The path to trading or investment success lies within each of us. To reach the pinnacle, a trader or investor must progress through four distinct stages.
Sadly, most will never make it past the first two stages and are instead destined for financial destruction.
Stages one and two form what can be called the ‘beginners curse’.
Both these stages are litter with countless numbers of novice trader and investor corpses.
To get from stages one and two to stages three, and then four, requires a distinct change in your thinking.
Progression from stage three to stage four requires perseverance to master the skills and techniques developed at stage three.
The Four Stages of Personal Growth as a Trader or Investor
Stage 1 – Searching for hot tips
As a novice trader or investor you most likely begin your journey in the stock market with the insatiable desire for the latest ‘hot tip’.
You will buy blindly on a “friend’s’ advice” or the so called “insider’s hot tip”.
You have probably signed up for every “stock guru’s” newsletter, buying and selling on their every recommendation. Does this sound familiar?
People love receiving ‘tips’. It’s ingrained in our human psyche. The ‘hot tip’ contains two irresistible factors: the chance to be a person “on the inside” and the illusion of easy money
The novice wants to make money, they want the trappings that come with success, but many also want the easy fix, the so called ‘fast money’.
It’s an unfortunate fact that many novice traders and investors never progress beyond this point.
Stage 2 – Searching for the ‘Holy Grail’
Some traders and investors eventually realize that “hot tips and stock guru’s” are not the answer. They are smart enough to realize that following a friend or stock guru is not the answer and it’s never going to give them the knowledge, skills or wealth that they aspire too.
The beginner soon realizes he/she needs to further their own knowledge and skill so they are capable of making their own decisions. It is at this point that the trader or investor progresses to the next stage of personal growth.
You move on from gurus and hot tips to the search for the ‘holy grail’ of trading or investing. This search takes you through book after book, seminar after seminar, and strategy after strategy.
You become trapped in an endless circle, continuously jumping from one trading system to the next.
This is known as the ‘beginners circle’.
It is deadly from both a time and money perspective. It is a futile exercise, repeated over and over again. It is the endless search for a ‘holy grail’ that simply doesn’t exist.
It is a road that nearly every one of us has, or will venture down at some point or another, as we search of that perfect stock trading system.
Unfortunately, there is NO perfect stock trading system.
In fact, I would be very cautious and sceptical of anyone claiming to have found the foolproof trading or investment system. It just doesn’t exist.
What I can tell you though is that the holy grail of trading and investing does exist, but it’s not a trading system, it is your mental approach to trading and investing.
This is the real ‘secret’ that separates the stock trading legends from the novice and intermediate traders and investors.
So, beware of the beginners circle. Stop searching for the Holy Grail of trading systems and start the discovery process of what truly is the holy grail of trading and investing.
In doing so, you will move on to the third stage of personal growth as a trader or investor.
This post is an except from the Free EBook “The No Bullsh@#t Guide to Achieving Profitability”
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