The Evolution of a Successful Trader
According to psychologists, there are different states of professional self-esteem. Let's apply them to the crypto space. After all, being a trader is virtually no different from other professions. It might be good for our investors to know what stages their potential partners are going through, and some of the traders may recognize themselves.
- Unconscious Incompetence
People are finding out that crypto is on-brand: there are hardly any restrictions on income, and "big brother" will no longer be able to watch you. The main myth for you folks is that trading is very simple. Most newbies think that. However, when it comes to the first transaction, this is serious business.
Of course, there is always beginner's luck. But this is probably the worst-case scenario. because novice players will be convinced that trading is easy enough, and risk even more.
What happens at this stage? Users do not understand that they are completely incompetent and think from a position of an amateur. Nevertheless, they still go on intuitive trading… They trade until they reach the next stage…
- Conscious Incompetence
All at once, it comes over people, like a great light: they realize they have to work hard, think quick, and better off using their heads to seize the moment. Not just learn and apply popular strategies. Users understand that a regular income is far from being achieved.
Parallel to this, work on errors is beginning: crypto fans read books, google thematic forums, keep switching trading strategies... Indicators or any other tools are perceived as a savior.
Well, it's not going to feel good but we are here to soothe you: this too shall pass.. Once something will click in your brain and suddenly everything will become clear. This is where the third stage comes into play.
- That Eureka Moment
You have realized that the market movement cannot be calculated mathematically. Now you ignore experts' predictions or events that may affect the price. From this point on, you start working on your own method.
You stick to one trading strategy that changes infrequently. If the prices go wrong after the signals – you do not get angry, because you work with the "advantage" that the system gives, and as a result, you will still be better off.
- Conscious Competence
Now the transaction is opened only by the system. Profit or loss-it doesn't matter, you are a bit more light-hearted. The income flows, and the loss is cut in the bud. This is the level when you close trades having a small profit in most cases. This period lasts on average six months.
- Unconscious Competence
This stage is characterized by 100% confidence in the actions performed. Everything comes naturally, on a subconscious level, on auto-pilot. You receive small but steady returns.
The very process of trading turns into routine, ordinary work that needs to be done efficiently.
As you can see, to succeed, you will have to face a difficult road ahead, but great struggles have always yielded great rewards. And only at the end of your journey, you will be able to point with pride "I successfully trade and I am a crypto trader".