Level 1: Baby (Enthusiastic Beginner)

At this stage, traders are usually in a period of enthusiasm for the first time to know forex. Usually traders at this stage is a new trader who knows forex, whether it’s from the internet, books, seminar workshops or from friends. In this stage, traders will assume that trading can bring tremendous profits and they will assume they can get rich quick from forex. All things about forex look so beautiful at this beginner stage. Things that often do not occur to the traders at this stage is a high risk factor of forex.

Many of the traders at this stage will start experimenting with trading. At that time, they will estimate price movements, in the absence of clear directions or rules of their trading, leading to speculation (gambling).

Some of the lucky ones will be able to make big profits in some trades. They start thinking that making money in forex is very easy. At that point, sometimes they will start doubling the position when entering the market and playing hajar while there is capital. Traders who suffer losses tend to double positions in hopes of turning back. But what happens is the greater the loss, until finally Margin Call.

And this can happen repeatedly and subconsciously can become habit and trading rules for a trader.

This stage will generally last for 1-6 months.

Level 2: Child (System and Indicator Finder)

At this stage, traders will begin to realize that forex trading is not as easy as they imagine. This is where they feel that their knowledge of forex is not enough. Next, they will start reading ebooks, websites, books as well as visiting forex forums. At this stage the trader will become a system hunter, indicator and robot. Traders will try to find holy grail (who do not know about the Holy Grail, read my article about Mental Holy Grail that makes forex trader can not succeed) and assume that which determines the success of a trader is because there is a magic system that can generate profits.

This is where traders begin to fill the full chart with various indicators and start to be familiar with terms like Moving Average, Support & Resistance, Fibonacci, Stochastic, MACD, RSI, etc. At this stage, traders will continue to move from one system to another while continuing to search for other trading systems. Traders will learn about how best rule to enter position based on indicator. Not infrequently you even buy some trading signal service from several websites. After dozens or hundreds of times trying different systems and nothing works, those who give up will say “Forex Trading is not for me”.

This stage is the stage that most spend a lot of money and time. This stage can last for 3 months to years. This level is the most important before you can go to the next level and there are only less than 30% who made it through this stage in the world of forex. If you are a stubborn person and feel you know everything, then you can never be a successful forex trader.

Level 3: Teen (Trader Starting Own Trading System)

At this stage, the trader already has trading rules and is consistent with his trading rules. Traders are starting to realize that there is no such thing as holy grail in forex. Therefore they begin to use rules that match their own psychology and trading style. Traders at this stage are also less likely to use indicators and re-use basic indicators such as moving averages on their trading systems. Most traders at this level also are not in a position based on emotion because they know they can not predict the market.

Those who are in this stage also no longer calculate the rate of return based on trades per tradenya, but calculate it in a period such as weekly or monthly. Here traders have started to realize that trading is about consistency and discipline. There are times when traders at this stage still like to impose a position even though it is not in accordance with the trading rules. Traders also like to watch charts for hours every day just to wait for floating plus or minus.

If you are already in this stage, you are close to the stage where you will be able to trade for living.

Level 4: Adult (A Successful Forex Trader and Trade for Living)

At this stage, traders will enter positions based on the system they use. They will do the cut loss as easy as they do take profit (really without emotion). The feeling of gaining 200 pips will be the same as when you get 10 pips. At this stage they also no longer enter a position that does not follow the trading rules. Traders here also do not see too many charts and only trade on certain hours only. They started to enjoy trade as a job.

Traders will begin to feel what’s going on in the market and know exactly what to do. At this stage, you will feel that trading is something that just ordinary even tend to be boring.

Based on statistics, some 80 to 90% of traders lose consistently for the long term during trading. Even a lot of traders who can not survive in the first year. Therefore I have a little tips for traders who have just jumped in forex. Can not be denied, the world of Forex is very adrenaline. This is what usually makes people lose common sense during trading. One of the most common is that traders assume that traders who can profit consistently are those who have the Holy Grail (a perfect system), but do not want to share. The reality is that trading is actually almost the same as doing business. In the business you have to take risks, get the benefits if true, lose money if wrong.

For that on this occasion, I would like to share some important points that may be used as a guide for you as a beginner trader can get away with at least in your first year:

1. Focus on building your initial capital. Do not take a high risk trading position. You will quickly lose money, plus usually beginners there is a sense of want to revenge at the time of loss. This is what makes you very quickly lose money. Along with the small gains, you will learn a lot.

2. Never lose more than 2% of your capital in 1 position.

3. Never use a paid service to learn trading, unless you know and you really know.

4. Find experienced traders and learn from them through real life and social media.

5. Never trade without a trading plan. A good trading plan is systematic (have clear positioning rules, clear money management and clear cut loss solutions when price moves are not as you wish).

6. Use your time as well as possible to always learn before you put a position on your real account. If you are lazy to spend time reading trading books or from online media, I advise you not to use your real account for trading.


By using our tools HOTEAFOREX you will find it easier to achieve what you want and make it easier for you to analyze and manage your money.

Due to the influence of the erratic currency market, often this will affect our psychological. Therefore it is very important to be tough and have high confidence when trading.

Basically, confidence is the ability to actively focus on better performance and avoid negative thoughts such as anxiety and fear. But with an ever-changing market and seeing loss when trading sometimes makes you unable to maintain your confidence.

1. Focus on the process

Almost every forex trader that I know chooses trading as his profession, and all it does to make it look like an office job that keeps earning money on a regular basis. However, focusing too much on the results of trading will damage your mental as a whole.

One thing to keep in mind is the market is unpredictable. There is no guarantee that you will win or lose. Everything is still a probability. Instead of focusing on the profit and loss results, why do not you put your focus and mind to make sure you are obedient and disciplined in your trading plan.

You should not focus too much on the outcome, but on how disciplined you are when trading.
Every time you follow the rules you make that’s the success story itself.

So reward yourself when you succeed in self-discipline waiting for the candle to close before entering a position or closing a position. You may not see the results right now, but in the long run, your discipline will turn into a consistent habit of making mistakes, which of course will result in consistent confidence and trading with consistent profits.

2. Exercise, Exercise and Exercise

Do you know the reason why boxing champion Manny Pacquiano spent his days practicing for a fight that lasted for about 36 minutes? Because only on the basis of maximal preparation, he develops self-confidence through mastery of ability.

Manny does not know exactly what his opponent will do to defeat him. But, having gone through a strenuous training, he has mastered the fundamentals of boxing ability, how his body moves, and how to anticipate when his opponent’s fist comes.

As a trader, you will not be able to precisely predict which sentiments are affecting and how the market moves. This means that the key to self-confidence and success is to prepare yourself every day until you know how you handle the various scenarios of the market that can happen.

3. Look at the bright side of everything

Ask yourself “From all the confident people you’ve met in your life, how many of them have a personality and a negative outlook” I’m sure the answer to that percentage will be very small, even non-existent. Successful and confident people tend to be personable and optimistic because when you focus on the positive, you tend to get positive results.

So, while feeling again unlucky, reflecting, eating all the ice cream in the fridge when you are in the middle of floating and big losses, keep thinking positive and you will be able to follow your trading plan correctly. Remind yourself, if you already have a properly tested trading plan and proper risk management, the average law will work and the profits will come.

One way to train this is by actively focusing on the things you do right with each trade, especially if the trade is moving against you.

– Review of economic data? Check
– Analyzing charts? Check
– Risk Restrictions? Check

By ensuring you have set up what you can and will focus on handling forex trades either profitable or loss will undermine your fear of loss, and will give you the confidence to pick up a valid signal and make a good decision.

As with developing your forex skills, trading with high confidence is easier to talk about than practiced and it will not work without hard work.

Demo Account is one of the stages in the whole process of becoming a consistent and profitable trader. Demo accounts are designed to help us become the trader we want without risking a single peser. Demo accounts also help us to improve discipline and stay obedient to the rules of risk management that we make. And most importantly, demo trading will give us experience in different market conditions.

Well the question now is when do you know that you are really ready to trade using real account? Here is a checklist where you can be ready when you actually answer “YES” to all of the following questions without any hesitation.

Do you trade regularly for 6 months or more?

This is one of the most important questions. Forex market is always changing, which means that a system that is quite effective on the demo will not necessarily succeed at 6 months later. Got a lot of experience to measure the dynamics of the market is the most important thing to make your account stay afloat.

Have you tried with other trading styles?

There are so many styles and trading systems out there. Are you really positive about finding the one that really suits you? Make sure at least to try all types of trading ranging from scalping, day trading, mechanical trading, etc. You must continue to survive on one system no matter how many times you get a profit or loss in a row. It’s important to understand all the options available in the market and find the method you think is most suitable before deciding to trade using a real account.

Do the Winning Trade Outcomes outweigh the Losing Trade for the long term?

If you have not made a profit on demo trading, then do not try to trade with a real account. Because live trading really is like a wild animal. Once you lose money in real money, emotions usually affect our decisions when trading. This causes us to get worse results. Make sure you consistently generate pip in the demo account for a long period of time before you start trading with a real account. I myself have a habit to test a system for up to 6 months in demo account, before implementing it in real account.

Have you recorded and analyzed every trade you made to improve your trading performance?

This is something that traders usually underestimate. Most traders do not have a tight enough to keep a trading journal. Recording and analyzing every trade you make gives you a lot of benefits.
And we come to the most important question of all,

Have you developed a trading system that really works for you?

Without a solid and well-planned trading system, your account will quickly go to bankruptcy. The plan of your trading system will help you avoid bad trades.

If you are still confused about whether to post a position or not, and you still often feel emotional when faced with several losses, then you should return to trade in the demo account. No need to be embarrassed, to trade on demo accounts until you are fully prepared. All professional traders do the same.

And if you still do not have a planned trading system, accurate and reliable. please use the tools provided HOTEAFOREX this, because the tools of our expert advisors have some advanced features in determining the analysis and manage your finances safely.