I have seen the list below several times throughout my journey. I will repost it here with my commentary. I must say that this is not my list and I have no idea who the author is.
38 steps to becoming a successful trader
They are as follows:
1. We accumulate information – buying books, going to seminars and
researching. (This is usually the starting point. We have seen some commercial or advertisement promising millions overnight. We see pictures of yachts, sports cars, huge mansions. We hear ‘testimonials’. We are all excited about making more money in a day than we have made in a lifetime.)
2. We begin to trade with our ‘new’ knowledge.
3. We consistently ‘donate’ and then realize we may need more
knowledge or information. (At this point, we are devistated. It happens every day in the forex industry. We are sold a fake bill of goods about all this prosperity only to realize later that everything sold online is fake, It is mrketers packaging up some nonsense and then selling this info to other marketers who sell it to you. We still know that it is possible and are still ready to try our shot at this.)
4. We accumulate more information.
5. We switch the commodities we are currently following.
6. We go back into the market and trade with our ‘updated’ knowledge.(Ok now we KNOW THAAT WE KNOW how to trade. We put even more money into it and go full force into our new update journey. We are so excited now because we got rid of the old useless info.)
7. We get ‘beat up’ again and begin to lose some of our confidence.
Fear starts setting in. (At this point, we are filled with thoughts like, “I will never make it. This is just bull shit. Trading is just gambling.)
8. We start to listen to ‘outside news’ and to other traders. ( We try every system and listen to every guru out there and hope that the next one will be the one with all the ‘REAL’ knowledge.)
9. We go back into the market and continue to ‘donate’.
10. We switch commodities again.
11. We search for more information.
12. We go back into the market and start to see a little progress. (OK now we have it. we are seeing consistent returns over the course of a week or two. Maybe that progress is 1% per day for 2 solid weeks.)
13. We get ‘over-confident’ and the market humbles us. ( We just lost all of our gains over the past 2 weeks and lost another 50% in one day!)
14. We start to understand that trading successfully is going to
take more time and more knowledge than we anticipated.
MOST PEOPLE WILL GIVE UP AT THIS POINT,
AS THEY REALIZE WORK IS INVOLVED.
15. We get serious and start concentrating on learning a ‘real’
methodology. (At this point, we look for only the biggest and the baddest gurus out there – the ones that charge thousands for training. Surely if they charge thousands and are at all the shows, they must be for real.)
16. We trade our methodology with some success, but realize that
something is missing. (What we see is that each one of the gurus have just a small piece of the puzzle. No one man has all the answers. We begin to use stop losses in our trading.)
17. We begin to understand the need for having rules to apply our
18. We take a sabbatical from trading to develop and research our
trading rules. (We now stop trading for 6 months. But we cant shake it. We are always thinking about trading and the possibilities. We know there is a way.)
19. We start trading again, this time with rules and find some
success, but over all we still hesitate when it comes time to
execute. (We find a trading style that suits our personality. We see proof that it works. We know others are making money by trading this way. When it comes time to pull the trigger, We are scared to death.)
20. We add, subtract and modify rules as we see a need to be more
proficient with our rules.
21. We feel we are very close to crossing that threshold of
22. We start to take responsibility for our trading results as we
understand that our success is in us, not the methodology.
23. We continue to trade and become more proficient with our
methodology and our rules.
24. As we trade we still have a tendency to violate our rules and our
results are still erratic.
25. We know we are close.
26. We go back and research our rules.
27. We build the confidence in our rules and go back into the market
and trade.(At this point, we know that the accumulation of all knowledge has led us to this point, even if 99% of that knowledge is fake. The fake knowledge that we have helps us distinguish what is real.)
28. Our trading results are getting better, but we are still
hesitating in executing our rules.
29. We now see the importance of following our rules as we see the
results of our trades when we don’t follow the rules.(At this point, we go back and look at our results. We find that our success is great and our huge losers are the ones where we deviated from the plan.)
30. We begin to see that our lack of success is within us (a lack of
discipline in following the rules because of some kind of fear)
and we begin to work on knowing ourselves better.
31. We continue to trade and the market teaches us more and more
32. We master our methodology and our trading rules.
33. We begin to consistently make money.
34. We get a little over-confident and the market humbles us.(At this point, we are so confident that we begin to double our lot size every couple of days and on the day we doubled, we had a loser and it took out all the previous day gains. It hurts.)
35. We continue to learn our lessons.
36. We stop thinking and allow our rules to trade for us (trading becomes boring, but successful) and our account
continues to grow as we increase our contract size.
37. We are making more money than we ever dreamed possible.
38. We go on with our lives and accomplish many of the goals we had
always dreamed of.