Profitable Day Trading: 4 Stages of a Trader

https://www.youtube.com/watch?v=nqSkocLlo0A&t=6s

Profitable Day Trading

There are four stages of a trader, and based on my experience, every trader goes through these four stages before becoming highly profitable with day trading.

Stage One

A lot of people start out trading not
knowing what they’re doing or how to limit their risk, and without a system.
This is how they lose a lot of money.

That is stage number one. And it’s often
caused by ignorance, because these days it’s so easy to become a trader.

How do you become a trader? You open an
account and push a few buttons and this is how you buy and sell. This is where
traders lose a lot of money.

The important thing is, once you realize
that you are making a mistake, you will realize that you need a trading system.

Once you have a trading system you
typically move into stage number two, which is losing a little bit of money.

Let’s talk about a trading system first.

A trading system basically does the
following three things.

  1. It tells you exactly what to trade.
  2. It tells you when to enter a trade, when to buy or sell if you’re
    betting on a falling market.
  3. It tells you when to exit a trade. There’s two ways to exit, it’s
    either with a profit, or with a loss.

So it is very important that you have a
trading system.

If you need a trading system and you would
like to know how I personally trade go to www.mytradingroutine.com. This is
where I have a quick video for you that shows you my trading system, the one
that I personally use.

Stage Two

So stage number two is losing a little bit
of money and this is where most traders are giving up.

Keep this in mind; of course every trader
wants to make a lot of money, right? But after losing a lot of money, typically
stage number two is losing a little bit of money.

Trust me, if you lose a little bit its part
of your journey as a trader, let me assure this.

I’ve been in this phase for a few months, trust
me, you’re doing better than the majority of traders.

At this point when you are losing a little
bit of money, do not give up because now you’re so close to stage number three.
And what is stage number three?

Stage Three

profitable day trading

In stage number three you are making a
little bit of money.

Now you see, stage 2 and 3 is typically
where your account does not move a whole lot. It goes up a little bit, it goes
down a little bit.

But even if it just goes up a little bit, from
$10,000 to $10,500, once you’re in stage number three where you make a little
bit of money your main goal is to focus on consistency.

When you can consistently make small
profits, then you will quickly go into stage four.

Stage Four

Making a lot of money.

Why is that? Because when you are
consistently profitable you can add money management to the mix, which is like
adding fuel to the fire, the turbo boost.

However, it is important that you are in
stage three, that you are making some money before you add money management.

I’m curious what stage you are in? Trust
me, being in stage number two and three can be the most frustrating stage.

But when you are make sure that you are
sticking with what you are doing, based on my experience you are so close to
profitable day trading and making a lot of money.

Steps to profitable day trading

Stage number one, losing a lot of money.

Stage number two, losing a little bit of
money.

Stage number three, making a little bit of
money.

And stage number four, making a lot of
money.

Every trader that I know is going through
these four stages. And the worst thing that you can do is give up when you’re in stage number two or number three because usually it is
just a matter of weeks, you’re so close to being in stage number four.

Was this helpful? If so, please like this
video and leave a comment and let me know what stage you are in right now.

Hopefully, we will see in these comments that most traders are in 2 and 3 and I really hope that some of you are already on stage four making a lot of money.

Read Next: Trading 101: Stocks vs ETFs – What’s The Difference?

  1. 1
    List Element
  2. 2
    List Element
  3. 3
    List Element
Like it? - Share it!

Leave a Reply 0 comments