Phase 1 — Newbie trader- Overtrading, Grasping, No stops, Don’t want to be wrong.
Phase 2–Trader beginning to realize that stops must be placed. However, due to wanting to be right, stops are placed way away from the market so as to give tremendous leeway in hopes of being correct. Trading slows down but sophomoric trader still takes experimental trades without regard for bigger picture and the current trend.
Phase 3– “Socratic” with trader asking questions like “Wouldn’t I be better off…