Improving Trading Confidence

You probably wonder all the time how to have more trading confidence and trust in your abilities. "Be confident!" is probably what you get all the time from everyone when you're asking for advice. Want to know how to be more confident? There’s an easy answer: Don’t. Yeah, it’s a trick question.

Trading confidence and trust

Everyone constantly makes us believe that self confidence or self esteem are the answer to everything. They are not. In fact, research proves that it’s the cause of problems rather than improvement. It creates false trading confidence and trust, which makes us narcissistic and leads to making bad trading decisions. So you don’t need more self-esteem. You need a system that helps you feel confident based on data. Sounds more reliable than just tricking your brain into a false feeling of confidence, right?

Give a trading strategy a fair chance

Everyone uses trading strategies these days, but few people manage to make them profitable. You need to give a strategy enough time and testing on live markets with real money, to determine if it works. Strategies generally work, so if you follow the instructions and stick to the rules, you can make them work. If you've done all the demo testing and they work then, then they should work on live markets too.

Even if a strategy seems to stop working, first check if you are not doing something different. You'll have the data, so just dive into that and figure it out. The strategy didn't change and most likely the market didn't completely change overnight either. 

Pick a strategy that gives your trading confidence and trust

Picking the right strategy is half the work done. If you choose a strategy that only gives you a 1:1 win percentage of 60%, you need to be aware that you will run into quite a few losing trades. Good for your trading confidence and trust? I don't think so. So pick one that will give you a high percentage of winners. That will definitely boost your optimism.

Final words

Picking a system as described above, will help you deal with your confidence and trust, but it will never be completely removed from your trading. Discuss psychological things like this with your mentor. Education will also and trading in a team will also help you deal with it. And besides those will also help you find a strategy that suits you best. So you can reach the fullest of your potential.

Don't over focus on trading and looking at your charts. It will make you take trades you don't intend to take normally and that will lead to more losses than you should have.

#UrbanForex - Be conscious of your trading!