There’s an old saying in the trading circle: 'Seeing the mountain is just a mountain, seeing the mountain is not a mountain, and seeing the mountain is still a mountain.' This seemingly convoluted philosophy expresses the four stages of a trader’s transformation—
One, the random buying and selling period: entering the market based on feelings.
Beginners in the market often do these things: listen to rumors to chase gains and cut losses, bet everything based on market fluctuations, hold on when losing, and run when making profits. There’s no system or discipline, akin to driving blindfolded—occasionally making money by luck, only to have the market take it all back in an instant. The core issue at this stage is treating trading as gambling, relying solely on instinct.
Two, the crazy learning period: understanding the technology but not making money.
Realizing the problem of losing money, they start to intensely study technical indicators, learn candlestick patterns, and even draw trend lines themselves. However, execution always falters: clearly setting stop losses, but when losing, they keep thinking 'just wait a little longer'; after finally catching the trend, they fear profit reversal and exit early. This stage is like holding a map but getting lost—understanding the method yet unable to control their actions, jumping back and forth in 'anxiety-hope.'
Three, the system formation period: able to make stable profits, but still prone to mistakes.
Finally discovering a trading system that suits them: knowing when to buy and when to sell, the account starts to grow steadily. However, a new problem arises: after continuous profits, they can’t resist increasing their position size, and one mistake can wipe out all profits. This stage is like a newly licensed driver: capable of smooth driving but panicking in unexpected situations, needing constant review and refinement of their system.
Four, the unity of knowledge and action: trading becomes instinctive.
Truly mature traders can instinctively judge whether to act upon seeing market movements: leaving the market early before the trend ends, decisively reversing when false breakouts occur, and all operations feel as natural as breathing. This is not based on technical analysis, but rather market experience ingrained in their bones—like a veteran driver who doesn’t have to think about how to steer, their intuition helps them avoid pitfalls.
The key breakthroughs at each stage.
• From random buying to learning: let go of the illusion of 'making money by luck', systematically learn the basics (such as trend theory), and record the reasons for the gains and losses of each trade;
• From learning to system: don’t be greedy for everything, choose one method (such as trend following) to refine, force yourself to adhere to the rules, and even if you incur short-term losses, don’t easily change the system;
• From system to instinct: combine trading with personality—impatient people shouldn’t engage in long-term trades, those with poor patience shouldn’t touch volatile markets, and find the rhythm that suits you best.
From blind to aware, it takes at least three to five years, or even more than ten years—but as long as every step includes reflection, every detour you take will ultimately become a stepping stone upward.