Five Level For Every Forex Trader

I just begin learn to trade forex this year. It started when I met my friend, whom I never expect to be an expert in this business, and became my mentor. Here is some of the story...

One day at Saturday night, I wander around this tiny little town aimlessly, thinking about my future. I'm walking, but yet my thoughts wander. I keep walking...and walking. Then I sit down, reminiscing the past.
Tell you guys that time I was thinking "what's the purpose of my life". Seriously, living a life without proper purpose and goal is one serious scary shit. I think back, the thoughts of  "if only...if only" keep repeating in my head.
That time I just had serious problem with my significant other, and it drag to my family too. I was devastated. Until everything cools down, and everything turn to normal later on. But scars remain, memories contained.
My thoughts keep this "if only" thought plays, I smiled to the outcome. Though it was a bitter smile, I accept my fate.

And then...I met my friend which soon become my mentor in forex. His method of teaching is...well, different than the others. He DISCOURAGED me, telling me how hard it is to trade in this business. But to hell with that, I'm curious. At first I was just listen. Then I'm curious. Then I'm interested.

I listen to everything he said. Even with the discouraging, I keep asking him questions about it. He looked at me, and sees me full of curiousity, he knew that I'm interested in it despite the bad news he told me.
Later he asked me to download the required trading software. After that, he told me to mingle with the thing, and train myself with it to learn basics. I start with BUY/SELL, I deposited 5000USD demo account. I doubled that amount within a month. Quite impressive for a n00b lol. Then everything started to go south, I burned my demo account countless times failing. Ahahaha, I feel so depressed because I don't understand how the market work.
My mentor came to my house, provide me with face-to-face tutorial. I listen, I understand but I don't know how to apply the knowledge. Well in forex, you have to familiarize yourself with the system first, this is normal. Learn how the market work, price movements and chart pattern. Then everything he told me start to make sense, piece by piece like a jigsaw puzzle.

You can not to NOT LOSING at all. There will be always losses, but you CAN minimize the loss with correct planning.

Rule of thumb, always start from demo account. It's like training yourself before the real game.

Right now, I can say I've reached a higher level of forex trader(though with demo account). I became constantly profit although sometime get several losses too. The most important, my account still get plus in the end of the months. To reach this level, you must know several levels of forex trader first. Below I share to you about Five level of Forex Trader. Where are you now? You can measure yourself by reading the description of each level.

5 Level to become Expert Forex Trader

Level 1 : Beginner

When you start trading for the first time, you are on this level. You just become acquainted with forex. You think this is a good way to making money and you think that you will be millionaire in short of time.
Unfortunately, just like when you start your business for the first time, you will have a lot of challenges. You may take a couple of profit, and you think it is easy to make money on forex. Then you risk more money. That time you will face price moves up when you sell, moves down when you buy. This is very depressing. You take position of trades and it always turns against you so you reverse and it turns again. You will take revenge and doubling up your position every time you trade. This time you will experienced margin call soon. You will experienced this level for a week or maybe longer. Sometimes beginner never learn and keep on this level until couple of months.

Level 2 : Novice

This is the level where you already realize that forex trading is not as easy as you thought. You will realize that you don’t have skill to generate profit. Then you start to read website, forum to learn more about Forex. You buy several ebooks and trading systems to search for holy grail. During this time you will try from system to system. You will add a lot of indicator on your chart and believe that there will be a perfect system to beat the market. You will familiar with Moving Average, Support & Resistance, Fibonacci, Stochastic, MACD, RSI, etc. You will try all the indicator and hope that there is a magic formula from the indicators that lead you to win. You will also test several automated system (Expert Advisor). You try to find the perfect entry of your trade based on indicators, but you still enter several losing trade, and you double your position again because you sure you are right. You will go to forum or community and trying that other traders make profit while you losing. You will reach the point where you think that all traders is lying. You assume that you know as much as they do. Why they can make money while you can’t. Then you buy some signals from signal website services, but they don’t work for you either. Then you try to find forex trader experts. Whoever the guru, you still don’t win because there is no replacement for screen time and you still think you know best.
This level can last for very long time, but in average traders will stay on this level about 3 years. This is the crucial level you must past before you go to the next level. If you still stubborn and you feel that you know everything, you will never make profit in forex market. This is the level when you are most likely to give up on forex trading.

Around 60% of new traders die out in the first 3 months of their trading. It is normal. If trading was easy we would all be millionaires. Another 20% keep going for a year. What may suprise you is that of the remaining 20% all of them will last around 3 years. And they will think they are already become expert in forex trading, but the fact is only about 5-10% will continue and go on to actually make money consistently.

Level 3 : Intermediate

On this level, you will realize that it’s not the system that making difference. You realize that its actually possible to make money with a simple indicator like moving average if you can get be discipline and implemented the correct money management. You start to read psychology of trading books and you suddenly realise that neither you, nor anyone else can accurately predict what the market will do in the next ten seconds.
Because of this revelation you stop taking any notice of what anyone thinks. You become an individual with your own method of trading You start to work just one system that you mould to your own way of trading, you’re starting to get happy and you define your risk threshold. You start to take every trade that your ‘edge’ shows has a good probability of winning with. When the trade turns bad you don’t get angry or even because you know in your head that as you couldn’t possibly predict and it it isn’t your fault. The next trade or the one after it or the one after that will have higher odds of success because you know your system works. You stop looking at trading results from a trade-to-trade perspective and start to look at weekly figures knowing that one bad trade does not a poor system make.
You have realised that the trading game is about consistency and discipline to take all the trades. You learn about proper money management and leverage and this time it actually soaks in and you think back to those who advised the same thing a year ago with a smile. You weren’t ready then, but you are now. The eureka moment came the moment that you truly accepted that you cannot predict the market.

Level 4 : Advance

You are making trades whenever your system tells you to. You take losses just as easily as you take wins You now let your winners run to their conclusion fully accepting the risk and knowing that your system makes more money than it looses and when you’re on a loser you close it swiftly with little pain to your account
You are now at a point where you break even most of the time – day in day out, you will have weeks where you make 100 pips and weeks where you lose 100 pips – generally you are breaking even and not losing money. You are now conscious of the fact that you are making calls that are generally good and you are getting respect from other traders as you chat the day away. You still have to work at it and think
about your trades but as this continues you begin to make more money than you lose consistently.
You’ll start the day on a 20 pip win, take a 35 pip loss and have no feelings that you’ve given those pips back because you know that it will come back again. You will now begin to make consistent pips week in and week out 25 pips one week, 50 the next and so on. This lasts about 6 months.

Level 5 : Expert

Just like driving a car, every day you get in your seat and trade, you do everything now on an unconscious level. You are running on autopilot. You start to pick the really big trades and getting 200 pips in a day doesnt make you any more excited that getting 1 pips.
You see the newbies in the forum shouting ‘go dollar go’ as if they are urging on a horse to win in the grand national and you see yourself, but many years ago now. This is trading utopia – you have mastered your emotions and you are now a trader with a rapidly growing account. You’re a star in the trading chat room and people listen to what you say. You recognise yourself in their questions from about two years ago. You pass on your advice but you know most of it is futile because they’re teenagers.
Trading is no longer exciting, in fact it’s probably boring you to bits like everything in life when you get good at it or do it for your job. You can now say with your head held high “I’m a currency trader” but to be honest you don’t even bother telling anyone – it’s a job like any other.