When we start our journey in the world of trading the financial markets, we set up our accounts, fund them and start practicing trading.
Slowly (not always) we move into funded trading after achieving a modicum of success in a practice account. Many times it feels like one step forward and two steps back as we get accustomed to using actual money.
There are three stages we go through as we develop our trading skills; Strive, Survive, Thrive. These three stages of trading will vary in length of time depending on how much-dedicated effort we are putting towards this trading endeavor.
During the Strive stage of trading, we frequently lose more than we profit.
It is vitally important to understand risk management and keep our losses/ costs small. A good mentor is an important tool to guide us through these rough waters.
During the Survive stage of trading, we basically breakeven.
The profits feel great and we think we have this skill mastered and then wham!, there go our profits. But we have learned risk management and can survive long enough to work out our strategies so that the Risk to Reward ratio actually starts to work for us. Again, a good mentor can help shorten the learning curve in this stage.
Finally, we reach the Thrive stage of trading a much smarter trader and understanding that protecting our capital and profits is just as important as making the profits. Now our mentor and educator will help us refine our trading plan, our strategies, expand our trading streams of income and we can enjoy our new business.
Rob Roy, founder of WealthBuildersHQ, is the mentor and educator who can walk you through each of these three stages of trading, guiding you over the hurdles and broadening your trading horizons on your journey to building sustainable wealth.
Choose wisely when selecting the person to guide you in trading the financial markets.