50 steps of a traders Based upon an original by Mike Mc Mahon Director of Education Online Trading Academy adapted by Steve Beaumont 1)
We accumulate accumulate information. information. Attend seminars, expos and the like, buy books. books.
2)
We feel we have researched and and now it’s time to trade with our ‘new’ knowledge.
3)
We learn the the way of consistently ‘donating’ ‘donating’ and then then it occurs occurs to us we may need more
knowledge. 4)
We accumulate more information in the same way.
5)
We change instruments that we trade- stocks stocks to indices, indices, indices to options, currencies currencies to futures futures
etc 6)
We go back to the market market with updated better better knowledge knowledge and trade.
7)
Again the beating beating starts and the donation continues. continues. Confidence is ebbing, and fear is taking
hold 8)
We start start listening listening to to other other traders, outside news, tips.
9)
We go back and donate some more
10) It is time time to switch switch securities again 11) We need a community of successful traders to work with. 12) Actively seeking new information information that will fix it. Focus is on the problem. problem. We seek education not information, guidance not advice, support not critique. 13) We get education. Now we understand understand the market, what constitutes constitutes a plan, and how financial risk works. 14) Back into the market we see see some progress, at last we are getting it 15) As we get over confident confident the market provides some humility humility and takes some money back back 16) Now we truly understand. understand. Trading successfully is going to take more time and more knowledge than we first thought. It is serious determination that will see us through. This is the point at which most will give up. Beyond this point is where truly successful traders are made.
17) Now we get serious and start concentrating on a viable realistic method. We reflect back on our education and use it to find the method. 18) The method is working with limited success. It is a foundation and now we must improve upon it. 19) We now understand some rules are required, these will make the application of the method stronger. 20) It is at this point we need a reliable mentor, continued education. Someone who understands what it takes and can show us method and rules in action. 21) We stop trading for a bit, and develop and research our rules. 22) We use our mentors guidance to hone our rules. We see our mentors rules in action. 23) We start trading again and with the rules find some success. There is still hesitation in our execution. 24) We review our rules on a regular basis, hold them up to scrutiny modify when necessary. We learn to be proficient with our rules. 25) Now we feel that the threshold to be a successful trader is in sight, we are about to cross over 26) We now take full ownership of our trading result, and it is then we understand our success is in us, not the method 27) Trading continues, we become proficient with our method and rules 28) Education continues giving us an understanding of the effects of our rules and method. Seeing other rules and method in action. Now the books are starting to make sense! 29) The tendency to break the rules still exists and causes our results to be a little erratic 30) Time to go back and research the rules 31) We know we are close, we can taste the success 32) Now we have confidence in our rules and take that to market, obeying our rules for our success 33) The results are getting better, much better infact. Though we still hesitate in executing the rules 34) The results start to consistently show that only violating the rules stops our success 35) We can now see the lack of success is in us. Any tendency not to follow the rules because of fear
causes the problem. We now begin to work on ourselves and understand how we work. 36) We continue to trade and the market teaches us more and more about ourselves. 37) We master ourselves, our method and our rules 38) We consistently make money 39) We get a little over confident and the market humbles us 40) We continue to learn our lessons, and embrace them when they come along 41) Now we stop thinking and just follow the rules. Trading has become boring but successful, our account continues to grow and our positions size is increasing 42) We are making more money than we dreamed possible 43) We now have the freedom we first sought and our dreams are a reality. We are earning more than ever seemed possible. 44) We know our rules will need review. We know our method will need review. We know we will need review. 45) We use our community of successful traders to keep our path true. 46) We now know what it takes to be a successful trader.
Where are you on the path?
