Page 3 - Trading #101 Course – Part One: Trading Basics

TRADING #101 COURSE – PART ONE: TRADING BASICS /2017-10-06

He can adjust his trading systems to be more profitable in different market cycles and
can quickly determine which times frames and markets are best to trade to maintain
profitability. In other words, he can go from one winning trading cycle to another with
minimal “drawdown” between winning cycles and can move at lightning speed if
needed.

The master trader listens to and understands what the market is saying. He thinks of
the market as a friend and enjoys the challenge and the process of trading.

He is consistently profitable and represents the top 5 percent of all traders worldwide.
Individuals at this level have the skill and experience to earn significant net revenue on
a consistent basis. This is the level that most “get rich quick” advertisements claim you
can achieve instantly with little or no capital.
Profit zone: The “master trader” is consistently generating 10% percent profit on his
trading account every month over a period of at least 12 months.

2. Intermediate Level

The “intermediate trader” is moderately profitable on a consistent basis, but emotions
still get the best of him. He has developed enough skill to know what to do to be
consistently profitable. But, again, emotions still get in the way. He is not nearly as
profitable as the “master trader”, but consistent enough to acknowledge that trading
success is possible and realizes how important psychology is in trading.

Personal development is still needed. This is what keeps the intermediate trader from
being a “master trader.” The whole body is not yet integrated with the market and the
process. He occasionally has trading days where he feels and performs like a “master
trader”, but not consistently.

He has varying forms of anxiety that cause problems. Besides not being as profitable,
the difference between the “intermediate trader” and the “master trader” is abstract.
The difference is intangible or non-linear; it has to do with the “art” of trading. The
“trader’s mind-set” is not as developed as the “master trader’s.”

Profit zone: The “intermediate trader” is generally breaking even consistently in his
trading or generating a small profit consistently.

3. Novice Level

This category encompasses everyone else who is not making money on a consistent
basis for whatever reason—from beginners to those traders who “know it all” but still
can’t make consistent money trading in the markets. To get out of this category
requires work on trading skills, market knowledge, emotional exploration, and trading
practice.

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