Building Confidence...

Discussion in 'Psychology' started by zmostatabi, Nov 22, 2005.

  1. What is the definition of confidence? I define confidence as positive thoughts, feelings and actions reflecting your self-belief and expectations of your ultimate success. Success is never guaranteed, but self-doubt and negativity can ensure failure. When you believe in yourself, you move away from harmful distractions such as anxiety and fear, and you move toward a more effective performance focus. Today we'll take a look at how to make sure you're confident enough to survive the trading game.

    Aside from the obvious benefits, confidence also bolsters your internal security during trading slumps and gives you additional fuel to persevere through challenging periods. Self-belief promotes traders to create more ambitious performance targets, allowing for greater accomplishment. Traders who display low confidence tend to worry excessively about mistakes, lose focus on what's driving results, quit trading at the wrong times and get overly worked up about each new trade. Excess confidence can also be dangerous in causing a trader to overcommit capital and be subjected to too much risk when a position goes bad. So your goal should be to promote the internal confidence while still showing the external disciplines to prevent the ego from taking over the consistent execution of a trading method