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Four Stages Of Awareness in Trading

  
  Education
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awareness

Have you ever noticed that awareness is the first step toward future growth? If you
want to improve in any area, read on below to understand the four stages of
awareness as they relate to good trading.

The learning curve in any endeavor involves four stages:

Unconscious incompetence (where the trader has no idea how much he doesn’t
know about trading)
Conscious incompetence (where the traders realizes after initial losses that he has a
lot to learn)
Conscious competence (where the trader has developed and is now doing well as
long as he works his system and its rules)
Unconscious competence (where the trader has mastered the rules and also knows
when to break the rules as conditions change, in a complete flow with the markets
based on great experience)

What does NOT being a hero look like in trading? Some possibilities

  
  Education
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  • Not trying to catch the absolute top or bottom
  • Not “fighting the tide” because you are “right”
  • Being agnostic and opportunistic deep in your bones
  • Changing your stance immediately if price action fails to confirm
  • Never entering without price confirmation in the first place
  • Looking for max risk-adjusted odds of profit, not max glory

Not being a hero means less glory, but ultimate far more profit, because if you have the patience to wait for the (non-heroic) optimal moment — which is almost never the initial turning point, which heroes love to call out — you can more effectively scale up and put leverage to work in your favor.

Not being a hero in respect to adverse price action — dumping positions quickly that aren’t working out as planned — also lets you safely deploy more size in general, which in turn allows for more effective pyramiding and greater profits from the very same move the hero took with less size (because he got chewed up so many times trying to catch the damn turn).

And of course, there are the invaluable merits of pure survival and never going down with the ship (as heroes all too often do)…

Count down 3, 2, 1 to be a Trader

  
  Education
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3) Focus on the psychology and mental skills that are necessary to succeed in the market.  Learn to read the market charts in terms of the pscychology of the other traders.

2) Learn about risk control in depth.  What this really means, options available to you, how you can marry it up with your financial objectives in the market place etc.

1) Only when you have the above dialled in should you investigate ways of putting trades on in the most advantageous positions to generate the returns you are looking for.

I think if people were to count down 3, 2, 1 there would be many more successful traders. 

Assessing Your level of Impatience

  
  Education
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  • Do u wait for your Predetermined signal to exit a trade ?
  • Do u enter trades early with insufficient evidence ?
  • Do u change your trading plan after the market starts trading ?
  • Can u wait for the market to fill your at your price ?
  • Do u feel rushed or hurried as you trade ?
  • Do u sometimes trade just to have something to do ?
  • How does this help  or hurt your trading ?
  • One way to slow things down is to write each days’s trading plan in advance.
  • Set your firm intention to follow your plan.
  • At the first violation of the trading plan ,take a break ,and recommit to a steady application of the plan.

SUPPORTIVE BELIEFS :

  • Time is on my side
  • I have all the time I need to accomplish what I want.
  • The world is an abundant place.
  • The market is rich source of unending opportunity
  • I can be in alignment with the quiet part of me even as I watch the market.
  • The Market moves in its own rhythm ,and I can move fast or slow depending on it’s pace.
  • A person is able to create wealth slowly through trading.
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