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Mysticforex

38 Steps to Becoming a Trader

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I am new to trading and want to know more about it. I am planning to engage in trading so what's my basic steps that I should follow ?

Where will I get the basic information about trading ? can any one help on my issue.

Regards

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I am new to trading and want to know more about it. I am planning to engage in trading so what's my basic steps that I should follow ?

Where will I get the basic information about trading ? can any one help on my issue.

Regards

 

Welcome Arthur,

 

You have just taken the first step down a long, long road.

First, what will you be trading? Futures, Forex, Options?

Down load a DEMO account platform and learn how it operates.

Start getting a "Feel" for whatever market you plan on trading.

When you have questions, ASK!

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When I read those 38 cool steps to trading they remind me of a good book written by Alexander Elder, Study Guide for Come Into My Trading Room if my memory serves me well. From what I've read, methodology is regarded as a better virtue than patience. :)

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I posted this a while back.... Thought it worth re posting.

 

 

I didn't see this posted here anywhere so I thought I would. The " I Look Back Now " thread inspired me. I read this several years ago in a commodities magazine, I have also seen it around on the web:

 

 

38 steps to becoming a trader

 

They are as follows:

 

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 realise we may need more knowledge or information.

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.

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 commodities 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 realise 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 we 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.

 

Most traders will identify with this list and should be able to place themselves within these steps. Keep in mind that very few people progress through these steps in an orderly fashion. Developing your trading skills is an iterative process. For example, you may reach Step 13., find that although you were making money, your basic premise for trading was flawed (you might have been benefiting from the bull market, rather than your own trading prowess and then have been rudely awakened when the market entered a bear phase) and you may drop back to Step 4. and start 'climbing' the steps again. Having the proper mindset, attitude and psychological makeup becomes increasingly important as you progress through the steps. The focus

of the earlier steps is on external issues, i.e. developing proficiency in the mechanics of trading while the focus of the latter steps (particularly from Step 30, on) is on internal issues, i.e. improving ourselves mentally and psychologically, maturing as

traders.

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I'm new to trading. I've read a couple of books like Mastering the Trade. I haven't set up a trading account yet but I have been doing a lot of research. I was wondering if anyone had any suggestions on what books to read that are worth it.

 

Inside the Investors Brain....

New Stock Market Wizards..

depends on what you trade but even if you don't trade options

options market making

i've read alot of George Soros books.. not much have to do with actual methodologies though

Gotta read Jesse Laurenston Livermoore

Reminiscence of a Stock Operator

Nassim Taleb books!

John Murphy .. his bible on Technical Analysis

Technical Analysis of Financial markets.

 

those are a few i've read :)

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Why so many? Maybe a few of those steps ought to be skipped. They are redundant.

 

they are actually all quite different..

one on the psychology "Inside the Investors Brain"

One that encompasses most all technical indicators

"technical Analysis of Financial Markets"

A all time Great famous Traders life

"Reminiscence of a Stock Operator"

etc..

 

Reading and relating.. I read as a matter of practice..

One of my favorite things to read, is the Magazine

Stocks And Commodities.. Traders.com

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Thanks Mysticforex to share these 38 steps. I have been read some steps but not all so rest steps are helpful for me.

 

Glad you like them.

If one person gets something out of them, it was worth reposting.

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Thanks Mysticforex to share these 38 steps.

 

This is really a journey to become a consistently profitable trader. It's not the steps we follow, but that we will progress through.

 

Good trading, everybody!

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Exactly about me. I am somewhere in between 30 and 33. Just wonder how long would it take to be at 38?

 

38. We go on with our lives and accomplish many of the goals we had always dreamed of.

 

You can get to step 38 at any time. Simply quit trading.

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Warning: Banking May Be Hazardous to Your Health - WSJ.com

 

 

Step 39: Follow your OWN intuition

 

Step 40: Go against the grain and do what everyone else is not doing. Find the black swan opportunities.

 

Step 41: Come to grips with reality, you will not make 500k this year sitting in your bedroom

 

Step 42: No matter how much experience you have you will always make bad calls, finance is your opinion on the future, and you will be wrong no matter how many times you have been right

Edited by Elitny

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16. We trade our methodology with some success, but realise that something is missing.

I always feel that something is missing with me..:crap:

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