Stages of becoming a Forex trader

Anyone Trader during his training to trade in the market goes through several stages. Some people, due to circumstances, are lucky and some stages are skipped. Others may stagnate for months. There are many points of view on this issue, and here is one of them. Many experienced traders will be interested to compare their Forex trading and these stages.

Amateur trader or novice in Forex

Forex currency market seems like a mystery to him. The amateur is sure that there are simple techniques which, if adopted, will allow him to make a lot of money on the market. Often, the amateur blindly follows the instructions of more experienced (but not always successful) traders and analysts. Subscribes to all sorts of newsletters with direct indications of the opening and closing prices of a trading position. He believes that there are unknown "They" who mysteriously influence the behavior of the trading price. He excitedly watches every point of profit (loss). He tries to win back right after closing a losing trade. When the price has gone against the open trade position, the amateur often uses a "flip". Evaluating news on any trading pair as "good", he believes in its growth. The beginner often makes trades. After receiving the first profit he immediately makes forecasts about the earnings for the month, year, etc. An amateur can blame anyone for his failures, but he rarely remembers himself.

2. experienced amateur or beginner with experience

The experienced amateur no longer seeks to make big trades. He understands the principles of trading pullbacks and "market noise. "They" still exist, but they no longer scare him. The experienced amateur begins to use stop-losses more and more often, although he does not always determine their size correctly. He is still looking for support and tips from analystsBut he is more choosy (both in the analysts themselves and in the application of their advice). He begins to make sure that Forex trading is a job, not a game. He studies trading approaches and strategiessometimes tries to develop something of their own on their basis.

3. trader

At the third stage of formation our beginner can already call himself a trader. He understands that the reaction of traders is a very complex thing. He is more skeptical of analysts and news. The trader studies historical data very carefully, as well as fundamental and technical analysis. "They" no longer exist, but there is the market and it takes everything into account. The trader knows to go with the market rather than fight it. There is a trading strategy (sometimes several), which he successfully uses. Setting a trade order does not take much of his labor and time. When the market changes, he tries to trade according to the former (tested by him) trading patterns and gets a series of losses, from which he loses confidence in himself for some time.

4. Professional Forex trader

Professional Trader can anticipate most trading events. If the market behaves unpredictably, he immediately closes a trading position. He is absolutely confident in his ability to make money on the currency market. The result of a trade deal practically does not affect his emotional state. A professional first assesses trade risks, and then the possible trading profits. He analyzes the news on his own, checking only with the opinion of analysts. The number of trades depends on market activity, not on the trader's desire. Sometimes a professional has losses more than usual, but treats it calmly. He remembers many market situations, both usual and not, easily compares the current trading situation with past experience.