As a beginner trader, you will go through series of learning stages before you can become a successful trader. You cannot skip any of these stages as you go through these when you start to seek new knowledge.
Stage 1: Unconscious Incompetence
Before you learn alphabet, you are in this stage. You know how to speak, but you don’t know how to spell or what the words mean.
You are in the stage of “I don’t know what I don’t know.”
Similarly, you may have heard of Forex. You have some basic knowledge of what Forex is. But do you really know what Forex is? Do you know how to trade and why do you want to trade Forex?
In this stage, you are unaware of the lack necessary skills and knowledge in Forex Trading. You are confident that Forex is easy, you don’t need any help and you can easily earn money with it.
Stage 2: Conscious Incompetence
When you start learning the alphabet, you are aware as child, that you do not know what letters makes up a word and how to spell correctly. You start to question which letter composes the word.
Here, you have moved to another stage – “I know what I don’t know.”
In Forex, when you start to go through pages of Forex tutorials or even attended several Forex trainings, questions start to come to your mind. How do I trade Forex? What should I do to become a successful one?
Knowledge starts to pour in this stage. You are now constantly seeking ways to improve yourself.
Stage 3: Aha! Moment
If you remember Helen Keller’s story (The Miracle Story), her “Aha!” moment was when she realized the cool liquid flowing through her hand is called “water.”
This is the moment where all of the knowledge you have acquired during conscious incompetence starts to “click-in”. You start to put all those theories into action. You start to create your own system, your own trading plan. You learn about proper money management.
Stage 4: Conscious Competence
As a child, you constantly practice spelling out words and learning new words to spell each day.
In this stage, you are putting your trading plan into action. Mistakes made are reviewed and corrected. You constantly seek ways improve your craft.
You are not affected with losses. You take it just as easily as you take wins. You are not swayed by your emotions. You now start to earn money!
Stage 5: Unconscious Competence
After learning the alphabet and practice spelling each day, you as a child, can now confidently spell out words without the help of your teacher, parents or others. Whenever you hear a word, you unconsciously think of the letters that compose the word.
This is the final stage of learning – the unconscious competence.
You are now generating consistent results and trading effortlessly. You have formed good trading habits. Forex trading has become your second nature. You don’t feel overwhelmed with the currency price movements. In fact, just by glancing at the chart, you have an idea on your next course of action.
Unlike in the first two stages where you seek out expert advices, in this stage you now become the expert. Newbies traders are seeking your knowledge.