How to Build Confidence as a Trader

Your level of confidence as a trader will have a huge positive impact on your success. The more confident you are the less time you will spend on second guessing your decisions. The more confident you are the more positive energy you will focus toward your desired outcome.

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 whether a loss or a profit, then you are consistent with yourself 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) 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 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 yourself. The more you choose to learn from each trade failure and 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.

4 thoughts on “How to Build Confidence as a Trader”

  1. Hi not a right here but wud like to ask question i am a swing trader but if at all a trader who wants to take trading as career what all he/she needs to what are he needs to practice what are markets needs to watch comm currency equity etfs n so on and for intraday what has to one keep in mind say for example 100 stock 99 sl 102 target multiple lots or in cash is this or any other way this shud be as a life long stargey kindly help me out in this

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