Here are fourteen common steps on the path to profitable trading.
- You start trading with a lack of knowledge, not even knowing the right questions to ask. Your trades and results are random.
- You lose money and learn that every trade is not going to be profitable.
- You try to follow gurus thinking they can predict the future but learn that they do not have a crystal ball.
- You lose more money but start to learn that trading isn’t as easy as you though it would be.
- You start to educate yourself through quality trading books and courses.
- You have a little success and start to think you know something. You are confident before you are competent.
- Losses after you think you know something educate you.
- You start to learn you better trade your own plan and system and avoid being swept away with the herd.
- Your losses become smaller and smaller and your winning percentage and the size of your wins gets bigger.
- You learn trading is not about expectations, predictions, and opinions but about a positive expectancy system.
- You start getting to almost break even in your trading.
- You begin to learn that the majority of trading comes down to your own psychology and self discipline.
- Everything starts to make sense and fit together.
- You start to make money consistency over the long term.