Step 1: The Zone

As many good books and traders will tell you, there is a place called "The Zone." This is not a fictitious place; this is when everything seems to go just right. Almost as if you can predict where the market will go. You are one with your charts and make almost all good trades. You have very little emotion and your small losses, if you have any, don't even faze you -this is where we all would like to stay; but for the new trader, if they are not very careful, is a precursor to level 2.

*A Hint for New Traders* Set a goal of 2-5% increase on your account and STOP trading till the next day, you may stay in "The Zone" longer.

-For all of you who didn't get that hint, lets go on to level 2.

Step 2: Euphoria.

After a great trading streak, the new trader gets excited -emotions are high, adrenaline is pumping, and all is well. Well not really... At level two the new trader begins to lose contact with reality and begins to think they are super traders and that nothing can go wrong -how wrong they are. This is when the new trader begins to have large losses. The fail to see on the charts what they once saw and don't pay attention to there own rules. Soon losses are greater than gains, and the new trader moves on to level three.

*A Hint for new Traders* STOP trading immediately and go back to the books, study, study, study. Do not under any condition continue trading at this moment. Take a break come back tomorrow and Demo a while. What ever you do, do not continue live trading! YOU WILL LOOSE!

-Now for all of you who didn't get the hint... lets go on to level 3

Step 3: Mission Impossible

At this level the new trader becomes desperate. They have lost many trades and just can't seem to leave the charts.

Depression is at the door. They begin to blame other traders. They blame the market. And even blame their cat.
The new trader begins to search the charts looking for trades -searching, searching, searching... And each trade made, gets worse. More losses are incurred, and the desperation gets higher -they continue to search for what they can not see.

Everyone can have a great trading day, but they will have a rotten day. It's grim... this grave depression generally takes the new trader on to level 4 -the last level.

*A Hint for new Traders* STOP! STOP! STOP! Why didn't you stop sooner. STOP NOW! DO NOT GO ON TRADING... THIS IS YOUR LAST WARNING. Take a break, go back to the books and study study study study!

Step 4: Forex Hell

What changed from the time you first looked at forex and saw so much potential for making money? At this level, the new trader throws in the towel. They quit. They hate the market, they hate their fellow traders, they blame the world for all their problems. They have lost their life's savings, mortgaged the house, and their family. It's the end of the road.

"How could it have come to this..."

*A Hint for new Traders* You may be cut out to be a politician. They don't listen to good advise very well either. And many times don't do what's best for their dependents.

Orginal context, "The Four Steps to Forex Hell" by silverone.
Illustrated by weatherman.