The 9 Stages of Trading You Must Experience

1. Just entering the market, unclear about trading rules, indecisive about what to buy or sell, mainly relying on community news for intraday short trading, closing positions when profitable, and holding on when losing.

2. Starting to learn new knowledge, looking at various information, encountering some technical analysis but unable to apply it, finding reasons for price increases and decreases, trading is still relatively frequent, overall still losing.

3. Although still at a loss, beginning to understand that making a profit in the market is difficult. Learned technical methods, understands the importance of following trends, feels that technical indicators are not precise enough, so attempts to adjust parameters, but still occasionally accurate and occasionally not.

4. Having experienced significant losses or liquidations, no longer believing others, beginning systematic learning of methods to overcome the market. When losing, must set stop-losses, but cannot find a stop-loss point, feels that judging the market is too difficult, and does not believe it is possible to make money.

5. To survive, must have a trading system, still unclear about trading, attempts to use indicators to create a trading system, but cannot understand whether it’s a correction or a reversal. Making three to five hundred daily on intraday short trades, still losing at the end of the year.

6. Starting to understand that trends cannot be predicted, establishing one's own trading system, beginning to hold onto wrong trades, with profits and losses roughly equal. Sometimes following one's own trading system, sometimes unable to believe that money can be made in the market.

7. Gradually able to achieve stable profits, having resolved issues in trading, developed a personal trading philosophy, not too concerned about technology, as long as the concept is correct, simple moving averages can provide stable profits.

8. Profits have become routine, as automatic as driving with red lights for stopping and green for going. Trading is completely unconscious, no need to define stop-losses with charts, nor to calculate profit-loss ratios, because fundamentals are of no use.

9. At this point, trading only a few times a year, and possibly holding onto a single trade for years, rarely watching the market, not mentioning trading to others, because no one can understand the trading journey. Approach with a mindset of detachment, approach with a mindset of detachment.