If you look at a successful trader, what catches your eye the most? Certainly the amount of money he or she has earned, very attractive numbers. So what about before that? Do you see their effort and determination? It is an arduous process of training to get the results you see.
So today I am going to show you the stages that traders have to go through in order to be successful. Moreover, I’ll review the Jack Tar trading strategy that is storming the forex market, bringing me more than $500 in 1 day on Olymp Trade.
Without making you wait long, let’s go into the detailed article.
Review the Jack Tar trading strategy in Olymp Trade platform
Trading currency pairs: EUR/USD, USD/CHF.
Jack Tar trading strategy with 3 lines: SMA50, SMA100, SMA200.
Classic capital management method.
Order 1: The price went down from above and crossed the SMA50 and SMA100, then touched the SMA200. It was the signal to open an UP trade in the safest way.
Order 2: The price went up from below to surpass SMA50, SMA100, and then touched the SMA20. This was the time to open a DOWN order with a high winning rate.
Order 3: The 3 SMA lines were close to each other. The price went up from below to cross the SMA50 and SMA100 then touched SMA200. It was a great opportunity to open a DOWN trade.
Order 4: The price moved up strongly and decisively from the bottom. After crossing the 2 lines of SMA50 and SMA100, it touched the SMA200. Opened a DOWN order because it met the conditions of the Jack Tar strategy.
An unbelievable day with 4 wins in a row. I finished my trading, turned off the computer, took a nap and did some exercises to improve my health.
Stages of a trader
Most new traders never get past the learning curve for success. Some traders find themselves making money by luck, not skill.
Successful ones go through many stages in their development. This process has no shortcuts. It consists of the following 3 stages:
Stage 1: A beginner seeks to learn knowledge
How can a brand new trader with no knowledge of how the market works make money? Newbies believe that investors who make consistent profits have a “Holy Grail”.
At this stage, the new trader does not know anything or just very little about the market he is about to enter. That often makes them misunderstand and lose their own money.
Some new traders choose to jump right into trading with real money. They think that each trader will learn more by paying with his money during the trading period. No pain no gain, I suppose.
In my opinion, you’re better off learning as much as you can on a Demo account before doing it with real money. You will have to pay tuition to learn how to become a trader and how expensive the tuition is depending on your choice.
A serious novice trader would start educating himself through reading books, studying charts, taking online courses, learning how to develop trading systems. There are also many free resources online to learn the basics of trading. Let’s do it right from the start.
Stage 2: Reality check of trading strategies and information overload
After realizing that trading is not as easy as they think, it is the time for a new trader to consider giving up and moving on.
If choose to move on, he will try to learn as much as he can. But knowing too much begins to make him contradictory.
After understanding price action trading, technical analysis and risk/reward ratio, he starts choosing a trading strategy that is suitable with his personality. What timeframe is the best? What will its advantages be? When he has all the information he needs, the next step is to sift out the relevant one.
Stage 3: Build an effective trading strategy to earn profits
To go from a novice trader to a professional one, he sifts through all the knowledge he learns and chooses what is right to start creating his own trading system. It is the system that suits his personal timetable, risk tolerance, profit goals, personality and belief.
The pro trader has created a system that has positive performance over time. He trades it with the discipline and consistency. He doesn’t let his loss affect his emotions or influence his investment decisions. This is an integral part of any system.
Ultimately when he has the confidence in his system and the ability to execute it, he will follow the risk management principles. He sets stop loss so that every trade is only a small part of a chain. That’s why a loss doesn’t have any major mental impact on him. After improving times and times again, he walks his path on the way of a successful trader that can make money consistently every day and every time.
Do you know what stage you are in? Let’s reshape and know what to do in the current stage to move on. Wish you soon become a successful trader.