Seven stages of trading forex....

[munchiedude]

something i picked up the other day....

We all have been there, trust me. Some say that 95% of all who try forex lose 100% of thier money. I believe that.
I have a therory about the stages each forex trader goes through. I would venture to say nearly everyone with any experience in forex would agree with me.
I call this "The Seven Stages of Tradeing Forex"

You begin by being conservative.
You start out being very carefull with your trades, keeping lots small and stops tight.

Which leads to success.
Your plan is working, and your account is seeing gains.

Which leads to overconfidence.
The plan works every time. look at the gains you are making. You must be a genius. You have found the holy grail..

Which leads to Greed.
If you can make this much with one lot, then why not trade 2 lots, right?

Of course what follows is denial.
The market will come back, right, it always does, we should just double down.

And then comes panic.
No, No, No, not a margin call.........

And then my favorite, dispair.
Its all gone, every last bit.

Some times this path is repeated with a few revenge trades thrown in. Sometimes the hit is big, sometimes it is small. But everyone takes a hit. The thing to do is learn from it and try not to go down the same path.
Pick yourself up and learn from it. You can do it.

 

[Black Swan]

Nope that's not the one...there's a 39 stages one out there somewhere

 

[munchiedude]

really? wow...talk about detail...i thought this was very good for the newbie...at least they know what psychological stajges they could face...i think im at stage 2!

 

[enragedcow]

good description of the people who fail

if you can spot the stages and change your behaviour you're winning

(yes, b-e-h-a-v-i-o-U-r, because Imperial English is real English, and mozilla's spell check can GTFO for underlining it red)

 

[munchiedude]

riiiiiiiiiiiiiiiiiiiight....behaviourrrrrrrrrrrrrrrrrrrrrrrrr.....! whats gtfo?

 

[spreader_legger]

Don't really know whether there are any fixed stages. Of course you could always curve fit your own journey to satisfy whatever model you wish to adhere to. One things for sure though .... the journey never ends .... it evolves and changes as the market does

 

[shadowninja]

5 stages, you will find...

This is what I have to put up with daily when speaking to Masq on MSN.

 

[spreader_legger]

I stand corrected

5 stages, you will find...

This is what I have to put up with daily when speaking to Masq on MSN.

 

[the hare]

That giraffe video is beyond a doubt the best post EVER made at T2W.

 

[shadowninja]

"Well this is just ****ing perfect!! Stupid quicksand! Stupid jungle! Argh, I wanna bite someone in the face! Mother****er! Mother****er! Mother****er! Argh! ****! Stupid jungle! ****!!"

"WaaaAAAAAaaaaaah!WAahhhhhhhhhhhhhhh!"

 

[munchiedude]

 

[Black Swan]

Don't really know whether there are any fixed stages. Of course you could always curve fit your own journey to satisfy whatever model you wish to adhere to. One things for sure though .... the journey never ends .... it evolves and changes as the market does

Curve fit the journey... nice one..

 

[munchiedude]

whats a 'troll'?

 

[dc2000]

whats a 'troll'?

little plastic creature with pink hair

 

[munchiedude]

you mean this?

 

[munchiedude]

i think i've advanced to stage 5...