The Five Stages of Trading, Which Level Are You At?

1. Novice Chaos Stage

Blindly entering the market, frequent operations

Gambler's mentality, holding positions against the trend

80% of people are eliminated at this stage

2. System Obsession Stage

Frantically researching indicators and formulas

Superstitious about technology, pursuing the trap of perfection

99% of people fall into a cycle of losses and eventually give up

3. Cognitive Breakthrough Stage

Accepting the unpredictability of the market

Establishing a mechanical trading system for rebirth

Transitioning from prediction-based to rule-based to start stopping losses

4. Stable Profit Stage

Mechanical execution, intuitive trading

Stable profits, calm mindset

Treating trading as a job, profits and losses are unperturbed

5. Trading Master Stage

Flowing like water, intuitive trading

Significant profits yet a calm heart

The market is my heart, my heart is the market

Simplicity is the ultimate sophistication