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How Long Does It Take To Become A Profitable Trader?

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How Long Does It Take To Become A Profitable Trader?

hey hey what’s up my friend so in today’s episode I want to talk about how long does it take to become a profitable trader so before I know I kind of give you the straight answer right I want to walk you through the different stages a trader would go through the first day is what I call the hyper newbie at this stage you don’t know what you don’t know so you study and devour and everything you come across where is it you know trading books blocks causes forums whatsoever you just you know des voeux everything that comes your way you study you learn everything from A to Z chat patterns indicators and whatsoever and I call this the hyper newbie because at this point right you are you’re pumped up right oh man I’m gonna be the best trainer in the world I’m gonna be the next champion trader I’m gonna be the next rocket wizard okay and uh this actually those those were the thoughts I I had right when I first started out I’m gonna be the next best trader trader I’ll do whatever it takes and in this stage the hyper newbie what usually happens is that you will end up blowing up a few trading accounts and that’s where you realize that the strategies the techniques right they are not everything because of risk management also plays a huge part and that’s where you progress on into stage 2 the risk guru the risk manager where you you know is that being careful with your trades are you risk you know 1% on each trade 2% on each tree always having a stop-loss all right managing your position size knowing you know that that you shouldn’t take too much risk on each trade so you become the risk guru and at this stage you know how to manage your risk you raise a fraction of your trading account on each trade but you’re still not making money you’re still losing money even though you have eradicate most of the large losses but the losses still come in and this is where you know you encounter the death by a thousand cuts right you don’t lose a lot but you lose small and consistently and when you realize this right that’s where you move on into the third stage the third stage is what I call the Lone Ranger at this point you know that risk management is important by the same time risk management is not enough because you also must have a trading strategy that works in the long run otherwise known as an itch right having a trading strategy that offers you an edge in the markets so at this point this is where you start to declutter so in the first stage you start learning everything from A to Z but at this stage you everything you start throwing out tools that you don’t use right no trying all the indicators throwing out the middle the trend lines or whatever whatsoever and you just leave with you only a few core trading concepts may be you know you could be going down the price action trading route maybe you got going down the systems trading route whatsoever you would abandon right 80 90 percent of the stuff that you have learnt and focus only on a few things so that’s where you really dive into your trading methodology this is where you start getting serious right developing a trading plan developing a trading system you start doing back testing forward testing to make sure that trading system right there you have develop actually makes money in the long run and this dish I would take quite a while and if you do make it right this is where we move on into the fourth stage where you become a business owner what I call this I call it a business owner because this is where you start scaling up right you start moving your trading account maybe from five figures to six figures then from six figures to seven figures this is where you start diversifying your trading so called source of income you start trading multiple trading system multiple trading strategies because you know that one trading strategy doesn’t work all the time so this is where you incorporate multiple trading strategy to diversify right your returns right to smooth vanina over time so your knowledge you know thinking like a business owner and you start scaling up and also to manage your trading psychology at this point because trading a five-figure trading account and a six-figure trading account in a seven-figure trading account the trading psychology that is required is vastly different because if you think about this right a 1% risk on a $10,000 trading account is like $100 per trade a 1% risk on a million dollar trading account that’s $10,000 but free so you can see that the trading psychology that’s required is vastly different the percentage risk is the same but a number of zeros right in terms of potential wins and losses right also adds on a few zeros behind so that’s where you need to have a level of your trading psychology be mentally stronger and to trade a large account and that’s where the fourth and final stage lies right where you start thinking like a business owner so now you might be wondering okay Reina so how long does it take for me to be a consistently profitable trader well that really depends on which stage you are in right now where are you at stage one or maybe you’re at stage two I have no idea so yeah so a rough guideline is that you know there’s a market wizard called mati Schwartz he said that you know he spent nine years studying fundamentals and he didn’t make money in the markets only in the ten years that he became a consistently profitable trader by relying on technical analysis so he took him like close to nine or ten years to become a profitable trader and back then when I was a prop trader right there’s a very root kind of like a rule of thumb right there they give you about six months to a year to prove your worth to prove that you can make money in the markets if by the timeline you don’t make it they just simply cut you out so I can’t really say right how long it’s gonna take you to become a profitable trader you really depends on how much time you spend right becoming a better trader which stage you’re at right now and how much you focus on the process okay so with that said right I hope you understand know where I’m coming from to understand which stage you’re at right now and what you can do right to progress on to the next stage or this is important you have to know where you are right now and what are some of the things that you can do right now to get you closer to the next stage for example let’s say you’re at stage two right now now you realize that you know you know what’s a risk management but you don’t have an edge in the markets so what can you do right now to get an edge in the markets it might be studying trading systems that have really been proven to work making tweaks to it so that you can finally write a double system that works or maybe you know incorporate a trading plan back testing it forward testing it to find out whether you know it works or not so that’s it I have come towards the end to the end of today’s episode if you’ve enjoyed it hit the thumbs up button smash it subscribe to my youtube channel and I will talk to you soon you

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