Becoming a professional CFD trader is the path that every trader wants to take. But unlike other claims that CFD trading is easy and doesn’t need careful thought and knowledge, becoming a professional trader actually requires a lot of work and patience. Other than that, you should follow these 5 steps diligently.
Step 1: Unconscious Incompetence
Believing that you will earn millions in trading easily is the first thing that you have to remove to become a professional trader. You are aware of all those claims that CFD trading and Forex trading are the fastest way to become a millionaire. Unfortunately, trading isn’t an easy path to becoming financially stable. If you desire to become successful, you need to work hard for it. You may encounter losses from time to time, but these losses shouldn’t overpower your gains. You must employ a good risk management plan to be able to do this.
Step 2: Conscious Incompetence
After some time, you realize that trading isn’t a game for kids. You have to work on some things to make more profitable trades. You are now starting to realize that you are incompetent and that you need certain skills and knowledge to earn regular profits. This is the period in which you become more conscious of the method you use to trade, with the ulterior motive to earn more. Then, you will realize that all those people who said that trading is easy are actually liars
Step 3: The Feeling of Eureka
Now that your mind becomes open to the truth of trading, you become enlightened and start to gain knowledge about the industry, the basics of trading, the trading strategies that you should use, the risk management tools and the trading psychology that is highly needed to make sound decisions in the market. You now realize that trading is all about consistency and discipline. You get to understand leverage and money management too.
Step 4: Conscious Competence
In this stage, you start to make trades according to your system. You are also more open to losses and start to accept that it is indeed part of trading. You let your profits run and accept the fact that although there are losses, it won’t overpower the gains. This stage is when you are conscious of your competence as a trader while continuing to learn more as you trade, gaining experiences in every win and loss. You start to earn continuously and even make big wins without involving emotions in your trades.
Step 5: Unconscious Competence
Now that you are more familiar with the market and very familiar with the price movement and everything in between, you do everything like an autopilot. You are at a level where you function correctly all the time. Then, you start achieving huge trades and huge profits every day. But this doesn’t make you so excited because you are used to it. You are in the stage where you already mastered handling your emotions and are a trader with a fast-increasing CFD trading account. People start to follow your steps and your trading signals. This is the final achievement you can have as a trader.