There are various stages in the development and the career of a trader.
Because of this, I think that there are various stages in a trader’s growth and professional life. In the beginning, you don’t know anything and you don’t make any money. Then you become a good trader and generate income, and then you become rich.
How do traders understand if they’re trapped in the “new trader” stage of the game?
People who are new to trading should not think they are more advanced than they are. They may be risking too much money on each trade and trading too large, which could make them more emotional when they trade, which could make them less stable. There are a lot of things we need to know about where we are in our trading journey.
Several times, new traders should be learning and not trading. There reaches a moment where the new trader can no longer learn and should start trading small to learn about the real feelings up when their real money is on the line, so they can understand them better.
10 signs that you might still be a new trader.
- There is a lot of talk about risk analysis and trader psychology, but new traders don’t understand what the big deal is about. They don’t need all that.
- In the beginning, new traders think there is a miracle trading technique that always works.
- Inexperienced traders don’t know that the best traders lose a lot of money. They don’t know that the best traders lose months or even years. That rich traders always win.
- Inexperienced traders want to know exactly what is going up or down, so they look for recommendations instead of how to trade.
- Beginner traders give out recommendations to everyone, but good traders know that each person makes their own decisions and doesn’t give out tips.
- Inexperienced traders are focusing on that one big winning trade that they can go all-in on. Good traders try to trade good systems that they risk 1percent of their money on each time.
- Inexperienced traders think that bull markets are a sign of skill.
- They think luck is the same as skill.
- New traders want help, and good traders want strong systems.
- It takes new traders a long time to figure out who they are and what they do, but good traders know who they are and what they do.
In the last, I will say that first identify which type of trader you are and then take steps accordingly in career of a trader. Also, Identify your best robust systems of trading.