Trading in Six Stages: Survive It, Then You Can Earn Consistently

There are six stages of trading. Only if you can make it through the entire process do you have the right to talk about stable profitability.

The first stage is the pure gambler stage. New entrants often treat the market like a casino—only watching price up and down. They chase rallies, cut lows, and trade constantly. When they make a bit of money, they think they’re the chosen one; when they lose, they’re desperate to break even, with their minds full of overnight riches and all-in bets. In this stage, there’s no need to study techniques. The key realization is this: the market isn’t a casino. Trading without a plan and without rules is no different from slow suicide.

The second stage is the tech-obsession stage. After losses, they take “technology” as a life raft, going crazy studying candlesticks, waves, Chan theory, quant methods, and more. They constantly switch indicators and trading systems, fixated on secret techniques that can guarantee 100% profits. It’s not that the technology is insufficient—it’s that greed is too heavy. Technology can’t save your trading. Building a trading system is the right path. If your direction is wrong, the harder you try, the faster losses come.

The third stage is the system-awareness stage. They understand the principles but still struggle to execute. At last they realize they need a complete trading system, but because they’re impatient—afraid of missing opportunities—they enter the market too often, and are still repeatedly harvested by the market. They’re rational and clear-headed, yet their emotions run wild—this is the most painful stage. What blocks you is not the market, but yourself. At this point, you don’t need new knowledge anymore; what you lack is restraint and waiting.

The fourth stage is the system awakening stage. They start following rules, but occasionally break them. They can control most trading impulses, yet they still act impulsively and place orders on the spot. Usually, after one or two violations, they give back all the profits. They keep struggling back and forth between rationality and greed. Being able to move from chaos to disciplined majority is already a huge breakthrough. From there, stable profitability is only one step away: not compromising with yourself.

The fifth stage is the system execution stage. Discipline is everything. They fully recognize that execution ability is the core of trading. When a signal appears, they enter; when the signal disappears, they exit. No anticipation, no overthinking, no excuses—only calm execution. Profits gradually become stable, the mindset becomes more grounded, and rationality suppresses emotions. Discipline defeats desire. Not acting impulsively with your hands is true respect for the market. In this stage, the only enemy is arrogance and complacency.

The sixth stage is the “wu wei” stage. In your heart there’s no screen, in your eyes there’s the Dao. Trading becomes as natural as breathing. You don’t stare at charts in anxious anticipation—you read the market’s rhythm from subtle changes on the board. You no longer deliberately pursue profit; you only focus on doing each step well, and profitability is simply the natural result. Only by then are you a real trader—one who is practicing, not a gambler or a tech addict.

Overwhelmingly, most people get stuck for life in the third stage. They know they need to maintain discipline, but they can’t control their own hands. The market never lacks technology or smart people; what’s missing are those who can endure loneliness, resist temptation, and stick to the rules. In the end, trading is a contest of human nature. To refine human nature to its extreme is “wu wei.” Trading is never about copying answers—the core is judgment logic and controlling risk.
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