We follow Mark on his journey. You will be able to determine at what stage are.
Step 1
Mark is absolutely not interested in the world of futures, drew attention to the movements that make the pork bellies.
Stage 2
Mark exploring the world of futures on a number of publications, "How to get lucky in the futures market, bought for 49.95 dollars.His interest publications, and he paid for the "secrets" that are so described. After losing money with the "secrets", he leaves the stage 2 by buying more newspapers, news, seminars, programs, and moves to stage 3.
Stage 3
Now Mark thinks that all people who sell secrets - crooks. So he decides to trade, relying on their own intuition. Buys and sells using a combination of guesswork, advice, gossip, observations, etc., and begins to see some success of his enterprise.It feels good and as soon begins to build up its presence in the market, loses a few big blows of the market.
Stage 4
At this time, after several years of licking the wounds he tries to technical indicators. He seems to be the experts and pros should be able to predict the markets.Otherwise, like why are they successful?
He tries to follow the pros in their actions. He tries to follow the complex methods of Fibonacci, Elliott Wave, cycles to determine how high or low the market will go. But as long as it does not work and he continued to lose money.
Now, every Trade scares him.Lose if it all again? Fear makes the best possible - paralyzes him. Lesson the third step was painful.
Level 5
He is still tied to the charms of the indicators. There must exist a set of indicators that predict market movements and feel them. There should be an indicator that will provide profitable Trade.
Now all his decisions based on the indicators.He does not want to buy, if ADX is below 16 and Stochastics oversold and below 10, although the trend line shows up. He then selects the 20-minute window of time to verify these criteria.
He still can not make money, and realized that something more is necessary than a simple indicator.
Level 6
So to the Trade Mark adds stops to protect capital. "Just to be able to stay in the game until the next Trade. I know I can do it "- he tells himself.
But he still loses money, but less than before, and does little to win.Expense fluctuates between plus and minus, not wanting to grow.
Step 7
Then Mark comes the revelation: "If I can just stay out of the choppy market, I tear the jackpot." He returns to the prediction of the market.So he returns to his true indicators, and when they say: «Choppy», - he remains outside the market, just waiting for more traffic.
The market is punishing him, knocking out a quarter of the account. Mark berates himself for what he does, but it's too late.
When he follows his system and goes to fix profit, the market continues to move and Mark berates himself for not stayed in the market. Though still does not understand that this is not important. We ought to leave it as is, but he can not.He feels that this is again a failure, because it was possible to remove all of the market. Poor, poor Mark.
He has no ready-made solutions for all times and sometimes he uses a subjective view and the market rewards it.This is what happens while he thinks that he understands what is happening, then the market takes all the earnings, plus a few more for good measure.
Mark is afraid to trade. He's a smart man, but does not understand why what he is doing is not working. Why can not do something that makes the pros. What's your secret? "
Most people stop at this point, sometimes returning to Step 2 and repeating the cycle.
Step 8
Once at this level, Mark found out what the benefits of prediction markets, news, the illusion that there is some special secret market.
He takes the loss, as the need for Trading and departs from the use of 80 per cent of their time on analysis of indicators in favor of using 80 percent of time on money management.
His indicators over the years have shown the effectiveness of 50 to 50, but he was happy and that.
He knows that the key to profit-not to get 80 percent of profitable trades, and in making small Lossow when he is wrong, and big winnings when the rights to hold the position. He never allows the position to sail out of hand. If it gets bad execution order, it comes out of the market.To remove the profit it applies only objective trailing stop. Everything else thinks butter oil.
Mark also has a set of rules for determining the trend, as criteria for entry and exit. He knows that this is not the key to big profits, but also clarifies the possible uncertainty.
His system is tested extensively on historical data and high-quality work while following the rules without having to answer additional questions. He may think that the market is growing, but if at this moment, the system says "sell, sell without hesitation.There are no situations that go beyond his system and he does all the computer, follow the instructions. The system never leaves him in front of a twofold choice.
Now he knows that Trading more, much more than just an indicator for all occasions.
Step 9
Mark follows his system.Every loss is that it takes to close the subsequent profit, and now Mark is trading without emotion.
Nothing can force him to retreat from their own rules. Moreover, when the market behaves insanely, he even tougher follows its own rules.Can take the loss, but they are never large.
He is now expanding its money management techniques for the objective capacity of position after a series of consecutive loss. It makes backing Testing of the system and knows the maximum consecutive Lossow that can get.It expands its presence in different markets, but never admits spraying capital. Better to put all your eggs in one basket and to closely monitor this basket. He knows that his system might offer to open a position and he did not want to have insufficient capital at this time.
Trading was for him an easy task. He does not know how the market works, whether the market goes up or down, it does not care. He does not know how many will work for the next day, but can name a few per cent, earned in a month or year.
Stage 10
Mark on top of opportunities and is vigilant not to become careless and do not lose progress.
He sells a large number of contracts, but very low risk to capital. Nothing can bring him out of the game. He slowly builds up the position of always slower than the rate of its expense.He puts so much money that, in any case, remained adequate capital and could return to the market. It diversifies its investments among different markets and always keeps a large portion of the money in government securities.Government securities can be sure that nothing can cause harm to the account, while his trade on the system runs efficiently.
World of opportunities once closed to him, was open.But Mark has always been modest in relation to the merciless market, taking what he allows himself.
So the same answer myself:
1. At what stage you're standing?
2. At what stage you want to be?
3. What prevents you budge?
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