How to deal with Overconfidence: The worst mistake you can make?

Discussion in 'Psychology' started by jinxu, Dec 3, 2013.

  1. No, I can assure you that overconfidence in real life is just as bad. If you think you can build a bridge over the Atlantic for $5 million, and you try it and fall flat on your face, as of course you will, then your reputation will be in tatters and you will be sued into oblivion.

    Of course, you can snow people for a while with the appearance of confidence. But then you can make a lot of money in trading by REALLY BELIEVING the bull market will never end. In both cases you do good for some time if you stay lucky, then you blow up.

    You seem to be confusing overconfidence with motivation, or genuine ability. What you want is rationally-based confidence - where you act and sound like you really know what you are doing, and so people trust and follow you, because...shock horror...you actually *do* know what you are doing. And how do you get to that position? Hard work, study, paying your dues for a while, ability, persistence, planning, focus on goals etc. This isn't rocket science.
     
    #21     Dec 9, 2013
  2. jinxu

    jinxu

    That's good advice that makes more sense. Thank you.

    Another question. How do you handle the boredom that comes with successful trading?
     
    #22     Dec 9, 2013
  3. ================
    Handle boredom? You could be friends with a female drama queen:D LOL

    Reading a good trading book [ + recording the co$t of an emotional/overconfident trade]or reading elitetrader may help wisely with boredom.:cool:
     
    #23     Dec 11, 2013