Development phases of a Trader

On the way to become an operator who can live on their income markets who choose to do this activity their profession multitude of obstacles will be found, which is why that should fill the bag of safe conduct to enable it to progress properly without doom them to pass bill.

In addition to equip itself with a Trading Plan – and tried another very important element to consider will be your development as a trader in this blog-. The process of getting to becoming anything in an excellent operator is based on skills development and training continuously throughout professional life.

In a changing market environment and constantly evolving at high speed, the trader should forget that the methods and systems using work life and should thoroughly prepare to live with it. Depending on the capacity and discipline of each this can be done individually (self – training) with books, blogs, webinars … or seek help (assisted training) mentoring programs or training, relying on expert groups traders, .

In the end it is provided with a program of systematic learning that focalize in pattern recognition, market movements in different time frames, relations between markets, the search for effective trading ideas and risk management.

This development goes through different stages:

1. New Learning

At this stage the trader learns, seeks and recognizes the behavior and characteristics of the market in a timeframe, the relationship with other markets, valid strategies. To do this you must test and verify ( back-testing ) with a multiplicity of them (markets, strategies, timeframes …) that fit the way they operate and to provide benefits and trust.

2. Competition

At this stage the trader must achieve financial balance ( break- even ) in operations (covering costs). From the models developed in the previous stage of learning or acquired using the techniques and systems successful traders.

3. Experience

At this stage the trader should profit from recurring. The level will reach depends on different aspects: talent (innate quality), skills and knowledge (you learn), niche (you choose) and multiplier effects (eg through interaction with successful traders and studying their better practices).

4. Adapting to new situations

Because of the evolution and permanent change of market behavior for adapartarse to new situations, the trader must periodically reinvent itself and repeat the process (step 1 to 3). For this to be feasible it is essential to respect the following rules:

• Apply a defensive tactic as conditions change (risk reduction, position) in order not to squander the capital.

• Saving money during periods of benefits, to overcome difficulties in the new adaptation processes.

Live markets ( trading for a living ) like any other profession that is intended to perform at the highest level of excellence requires a periodic process of adaptation to the environment and circumstances. To do this, it will be essential that the trader develop the ability to learn to learn (alone or assisted) and whose outcome will depend on his career.

Note : Some of the ideas are the result of the reflections of Dr. Brett Steenbarger, psychologist and coacher of traders.

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