Stages of trader development

Nowadays, there is plenty of information about trading. More and more young market participants want to test themselves in this difficult craft, and most importantly, to gain a foothold in it at a distance. 

But in order to get a stable income from trading on the exchange, it is necessary to understand where the trader is and in what vector he needs to move. 

To begin with, it is necessary to understand the basic principles of technical analysis and market mechanics. Under these definitions are levels and their context. Price always goes from level to level, from round number to round number. It has been, is, and always will be. 

In the stock and cryptocurrency markets, large cap stocks have long been traded by algorithms. Targets and their potentials are built into them. Bots automatically open and close their positions on round numbers. Hence the correct levels that are located on them are taken from here. After all, after the execution of a large order or when the opposite side is outnumbered, these levels entail strong movements. 

The mechanics of these movements is simple: the losing side covers losing trades and closes at stop losses. This causes a strong price movement. 

Once a trader has understood these subtleties of market mechanics, he already has an understanding of why certain movements occur. It is important! Without understanding, professional trading turns into a guessing game, which will not go far. 

Now it is necessary to build up your hand and consolidate the acquired knowledge in practice. In order to work productively, and most importantly, without damaging your nerves, you need to do it with a small deposit. Remember that it is impossible to teach a person to trade, he must do it himself. It is comparable to when chicks, which nobody taught to fly, but they saw their mother flying, jump from the cliff to soar in the air for the rest of their lives. 

Understanding the market is as individualized a thing as possible. No one will trade the way you trade. This is your personal instinct, which you have developed on your own. 

Now the trader is at the final stage, and all he has to do is to put all the experience he has gained into practice. In order to build a trading system correctly, you need to understand three things: what to trade? when to trade? and when not to trade? The answers to these questions will shorten the distance to stable trading in the plus. 

Remember that you should not be guided by other traders and their successes. Everyone has his own way and his own distance to profitable trading. Comparing yourself with others will only lead to unnecessary fluctuations and mistakes.