From Unconsciously Incompetent to Consistently Winning Trader.

My trading coach once explained to me that there are 4 stages to learning a new skill, in this instance, to learn how to become a consistent trader.

The 4 stages of competence, is a model based on the premise that we are unaware of what or how much we know (unconscious incompetence), and as we learn, we move through 4 psychological states until we reach a stage of unconscious competence.

By understanding the model, traders can better identify their learning needs and develop their learning objectives

1. Unconscious incompetence — when you’re doing something wrong and you don’t know you’re doing it wrong. During this stage, you lack the skills, knowledge and capacity to do a certain task perfectly. Traders in this stage are usually just like gamblers at the casinos.

2. Conscious incompetence — when you’re doing something wrong but you know you’re doing it wrong. The phase of conscious incompetence starts when you develop consciousness about the things you do not know. In this state, traders plant themselves with hopes and aspirations.

3. Conscious competence — when you’re doing something right but you have to consciously focus on doing it the right way. Consciously competent traders dedicates themselves in the improvement of the craft by undertaking repeated practice by following their trading plan and the process.

4. Unconscious competence — when you’re doing something right and you don’t even have to think about it. At this stage of the learning process, a trader becomes consistent on his newly acquire skill and to be a consistently profitable trader.

It's crucial to know in which stage you are in order to progress, don't lure yourself thinking you know everything. Its not enough to know, you also have to apply what you've learned.

You might wonder in which stage I am? To be honest, I'm only at the end of stage 2 and the beginning of stage 3. I started my career as a fashion photographer, and long term Blue Chips investor. Technically, trading is still very new to me. I am conscious that I still have lots to learn, understand and apply. But I'm happy, knowing that I'm taking steps towards my goal.

VTL