanglement theory and so on.
3. You start to go to tradingview, Weibo, QQ Group and WeChat Group to find all kinds of so-called gods, worship them, want to listen to their market analysis/trading views, and hope to learn from them how to make profits in trading.
4. You start thinking about other people's "pending orders", or buy some so-called trading indicators of masters, and finally find that it is useless to you, and you still don't make money.
5. You start to look for some masters and try to find profitable trading methods from their courses.
In these processes, you will explode positions many times, lose money many times and despair many times, but if you don't give up, you will gradually begin to realize the essence of trading. At some point, you suddenly enter the third stage.
realize suddenly
At the end of the second stage, you begin to realize that either the trading system leads to different results (loss or profit) or the so-called technology does not determine whether you can make money, and then you have an epiphany. You begin to realize that even ordinary people can make money, as long as their mentality and fund management are correct. You begin to realize that the important thing is not skill, but Tao, so you start to read something about trading psychology and learn about Tao in trading. You begin to realize that no one can predict the market. You no longer pay attention to other people's views on the market. You become an independent person and trade according to your own trading logic. You start to believe that you can make money, stop hating risks and start to stop losses strictly. You don't pay attention to the transaction result of each transaction, but start to calculate the income on a monthly basis; You can start using leverage and money management correctly. ...
The first three stages should last at least 1~ 10 years. If no one gives directions or does not know how to reflect, many people will never reach the third stage, and at least 90% people who want to engage in trading will be brushed away in these three stages.
4. Recognize that trading can make money steadily.
Your trading logic/trading system tells you what to do. If you don't understand, do nothing. You can accept the loss and strictly stop the loss, or you can accept the profit and let the profit run on its own. You start to lose money and make money, but in general, you lose small money and make big money, not big money. Finally, you made money. You have been counted as an excellent trader, so people begin to call you a god, a teacher or something.
5. The most perfect trading realm
You have completed the transaction. Every day, you place an order/stop loss/increase position/take profit to the point of flowing water. Just like an old driver, you have been on the same road for more than ten years, and you can handle it with ease. You earned 100%, and you won't be more excited than 10%. You have taken this profit and loss for granted. You can control your emotions and become a real trader, a trader who can make a lot of money. You have become a real so-called XX teacher, and everyone wants to hear a few words from you and let you express your views.
You have honed your trading system with your heart, and your way has brought you the greatest benefit without increasing the risk. Now, you have an ability, intuition. You are no longer excited about trading, but in fact, you may feel a little bored, just like other jobs.
It takes patience, perseverance, perseverance and wisdom to reach this point. 2%, 1% at most.