Everybody enters in to trading, thinking that it is easy to make money in share market. They never think to make easy money, one has to be a consistent trader and it takes time.
The phases of a trader are
Newbie – no knowledge, lot of expectations
Senior newbie – Gain knowledge, less expectations.
Intermediate – Unable to manage emotions during trading, good knowledge about trading.
Expert – Good emotional & trade management skills.
In these 4 stages, most people get stuck in intermediate phase. Why they get stuck there? How to cross that phase?
This intermediate phase is important as it decides whether a person will become a consistent trader or not. The longer a person stays in this phase, the chances of him becoming a profitable trader reduces. Why ? Because the person will be repeating the same mistakes again & again creating it as a habit strengthening the neural pathways in brain and make it as a habit.
People who do revenge trading, impulsive trading, over trading for many years enter in to this category. Can you avoid it? No. Every trader undergoes this phase. And in this phase only he learns the way to become a consistent trader.
Do you have self destructive bad trading habits?
What factors decide the duration of the intermediate phase?
Exercise : Note down your self destructing trading habits. Review your trades to know it.
(To be continued next week...)