EVOLUTION OF A TRADER

EVOLUTION OF A TRADER

EVOLUTION OF A TRADER Every Trader goes through the following stages of evolution:1) Basic market reading - is the market going up or down? Note, that at this stage, very few people think of the third possibility.....that the market could be going sideways2) Setting targets for the envisaged move - During this stage the person is happy if the market moves in the envisaged direction and even if the market comes just close to the target but misses it3) Getting to know all the scores and scores of Technical Indicators and tools, thinking that knowing the tools is the secret of successful trading.During this period, the person is focussed on "being right", the mentality is "me against the market", or even, "my forecast is better than yours". The person trades during this period, experiencing both profits and losses, but consistent profits elude her. She is happy every time there is a profit, no matter if it be small and tends to forget about the lossesSlowly, the Trader moves onto the next plane of evolution, wherein:1) She starts to think about various possible scenarios....and starts to think in terms of "If-Then-Else"2) She starts to think in terms of Probability....what are the chances of the IF or the THEN or the ELSE happening3) Starts to think in terms of Risk-RewardHaving mastered this higher plane, the Trader can then move on to the next plane1) Thinking in terms of strategy2) Managing multiple positionsAll of this takes time, TWO years at the minimum. During this period, one should trade as small as one can, alternating one month of Real trades with one month of Paper trades and so on.Learning to trade FX is not the same as learning to ride a bicycle or learning how to swim. Please think about it.If you have any queries, comments, problems or suggestions, please feel free to write/ call at our e-mail and phone numbers below.And, please take a look at our forex trading signals by clicking on "FX Thoughts for the Day"Learn to trade with an Online Trading Simulator featuring live quotes and charts