The Six Stages from Novice to Master, Which Stage Are You In?
First Stage: Crazy Gambler
1. Trading Style: Treating trading as gambling, blindly believing in the myth of getting rich quickly, often fully invested, chasing highs and cutting losses.
2. Thinking Characteristics: Lack of rational analysis, not understanding that “wealth doesn’t come through hasty means,” relying on impulse and luck to operate.
3. Result: Significant account fluctuations, high risk of liquidation.
Second Stage: Indicator Slave
1. Trading Style: Dedicating oneself to studying technical indicators, such as moving averages, MACD, etc., attempting to find a foolproof trading method.
2. Thinking Characteristics: Over-reliance on technical indicators, ignoring the market's complexity and variability, firmly believing that indicators can bring certainty.
3. Result: Although effort is invested, the win rate is often below 50%, easily getting lost in the maze of indicators.
Third Stage: System Awakening
1. Trading Style: Abandoning complex formulas, using simple rules to define market conditions, such as entering trades when prices break moving averages, and stopping losses when prices fall.
2. Thinking Characteristics: Beginning to understand the essence of trading, not seeking perfect trading opportunities, constructing the prototype of a trading system.
3. Result: The trading system is initially formed, but execution is weak and easily disturbed by emotions, etc.
Fourth Stage: Ruthless Executor
1. Trading Style: Strictly operating according to the trading system, decisively executing trading signals, including entering trades, stopping losses, and taking profits.
2. Thinking Characteristics: Possessing a high level of discipline, overcoming the influence of emotions on trading.
3. Result: The account curve is relatively stable, but the trader may feel like mechanically executing trades, yearning for a breakthrough.
Fifth Stage: Probability Master
1. Trading Style: Accepting losses as part of trading, not getting hung up on single losses, pursuing long-term compounding.
2. Thinking Characteristics: Understanding that profits and losses stem from the same source, viewing trading with a macro, long-term perspective, focusing on probability advantages, position management, and long-term compounding.
3. Result: Better able to cope with market changes, maintaining a calm mindset.
Sixth Stage: Market Philosopher
1. Trading Style: Trading as instinct, natural and smooth, holding and closing positions calmly and composedly.
2. Thinking Characteristics: Viewing trading as a human nature game, using philosophical thinking to capture trends, integrating with the market.
3. Result: Reaching the realm of “unity of man and market,” making trading decisions based on a profound understanding of human nature and the essence of the market.
