Novice- over trading, no realization of the hidden risks, no or poor records, watching/trading too many things eg comodities,many FX pairs, equities
Novice step 2, poor time managment, buying lots of books, still no reliable records,start writing a trading plan, lack of paitence - not waiting for the trade to come to me, no idea when or why to be agressive for entries, happier to take a small loss than get a decent proffit. Still get the odd loss that is too big- worse than the money lost is the mental damage.
Somewhere between novice step 2 and intermediate start to learn some patience, write some more trading plans, stops in better placement but still not good enough, start to realize that only need to trade between 2 and 5 things- this could be gold, AUD/USD, EUR/USD GBP/USD know more about a little rather than a little about more. Learn about when the spreads are better and worse. Start to get to know about something of value about news and time management, what to trade and when, some but not a lot of understanding for multiple time frame charts, you know their relationship but just can't quite understand or see it most of the time, Start to identify one's trading style and worked out most of the books are waste of money and contradictory mainly because just not quite enough knowledge to full understand what is in the book and can only follow one style. Keep wondering when the intermediate door into the room is going to open, spend some time wondering if you are in the intermediate room or not.
Intermediate level- eventually multiple time frame charts start to show a picture most of the time- sometime easy sometimes not.
Learn about the rules for guarenteed stops and how the market Really works and what can happen. Get to know about wash and rinses, stop hunts, stops posistions being sold on etc
By now you will realise that you are finally just in the intermediate room and you know it, you also know that it is a very long way to the semi-pro door.
The charts are getting back to only a couple of indicators, used plenty in the past looking for the holy grail that wasn't in the books either.
Worked out that records are a necisity to go forward. write another trading plan that makes some sence and shows some knowledge. Get some nice little profits in, even get a pip or 2 profit at times when worked out you should be long instead of short.
new trading plan that does have some good potiential given a tweak here and there. Know what road you're on and why. Bad trades getting less, mistakes getting less and smaller. Ability to wait for a trade to come to me instead of chasing it growing. Know when to be flat (no posistion)
getting some good value for the time spent at the computer got the records sorted out now trades waiting/setting up in progress and completed
Starting to feel calmer and more comfortable with it all. Trading account starting to grow each month usually. Starting to really enjoy the journey now knowing the best is yet to come.
The account managers that I have spoke to over time at GFT all tell me that their best traders think it's a bad day if they spend more than 2 hours trading a day.
