Traders must be confident to trade successfully. Everyone must certainly have high confidence if you want to succeed in achieving something, including trading. Remember that other traders are your opponents, now, how will you be able to defeat them if you feel lacking confidence? Thus, you should strengthen confidence as soon as possible.
According to Forbes, low self-confidence will have a serious impact on trading performance. You will tend to hesitate when you want to enter or exit, feel restless, stressed or experience other mental stress. In such circumstances, it will be difficult for you to gain long-term benefits.
However, there is a difference between real and false confidence in trading.
You get the wrong confidence easily. You enter the market and happen to profit, then you feel like an expert in trading. This confidence will quickly disappear because then you will often experience losses rather than profit. You might gain profit previously was due to luck, not because of your trading abilities and habits that were carried out with discipline.
Real confidence is formed from good trading habits. The longer you trade according to plan, discipline and not emotional, the more your trading performance will appear.
From time to time, disciplined trading with a consistent trading plan will build self-confidence and will become a positive habit that consistently profitable.
Let’s look at some tips to strengthen confidence in trading:
Building confidence in your trading when making a profit
Every time you win a trade, give notes in the trading journal about the setup that you have done. You have to also write down why you believe the setup is the best.
However, keep in mind that even a good setup can fail, so you can avoid excessive self-confidence. A good setup means it has a high-profit probability, but it doesn’t have to be exactly correct.
Always improve knowledge and ability in trading
By always increasing your knowledge and ability in trading, your confidence will increase. Learning that knowledge does not mean trying a lot of strategies. But, rather improving the quality of the strategies you are currently using according to the knowledge you have acquired.
Be aware that losses are part of your overall trading results
Losses will always occur and can not be avoided. Once you remember this, then you will know that lose in trading should not affect your confidence. Real confidence in trading will be formed along with the positive habits that you build.
Read more: Over-Trading, Your Biggest Mistake!
