Trading in forex market has been one of profession that really challenging, as a trader you don’t need to go to specific place like salary people, you just need a computer, good internet connection and currency trading platform provided by brokers to do all of the works. Coming into forex market, there is one extremely dire statisctic, only 10% of traders who are in the market is profitable the first year they enter forex market, it means 90% of them giving money to the 10% who is winning. Reading the statisctic might intrigued you, why there are still lot of people keep trying trading forex and you might questioned is this the right way to earn easily or is it sure way to rapid loss?
The answer for question above is “both of them actually the right answer”, for people who still beginner in forex trading, rapid loss would be the experience they’ll experience at least once, after experiencing it, it is up to them to stand up again and try or give up and never turn back again. Talking about forex trader growth phase, there are 4 stages I can tell
Beginner level – This is the level where all beginner will face at first, they will be excited about trading and find this is the place they can fulfill the dream of financial freedom. They learn about trading terminology, search about brokers, and trading mostly on hunch, getting excited over winnings and extremely hurt by losses. In the end they will experienced devastating account blowout because they lack what it needs to survive in the market.
Complicated trader – After experiencing devastating loss in their account, they realize that trading is not a one day get rich scheme without any homework to do, they start learning how to analyze market, how to do money management, how to create robot that can trade for themselves, finding forex trading platform which has most complete indicators, they pay for courses and do all everything to learn sophisticated system looking for Holy Grail system which 100% loss prove. What they do already good, they know all about trading indicators, they are overflowing with knowledge. The downside is they still expecting trading is like a “no loss” to experience, they cannot accept failed trade and in the end they bust their account.
Advanced trader – Reaching this stage, traders realized there is never a loss-proof system on the Earth. They can accept the most important principle in trading, “As long as you still have capital you can trade”. They will trade focusing on probability of loss instead of probability of win. They stick to one system until the system proved not working. They experience losses too, but the loss is not severe as in previous stages.
Disciplined & Profitable trader – At this stage is the final stage of traders, they do what is working and repeat it with high discipline until the things they do not working again.
After reading about traders growth stage, we can say, forex is not about easy earn or rapid loss, but it’s more about if you want to enjoy the plus side of forex trading, then you gotta do your homework first, never there is a free lunch in trading world.