Stages of a successful trader
Posted on 5th April 2022
To become a successful trader you will need to learn and develop a new skillset. It is a journey that will make you learn a lot about yourself as an individual and require you to action change.
The University of Rhode Island say there are 5 stages of change. Precontemplation, contemplation, preparation, action and maintenance.
Which stage are you on?
Precontemplation: This is where there is no intention to change behaviour in the foreseeable future, as they do not believe there to be an issue that requires change – or at least are not aware of the aspect of their trading that requires action. This usually means that a trader is jumping from strategy to strategy, searching for a holy grail trading strategy or trying out and adding an endless number of indicators to their charts.
They are unaware that the issue does not lie with the strategy or the indicators, but more likely in their habits, mindset and processes of trading. But because they are unaware – they cannot action change in the areas that need it
Contemplation: This is the stage that a trader becomes aware of an issue that requires action, but has not yet committed to taking action to change.
This is where a trader realises things are not working, and despite knowing a strategy inside out and having a detailed and structured trade plan, they still make emotional decisions that deviate them from their plan and cause them pain – possibly even the maximum pain of blowing an account. Have you ever repeatedly found yourself in a trade that you know you shouldn’t be in?
The definition of insanity is doing the same things over and over again, but expecting a different result.
If you are at this stage, ask yourself, what will happen if you do not action change? Will you improve as a trader, or will you carry on as you are? You need to grow, and you need to take action.
Preparation: This is where you prepare to action your change. You have identified the weakness and are looking for the right tools to help you. Maybe you are looking for a course that specialises in the area that you are weak, or looking for a mentor. You may not have actioned the change – but you have started the ball rolling to Make. It. Happen.
Action: This is where you modify your behaviour and habits and start to improve yourself. You rid yourself of the unwanted and destructive habits, and you start wiring the desired habits into your neural pathways to create the new habits that will be of more benefit to you and your trading. It will take time and dedication, it will require a lot of energy, but you are now changing your subconscious.
Maintenance: This is where people continue to work to prevent relapse and falling back into old habits. They do not become complacent and continue to compound the gains made by further instilling their newfound rewarding beliefs and habits.
Only once you have consolidated the gains in your behaviour patterns, and can prove that you consistently make the correct decisions according to your structured plan. That you do not react destructively to trading losses. That you show emotional intelligence in your decision-making at all times in your trading. Only then can you consider yourself on your real path to creating long-term trading success.
No matter which stage you are at on your journey, I have been there and have services to help move through the stages to reach the success you desire. Come check out our services or get in touch, and let us help you Make. It. Happen.
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