4 Levels to Be Passed to Become a Successful Forex Trader

Level 1: Baby (Enthusiastic Beginner)

At this stage, traders are usually in a period of enthusiasm for the first time to know forex. Usually traders at this stage is a new trader who knows forex, whether it’s from the internet, books, seminar workshops or from friends. In this stage, traders will assume that trading can bring tremendous profits and they will assume they can get rich quick from forex. All things about forex look so beautiful at this beginner stage. Things that often do not occur to the traders at this stage is a high risk factor of forex.

Many of the traders at this stage will start experimenting with trading. At that time, they will estimate price movements, in the absence of clear directions or rules of their trading, leading to speculation (gambling).

Some of the lucky ones will be able to make big profits in some trades. They start thinking that making money in forex is very easy. At that point, sometimes they will start doubling the position when entering the market and playing hajar while there is capital. Traders who suffer losses tend to double positions in hopes of turning back. But what happens is the greater the loss, until finally Margin Call.

And this can happen repeatedly and subconsciously can become habit and trading rules for a trader.

This stage will generally last for 1-6 months.

Level 2: Child (System and Indicator Finder)

At this stage, traders will begin to realize that forex trading is not as easy as they imagine. This is where they feel that their knowledge of forex is not enough. Next, they will start reading ebooks, websites, books as well as visiting forex forums. At this stage the trader will become a system hunter, indicator and robot. Traders will try to find holy grail (who do not know about the Holy Grail, read my article about Mental Holy Grail that makes forex trader can not succeed) and assume that which determines the success of a trader is because there is a magic system that can generate profits.

This is where traders begin to fill the full chart with various indicators and start to be familiar with terms like Moving Average, Support & Resistance, Fibonacci, Stochastic, MACD, RSI, etc. At this stage, traders will continue to move from one system to another while continuing to search for other trading systems. Traders will learn about how best rule to enter position based on indicator. Not infrequently you even buy some trading signal service from several websites. After dozens or hundreds of times trying different systems and nothing works, those who give up will say “Forex Trading is not for me”.

This stage is the stage that most spend a lot of money and time. This stage can last for 3 months to years. This level is the most important before you can go to the next level and there are only less than 30% who made it through this stage in the world of forex. If you are a stubborn person and feel you know everything, then you can never be a successful forex trader.

Level 3: Teen (Trader Starting Own Trading System)

At this stage, the trader already has trading rules and is consistent with his trading rules. Traders are starting to realize that there is no such thing as holy grail in forex. Therefore they begin to use rules that match their own psychology and trading style. Traders at this stage are also less likely to use indicators and re-use basic indicators such as moving averages on their trading systems. Most traders at this level also are not in a position based on emotion because they know they can not predict the market.

Those who are in this stage also no longer calculate the rate of return based on trades per tradenya, but calculate it in a period such as weekly or monthly. Here traders have started to realize that trading is about consistency and discipline. There are times when traders at this stage still like to impose a position even though it is not in accordance with the trading rules. Traders also like to watch charts for hours every day just to wait for floating plus or minus.

If you are already in this stage, you are close to the stage where you will be able to trade for living.

Level 4: Adult (A Successful Forex Trader and Trade for Living)

At this stage, traders will enter positions based on the system they use. They will do the cut loss as easy as they do take profit (really without emotion). The feeling of gaining 200 pips will be the same as when you get 10 pips. At this stage they also no longer enter a position that does not follow the trading rules. Traders here also do not see too many charts and only trade on certain hours only. They started to enjoy trade as a job.

Traders will begin to feel what’s going on in the market and know exactly what to do. At this stage, you will feel that trading is something that just ordinary even tend to be boring.

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