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Mr. Anderson

@TrueCrypto28

Mar 5

This could be the most important trading-related post you'll ever read:

The 6 Stages of a Trader

Understanding these stages can show you where you are now and where you need to be.
(Thread👇)

Stage 1: The Mystification Stage

At first, charts appear as random squiggles. You don’t grasp market structure or how the economy impacts prices. Everything feels like magic. Over time and with study, the chaos begins to reveal a pattern.

Stage 2: The Hot Pot Stage

You notice a pattern that seems to work and begin trading it. Initially, you feel excited as it appears promising until your stop-loss gets triggered. Sometimes you win, and sometimes you lose. This stage teaches you that no strategy wins every time. Think of it like testing a hot stove; you learn by getting burned.

Read 8 tweets

Mr. Anderson

@TrueCrypto28

Jul 26, 2024

"6 Stages Of A Trader"

If we are to become great traders, we will experience some variation of all six of these stages.

Being aware of these stages can help you identify where you are now and where you need to eventually be.

(Which stage are you currently at?)

Stage One of the journey to become a Master Trader:

The Mystification Stage

This is where the neophyte trader begins.

He has little or no understanding of market structure. He has no concept of the interrelationship among markets, much less between markets and the economy.

Price charts are a meaningless mish-mash of colored lines and squiggles that look more like a painting from the MOMA than anything that contains information.

Anyone who can make even a guess about price direction based on this tangle must be using black magic, or voodoo.

However, as one begins to observe, read, and study, the mess may begin to resolve itself into something that may make sense. Sort of... 😉

Stage Two of the journey to become a Master Trader:

The Hot Pot Stage

You scan the markets every day. After a while (sometimes a good long while), you notice a particular phenomenon that appears regularly and seems to "work" pretty well.

You focus on this pattern. You begin to find more and more instances of it, and all of them work! Your confidence in the pattern grows, and you decide to take it the next time it appears. You take it, and almost immediately your stop is hit, and you're underwater for the total amount of your stop-loss.

So, you back off and study this pattern further. The very next time it appears, it works. And again. And yet again. So you decide to try again, and you take the full hit on your stop-loss.

Practically everyone goes through this, but few understand this is all part of the win-lose cycle.

They do not yet understand that loss is an inevitable part of any system, strategy, method, or other approach; there is no such thing as a 100% win approach.

When they gauge the success of a particular pattern or setup, they get caught up in the win cycle. They don't wait for the "lose" cycle to see how long it lasts or what the win/lose pattern is.

Instead, they keep touching the pot and getting burned, never understanding that it's not the pot (pattern/setup) that's the problem but their failure to understand that it's the heat from the stove (the market) that they're paying no attention to whatsoever.

So, instead of trying to understand the nature of thermal transfer (the market), they avoid the pot (the pattern), moving on to another pattern/setup without bothering to find out whether or not the stove is on.

Stage Three of the journey to become a Master Trader:

The Cynical Skepticism Stage

You've studied so hard and put so much effort into your trading and this universal failure in the patterns only when you take them causes you to feel betrayed by the market, the books and materials and gurus you tried to learn from.

Everybody claims their ideas lead to profitability, but every time you take a trade, it's a loser, even though the setups all worked perfectly before you played them.

And since one of the most painful experiences is to fail when success looks easy, this embarrassment is transformed into anger: anger at the gurus, anger at the vendors, anger at the writers, the seminars, the courses, the brokers, the market makers, the specialists, the "manipulators".

What's the point in trying to analyze and improve your trading when so many dark forces are out to get you?

This excuse-driven blame game is a dead-end viewpoint, explaining many of the things you find on message boards. Those who can't pull themselves out of it will quit.

Read 7 tweets

Mr. Anderson

@TrueCrypto28

May 29, 2024

"6 Stages Of A Trader"

If we are to become great traders, we will experience some variation of all six of these stages.

Being aware of these stages can help you identify where you are now and where you need to eventually be.

(Which stage are you currently at?)

Stage One: The Mystification Stage

This is where the neophyte trader begins.

He has little or no understanding of market structure. He has no concept of the interrelationship among markets, much less between markets and the economy.

Price charts are a meaningless mish-mash of colored lines and squiggles that look more like a painting from the MOMA than anything that contains information.

Anyone who can make even a guess about price direction based on this tangle must be using black magic, or voodoo.

However, as one begins to observe, read, and study, the mess may begin to resolve itself into something that may make sense. Sort of... 😉

Stage Two: The Hot Pot Stage

You scan the markets every day. After a while (sometimes a good long while), you notice a particular phenomenon that appears regularly and seems to "work" pretty well.

You focus on this pattern. You begin to find more and more instances of it, and all of them work! Your confidence in the pattern grows, and you decide to take it the next time it appears. You take it, and almost immediately your stop is hit, and you're underwater for the total amount of your stop-loss.

So, you back off and study this pattern further. The very next time it appears, it works. And again. And yet again. So you decide to try again, and you take the full hit on your stop-loss.

Practically everyone goes through this, but few understand this is all part of the win-lose cycle.

They do not yet understand that loss is an inevitable part of any system, strategy, method, or other approach; there is no such thing as a 100% win approach.

When they gauge the success of a particular pattern or setup, they get caught up in the win cycle. They don't wait for the "lose" cycle to see how long it lasts or what the win/lose pattern is.

Instead, they keep touching the pot and getting burned, never understanding that it's not the pot (pattern/setup) that's the problem but their failure to understand that it's the heat from the stove (the market) that they're paying no attention to whatsoever.

So, instead of trying to understand the nature of thermal transfer (the market), they avoid the pot (the pattern), moving on to another pattern/setup without bothering to find out whether or not the stove is on.

Stage Three: The Cynical Skepticism Stage

You've studied so hard and put so much effort into your trading and this universal failure in the patterns only when you take them causes you to feel betrayed by the market, the books and materials and gurus you tried to learn from.

Everybody claims their ideas lead to profitability, but every time you take a trade, it's a loser, even though the setups all worked perfectly before you played them.

And since one of the most painful experiences is to fail when success looks easy, this embarrassment is transformed into anger: anger at the gurus, anger at the vendors, anger at the writers, the seminars, the courses, the brokers, the market makers, the specialists, the "manipulators".

What's the point in trying to analyze and improve your trading when so many dark forces are out to get you?

This excuse-driven blame game is a dead-end viewpoint, explaining many of the things you find on message boards. Those who can't pull themselves out of it will quit.

Read 7 tweets

Mr. Anderson

@TrueCrypto28

Feb 10, 2024

So, you want to be a Technical Trader? 👇👇👇

1. Education & Knowledge:

Learn to understand the markets, various trading instruments, and methodologies. However, your ultimate goal must be Mastery.

2. Trading Plan:

Develop a comprehensive trading plan outlining your strategies, goals, risk tolerance, and evaluation criteria.

3. Risk Management:

Only risk a small percentage of your trading capital on a single trade.

Employ stop-loss orders to limit potential losses.

Understand and manage leverage carefully.

Read 14 tweets

Mr. Anderson

@TrueCrypto28

Nov 13, 2023

"6 Stages Of A Trader"

If we are to become a great trader we will go through some variation of all 6 of these stages.

Being aware of these stages can help you identify where you are now and where you need to eventually be.

(Which stage are you currently at?)

Stage One: The Mystification Stage

This is where the neophyte trader begins.

He has little or no understanding of market structure. He has no concept of the interrelationship among markets, much less between markets and the economy.

Price charts are a meaningless mish-mash of colored lines and squiggles that look more like a painting from the MOMA than anything that contains information. Anyone who can make even a guess about price direction based on this tangle must be using black magic, or voodoo.

However, as one begins to observe, read, study, the mess may begin to resolve itself into something that may make sense. Sort of... 😉

Stage Two: The Hot Pot Stage

You scan the markets every day. After a while (sometimes a good long while), you notice a particular phenomenon which pops up regularly and seems to "work" pretty well.

You focus on this pattern. You begin to find more and more instances of it and all of them work! Your confidence in the pattern grows and you decide to take it the very next time it appears. You take it, and almost immediately your stop is hit, and you're underwater for the total amount of your stop-loss.

So you back off and study this pattern further. And the very next time it appears, it works. And again. And yet again. So you decide to try again. And you take the full hit on your stoploss.

Practically everyone goes through this, but few understand that this is all part of the win-lose cycle.

They do not yet understand that loss is an inevitable part of any system/strategy/method/what have you, that is, there is no such thing as a 100% win approach.

When they gauge the success of a particular pattern or setup, they get caught up in the win cycle. They don't wait for the "lose" cycle to see how long it lasts or what the win/lose pattern is.

Instead, they keep touching the pot and getting burned, never understanding that it's not the pot (pattern/setup) that's the problem, but a failure on their part to understand that it's the heat from the stove (the market) that they're paying no attention to whatsoever.

So instead of trying to understand the nature of thermal transfer (the market), they avoid the pot (the pattern), moving on to another pattern/setup without bothering to find out whether or not the stove is on.

Stage Three: The Cynical Skepticism Stage

You've studied so hard and put so much effort into your trading and this universal failure in the patterns only when you take them causes you to feel betrayed by the market, the books and materials and gurus you tried to learn from.

Everybody claims their ideas lead to profitability, but every time you take a trade, it's a loser, even though the setups all worked perfectly before you played them.

And since one of the most painful experiences is to fail when success looks easy, this embarrassment is transformed into anger: anger at the gurus, anger at the vendors, anger at the writers, the seminars, the courses, the brokers, the market makers, the specialists, the "manipulators".

What's the point in trying to analyze and improve your own trading when there are so many dark forces out to get you?

This excuse-driven blame game is a dead-end viewpoint, and explains a lot of what you find on message boards.

Those who can't pull themselves out of it will quit.

Read 6 tweets

Mr. Anderson

@TrueCrypto28

Feb 3, 2023

Envy is the root of all modern evils.

THEY want you to believe that GREED runs the world.

In truth, it's ENVY that runs the world today and envy is far worse

Envy as defined by Immanuel Kant👇

Since the beginning of time every wise piece of literature warned about envy.

The Bible

“A heart at peace gives life to the body, but envy rots the bones”

Greek philosopher Democritussaid, a free and peaceful society would actively seek to discourage envy.

“The laws would not prevent each man from living according to his inclination, unless individuals harmed each other; for envy creates the beginning of strife”

Seneca the Younger: “It is the practice of the multitude to bark at eminent men, as little dogs do at strangers”

Read 6 tweets

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