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Evolution of A Trader

The document describes the typical evolution of a trader from beginner to successful professional. It outlines 38 steps, starting with accumulating information and losing money in early trading attempts. Through experience, developing a methodology, establishing rules-based trading, and continual self-improvement, the trader eventually masters discipline and gains consistency in profits. Along the way, overconfidence is repeatedly humbled by the market until trading becomes a refined, rules-driven process that allows the achievement of financial goals.

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Ti Ne
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446 views2 pages

Evolution of A Trader

The document describes the typical evolution of a trader from beginner to successful professional. It outlines 38 steps, starting with accumulating information and losing money in early trading attempts. Through experience, developing a methodology, establishing rules-based trading, and continual self-improvement, the trader eventually masters discipline and gains consistency in profits. Along the way, overconfidence is repeatedly humbled by the market until trading becomes a refined, rules-driven process that allows the achievement of financial goals.

Uploaded by

Ti Ne
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Evolution of a Trader

author unknown... this was forwarded to me by a friend in 2005.

1. We accumulate information - buying books, going to seminars and researching.


2. We begin to trade with our ‘new’ knowledge.
3. We consistently ‘donate’ and then realize we may need more knowledge or
information.
4. We accumulate more information.
5. We switch the markets we are currently following.
6. We go back into the market and trade with our ‘updated’ knowledge.
7. We get ‘beat up’ again and begin to lose some of our confidence. Fear starts
setting in.
8. We start to listen to ‘outside news’ and to other traders.
9. We go back into the market and continue to ‘donate’.
10. We switch markets again.
11. We search for more information.
12. We go back into the market and start to see a little progress.
13. We get ‘over-confident’ and the market humbles us.
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 REALISE WORK IS


INVOLVED.

15. We get serious and start concentrating on learning a ‘real’ methodology.


16. We trade our methodology with some success, but realize that something is
missing.
17. We begin to understand the need for having rules to apply our methodology.
18. We take a sabbatical from trading to develop and research our trading rules.
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.
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 successful trading.
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.
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.
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 about ourselves.
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.
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 trading 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.

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