Since Wednesday was PI day (3.14), I thought I might update my PI trade article, says Dave Landry, f...
Building Your Trading Confidence
11/10/2009 12:01 am EST
Your level of confidence (not arrogance) as a trader will have a huge positive impact on your success. The more confident you are, the less time you will spend second guessing your decisions. The more confident you are, the more positive energy you will focus toward your desired outcome as well.
Confidence is based on two things: What you do and who you are. When a trade stops for a loss, your confidence becomes rattled. This is because confidence is based on what you do. When confidence is based on who you are and your ability as a trader, one who is prepared for all outcomes, be it a loss or a profit, remains consistent no matter what the result. You will feel confident because you took the loss as intended or because you closed with a profit. You will choose correctly in either scenario! This is because confidence is based on you.
Each time you correctly make a decision in trading, whether it is for a loss or gain, the more confident you will become with your ability to act accordingly to the current market situation in a manner that is appropriate. Your confidence is now based on your awareness as a trader (you), and not on failures, mistakes, or missed opportunities. Let me say that again: Your confidence is now based on your awareness as a trader, one who will make the correct decisions.
Help build confidence by reviewing your trades diligently in order to discover when, why, and how you chose to act during the time of the trade. It will help your understanding of the markets and of yourself. The more you choose to learn from each trade, be it a failure or success, the stronger and more confident you will become. This confidence will increase your flexibility in your decisions and your behavior. This flexibility will help create comfort in your trading. This comfort will feed your confidence, and the cycle continues.
Begin working on your confidence today. Believe in yourself and have faith in your abilities!
By Kurt Capra of Pristine.com
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