Every trader is on the road from ignorance to expertise, hopefully improving along the way. This article helps to determine where you are on this road, and includes a link to a free trading maturity test.

The beginner trader is like a baby, he or she makes frequent mistakes, often falling over.  Unlike a baby, many beginners never grow up and mature.

The beginner relies on intuition, uses outdated trading tools, does not manage risk and has no money management plan or trading goals.  The beginner lacks insight into both the market and their own character.

The more experienced trader has gained some market understanding.  They have some goals, but may not be using the best tools, and sometimes make mistakes with their trading that prevent them from achieving their true potential.

The trading expert has achieved harmony with themselves and the market.  Personality flaws such as overconfidence and arrogance has been overcome.  Their trading tools are fine tuned.  Profits are inevitable and effortless.

I recently came across an interesting online quiz at Tradecision.com.  It takes around 7 minutes and has about 20 questions, and measures your maturity as a trader.  Incidentally, this company produces a top shelf trading tool for Windows called Tradecision, which I was involved in beta testing - they know their stuff when it comes to trading platforms.  Their tool is based around neural networks.

How did I do?  Well, I was not an expert, although I’ve worked professionally in a bank’s treasury, I was the next level down.  How did you do?

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Tags: maturity, trading mindset, trading psychology, trading quiz

This entry was posted on Saturday, May 3rd, 2008 at 1:28 am and is filed under Winning Mindset. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.