The Four Levels of Forex Traders

The Four Levels of Forex Traders

There are four levels of forex traders, new traders start at level 1 and progress to level 4.

Level 1 - Unconscious incompetence -- You don’t know that you don’t know, you don’t know enough about the spot forex to ask someone with experience good questions. You are staring at indicators and they make very little sense. We were all there once. You are in the first grade of the forex, swallow your pride and start learning and paper/demo trading.

Level 2 - Conscious incompetence -- You are now absolutely positively sure that sure that you don’t know how to trade the forex, read charts or trends, or have any mastery any of the techniques we use at Forexearlywarning. The realization and frustrations of needing to “do the homework” and demo trade to learn the forex is in front of you, it is somewhat of a make or break moment. You had better decide to enjoy the journey, because if it is work you will never get there.

Level 3 - You make pips paper trading and trading with small amounts of real money like micro lots but you still get stopped out occasionally and have some lingering residual questions. It still doesn’t make complete sense but you have a lot of learning behind you and you can clearly see the forex opportunity in front of you and the potential. Reviewing certain portions of the homework lessons and continued micro lot trading is still necessary.

Level 4 - Automatic positive trades time after time, you have no emotion when you make a lot of pips and you can now laugh about it when you get an occasional stop out, your account is building and the future it very bright. The forex is a strong positive force in your life and part of your overall balanced life.

Make sure you clearly identify who you are. If you are seeking a trading partner be willing to admit who you are and you can learn the forex together with your partner.

Forex traders at Level 1 and 2 get taken advantage of with expert advisors, robots, terrible information on forex websites, scalping, 150 different technical indicators, trading methods not backed by logic, expensive forex training, weekend boot camps, expensive DVD courses, gurus and general forex nonsense which is everywhere on the internet.

The techniques we teach at Forexearlywarning are very different and there is a huge adjustment period. The information and resources of Forexearlywarning will allow you to get to Level 3 if you are willing to learn it and paper trade.

Being disorganized, lazy, taking shortcuts or not enjoying the journey will kill you. All you need is diligence and determination. These are the only two qualities you need plus some paper trading