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ESTE’s 5 Stages of Learning

5 Stages of Learning Based on the “Be-Do-Have” Trading Model™

 

White Belt

Blue Belt I

Blue Belt II

Brown Belt

Black Belt

Unconscious Incompetence

Conscious Incompetence

Awakening Moment

Conscious Competence

Unconscious Competence

– you don’t know that you don’t know something

– you are now aware that you are incompetent at something

– you address that there is something wrong

– you develop a skill in that area but have to think about it

– you are good at it and it now comes naturally

Technical Skills

Technical Skills

Technical Skills

Technical Skills

Technical Skills

– None or Limited

– Learning a trading system or method

– Demo Trading or Live Trading

– Development of a trading plan

– Back testing

– Starts to be aware that something is wrong based on inconsistency of results

– Understands risks and uncertainty of trading

– Discipline is inconsistent

– Trades the plan

– Risk management, money management, and profit management are developed

– Trading system and trading method are developed

– Trading system is mechanical

– Trading methodology is part of ONESELF

Emotional Skills

Emotional Skills

Emotional Skills

Emotional Skills

Emotional Skills

– No self-awareness

– Level of Self-Awareness is limited

– Not congruent with trading

– Poor self-awareness

– Level of self-awareness is limited

– No control over emotions such as fear, greed, impulsiveness, trust, confidence, etc.

– Starts to be aware about ONESELF

– Emotional tools are available

– Development of emotional control

– Mindfulness is inconsistent

– Awareness of ONESELF

– Emotional tools are more important than trading system

– Starts to be mindful in most cases

 

– Full awareness of SELF

– Emotional tools are part of SELF

– Being mindful and consistently improves oneself

Beliefs

Beliefs

Beliefs

Beliefs

Beliefs

– I can get rich quickly

– I am overwhelmed by the information given

– I don’t know where to start

– I can get rich quickly

– I just need to find the “holy grail” trading system

– I know I can make the system better

– I can win with one system

– I now understand risk and uncertainty

– I can do this and I can improve my trading

 

– I am following my own trading system

– I understand risk and uncertainty

– I know that mindset is more important than system

 

– I choose to trade whenever I want to trade

– I don’t think, I just do

– I am one with the market

– I trade in the zone

Results

Results

Results

Results

Results

– No trading

– Major losses

– Occasional Wins

– Inconsistent trading

– Inconsistent results

– Frequent draw downs

– Periods of consistent trading

– Periods of consistent results

– Periods of poor results

 

– Long periods of consistency

 

 

– Trading takes care of the results

– Consistency is maintained