Confidence And Trading

As a trader your primary job is to follow your trading plan and execute your trades according to the outlined rules in your trading plan. Your trading plan is an important document that you’ve precisely created for your trading success. If you are still not profitable and also don’t have a trading plan then better off getting your trading plan in place first and start off trading like a professional trader.

If you already have a proven and tested trading plan it is logical to follow your plan but you may ask why I lost again because not following your trading plan again! The answer is simple and it is because you are a human being and not a robot and you get emotional and carried away from time to time.

Wasn’t the trading plan their in the first place to help you be objective and not emotional in the first place? True, but also to be able to follow your trading plan you’ll need to cultivate a proper trading psychology! The ability to following your trading plan and your psychology goes hand in hand.

It is very important to be aware of these emotional pitfalls that can tempt you to abandon your trading plan and hinder your trading career. We’ll discuss some of those here so you can get a better understanding of them and be prepared.

over-confidence:

If you are confident about your trading ability that’s a good thing which means that you know that by following your trading plan you will be doing well in the long run and more importantly you actually do it. The problem arises when the emotions takes over and you start violating your trading and money management rules already outlined in your trading plan and totally losing focus! If you over trade in hope of getting lucky and making it big in a short time period understand this that you may get lucky once or a couple of time but if you keep doing this it will form a bad habit which sooner or later can get you out of the business of trading!!! Be honest to yourself, you call yourself a trader then do as a professional trader do. Remember, you are into trading for the long run and you already know that. Just be happy with less and focus on building your capital up the right and safe way and you’ll have more.

Also Read: Building Emotional Intelligence In Trading: The Secret Weapon Every Trader Needs

lack Of Confidence:

Confidence comes from knowledge. Remember, we’re talking here knowledge but not mere information. Knowledge means information which has passed the test of experience. Therefore, just get the good education first and then practice and practice and the confidence will happily meet you when you’re ready. If you lack education and experience then what is the point of trading and how do you expect to make money consistently and be confident in your trading. The real problem, many aspiring traders are confronting is that they lack of true education and practice. See many people going around the circle spending even years wondering but still not achieving profitability in their trading!

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Related Guide: Why We Dont Use Demo/simulator Trading During Our Training Programs?