There is nothing that we do successfully that doesn’t require some degree of confidence on our part. No matter what we do, whether it’s driving a car, preparing a meal or trading forex, we need to have enough confidence in our abilities to do well. Here we are discussing the confidence that will help you become an excellent and successful trader. The tips will not only include ways to build confidence, but also how to maintain it and keep it going. That can actually be the hardest part, since as every trader knows, there are times when your confidence takes a hit and needs a boost to keep going.
Fitting Your Trading Style to Who You Are
Before you began trading, you spent a lot of time studying on your own and following gurus. You could mimic their trades and learn from what they did. But when you were ready to create your own trading style, it’s important that you didn’t go the precise route of your teachers. To trade successfully, you need to understand who you are, what your abilities are and how you make your decisions. Even if you have been trading for a while now, it’s worth your time to stop what you’re doing and make sure that your trading style is yours, and not copying someone else’s. Be sure that you are using the trading style that takes into account your unique characteristics.
Limit Your Scope
To reduce your risk and maintain confidence, it helps to focus on a few specific currency pairs. Each set of currency pairs behaves differently. As you study how they move and react to the market conditions, you can learn to trade them successfully. You can build and maintain a high level of confidence by being extremely knowledgeable in these specific areas. This is the opposite of those traders who try to trade every market every hour of the day. When you are too scattered, you lose focus, your confidence wanes and your results will suffer.
Don’t Let Yourself Become Over Confident
As much as not having enough confidence in your skills can hold you back, the same can be said for those who have too much confidence. When you are so elated with recent successes that you think you are some sort of a trading genius that can’t be stopped, it is time to stop. Take some time away from trading to look over your successes carefully, record them in your trading journal and learn from them. Remember that the market comes and goes in waves, just as your trading results do. The same trades that you succeeded with today can easily become tomorrow’s failures. Be wary of falling into this trap.
Expand Your Horizons
Once you have confidence in your trading style and in the trades you place, you can go on to further your knowledge of the market. Remember that you can put into practice everything you learn and all that you know, so strive to keep learning. Don’t be stopped by over confidence or under confidence!
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