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Five Stages of a Self-taught Forex Trader

by Josh Biggs in Finance on 19th October 2020

Most of the time, traders try to predict the price movements of currency pairs and profits from the opening and closing value of their trades. When the traders see the price is high, they sell the shares. When they see the price is low, they buy the shares. If you can be taught by yourself, then, you will get a better understanding of the market. Many professional traders are self-taught and they are staying with consistently profitable trades. There are some stages of the self-taught process which will help you to prepare yourself for the battlefield.

Unpremeditated inability

This is the beginning stage. In this stage, the traders have general knowledge about the market. They are not aware of how much they need to learn to be a professional trader. In this stage, when they see a winning streak, they become over-confident which causes a great loss. They are not aware of the risk management issue. They take huge leverage. Because of over-confidence, they do more trade than what they to do. This lasts for few weeks.

Responsive Inability

In this stage, you have already understood that trading is not easy. The market can be changed instantly. You need to be up to date. This is important to know about the use of tools and indicators. The different types of indicators can be used in particular sectors. This is a very crucial stage. In this stage, many fresher lose their hope, and leave the market in the middle of the race. This lasts for a year. The elite Singaporean traders always suggest to start with the simple indicators. Visit https://www.home.saxo/en-sg/products/etf to know more about indicators and ETF trading so that you do better in real market.

Eureka Moment

After facing the failure, you understand that you cannot control the market. The good thing is you can control your emotion which can help you to make a wise decision. In this time, you understand that ups and downs are common in the market, and one losing streak cannot determine your future.  Your realization forces you to make your own strategy. You work hard for being professional. This time, you use your realization, and your previous knowledge to make a plan for execution in the market. This can be your life-changing moment in the market.

Responsive Ability

In this stage, you have made a stable position in the market. You are not now worried about making loss. You are trying to execute your plan properly. You know how to manage the risk-reward issue. In this stage, the use of indicators, and tools are known to you. Your plan is appropriate for your trading. In this stage, you know how to manage tweak and fine tune the trading system. This will help you to make more profits than your expenditure. Here, you think about the progressive trading. You try to follow the successful one and observe the market properly. The importance of keeping a record of the previous trade is now known to you. You know how to learn from previous mistakes.

Unpremeditated Ability

In this stage, you have become a member of professional traders. You are not excited about the loss and profit. Emotions cannot control you. Your greediness cannot able to influence your decision. You are not doing more trade at this stage. You are trading according to your plan. You can able to preserve your capital. You are doing trading with good profits. This is the final stage where you know about the discrete points of trading.

 You already understand that the process of self-taught is not easy. You keep patience. Work hard and do not lose your hope. You need to be self-controlled. If you lose hope and leave the trade in the middle of your trading life, you cannot able to be successful. Remember that stage one and two is very crucial. If you can survive in these stages, you can be a successful one in Forex market.

Categories: Finance

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