Improve Your Trading ConfidenceConfidence is the backbone of any successful trading experience. You will not be able to handle this risky endeavor without a proper dose of confidence at your side. If you want to excel in trading, you will have to fiercely battle against yourself, your fear, and the market.
1. Know your methodology and plan
Having a roadmap in itself will get you started off on the right foot and instill confidence before you get into the ‘heat of battle’.
There are countless ways to analyze markets with no truly right or wrong approach. The key point here is that you have a methodology, and a relatively simple one, as too much complexity, causes paralysis by analysis, an obvious enemy of confidence.
In addition to understanding your toolbox, whether it be technical, fundamental, or a combination of the two, you should have specific trade set-ups outlined that provide you with an edge or statistical advantage over time.
2. Use both winners and losers to build trading confidence
Success is the key element that drives confidence. There are no better arguments that can make you feel really confident than a winning trade, or even better, a series of winning trades.
If you’re lucky enough to keep your mind cool and not slip into overconfidence, it’s really important to reflect on your winning trades and take some notes. However, you should remember that even a considered trading plan may fail, so never believe that every trade that meets your plan’s criteria will work the same way.
Sometimes even some perfect trade setups fail. It’s just a part of an overall picture, so just accept it and move on. Learn from your losing trades, analyze what you did wrong, and use it as an experience, which you should try to avoid next time.
3. Remember what you are good at and apply it to trading
Think about what you are good at. Was your way to success easy and smooth? Never happens. You probably had to overcome some obstacles, face doubts, and pass through hurdles and uncertainty. Despite all this, you managed to succeed.
Remember that feeling of confidence you have while doing your favorite job. Did you always feel the same? Doubt it. But the experience you've got can definitely help you in trading. Using your successful experiences as a touchstone will help you to build confidence in yourself and apply it to trading.
4. Focus on the process. learn, trade, sleep, repeat
Markets are unpredictable. Don't get obsessed with the outcome of any single trade. Instead, put your energy into consistent and disciplined trading practice, which may eventually teach you to avoid mistakes and end up with a consistently profitable account.
Practice, practice, practice!
5. Fake it till you make it
Investing with confidence sometimes requires a “fake it till you make it” approach. Particularly in trading, you should learn how to act “as if” you are confident enough, even in the face of losing trades.
At the very beginning, it may be hard to fight your inner demons and defeat your strong emotional impulses. You’ll have to stand up and walk away from your computer without getting obsessed with your wins and losses. You have to learn to accept any outcome and go ahead.
In order to proceed, you’ll have to act like a “super trader” and believe in your trading skills.
In The End
Confident and successful people in general tend to have an optimistic attitude.
If you want to achieve good results, stay positive and never give up. Follow your own trading and risk management strategy and eventually, the number of winning trades will outnumber the losing ones.
Trading with confidence is easier said than done. However, it is worth trying.
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Confidenttrade
ONCS - Higher Time-Frame Analysis A quick video on Multi time-frame analysis and of how it help give us more confidence in the lower time-frames, where we will make our entries and exits. Happy trading guys! 👍
USDJPY FRIDAY ANALYSIS - THE BIG DROP 05/18/18
UJ formed an engulfing bearish formation on a key level 111.000. 4H created an evening star. Daily is forming a kangaroo tail on a key resistance level. 1H MA's crossed. Next week's bearish trend has formed. CLOSE all long positions at 38.2% PRZ. Short at minimum 38.2% PRZ with 3% risk. 10% risk at 78.6% PRZ.