What is a Trader’s Conscious Competence and How to Achieve It?
Conscious competence of a trader is an important stage in the life of any trader. Everyone once began to learn Forex and made many mistakes that led to the loss of the deposit. At the same time, many of them gave up trading in the foreign exchange market, and remained at the lowest stage of their financial development. Only a few were able to reach such an important stage as the conscious competence of a trader. What other stages are there in the formation of a trader, you can find out by reading the article ” How to achieve the unconscious competence of a trader ” on our website.
What is Conscious Trader Competence?
Many traders when trading Forex forget about the most important thing – psychology. Everyone who first came across such a concept as Forex turns daily painstaking work into a gamble, which consists in the disorderly opening of transactions without observing money management, which ultimately leads to a drain on the deposit and complete disappointment in Forex trading. But over time, you begin to understand that it takes some effort to get the desired result. This is the most difficult period in the life of any trader, which can take from one month to several years in duration. But then the moment comes when you start to open deals only on the signals of your trading system. This stage is called “Trader’s Conscious Competence” and represents the period of a trader’s life,
What happens at the stage of a trader’s conscious competence?
At this stage, which usually lasts about six months, you rediscover Forex. You now clearly understand all the principles of the foreign exchange market, know how to find trends and patterns in Forex, learn to analyze the current state of the market and make a forecast for the near future. Of course, you still make many losing trades, but treat them not as your mistakes, but with the understanding that no trading system can be 100% profitable. Nevertheless, your strategy gradually goes to breakeven, and then begins to bring a small profit, which becomes more and more with each new week. You understand that you have moved to the stage of “Conscious Trader Competence”, when you enter the market only on the signals of your strategy, there are more and more profitable trades, and unprofitable ones do not unsettle you.
How to achieve conscious competence as a trader?
In order to achieve success in Forex trading and move to a new stage of the conscious competence of a trader, you need to constantly work on yourself and on your strategy. As you know, an experienced trader is able to make profit even using a standard indicator installed in the MT4 terminal, for example, a moving average. The thing is that, firstly, he has vast experience and “flair” of the market, and secondly, he knows how to control himself, not succumbing to excitement. For him, Forex is a daily hard work, not a gamble. There is no need to chase new indicators and buy super-profitable Expert Advisors. All this will turn into a heap of rubbish in the hands of an inexperienced trader. Only a great desire, constant work on your trading system and patience will help you achieve impressive success in Forex. Read also what isfree online Forex training and how it can help a novice trader.