By Rob Colville on March 11, 2016 in
Now just from reading the title, I know what you’re probably thinking: “Winning is the best—and perhaps the only—way to become confident trading,” right? It’s more than likely the specific outcome most traders are looking for in order to really believe in their methodology, but ultimately, results aren’t all that bring about more confident trading…far from it, actually.
In fact, deriving confidence exclusively from results only makes traders feel as good as the outcome of their last trade, and believe me, you don’t want to trade that way, and fortunately, you don’t have to!
Instead, here are ways to promote more confident trading by fixating on the trading process, not the end results of each trade. Make these areas your focus and you’ll develop confidence faster, maintain it more easily, and perhaps best of all, trade with a level of conviction that will make each day more fun and less stressful in the process.
Confidence is never more important for traders than it is at the moment of execution. That’s when emotions are often at their peak, and when fear, anticipation, and even panic can set in and cause problems like faulty execution or even missed trades. But think about it: How are you supposed to be confident trading if you’re really just “winging it” or deciding your plans on the fly?
Instead, promote more confident trading through preparation, and enter the markets each day with a plan of attack for the specific market(s), time frame(s), pattern(s), and set-up(s) you’ll trade. Be committed to trading qualifying set-ups, and not forcing trades that don’t satisfy all of your requirements. The result will be more confident trading and less second guessing at the moment of execution.
Obviously, new traders don’t have a deep memory bank of past scenarios and trades to fall back on, but more experienced traders will, and that’s a valuable tool that can promote more confident trading. For example, knowing that a certain asset or currency pair has respected prior support/resistance before, or that Fibonacci retracements or a certain day, or time of day, has been favorable in the past, can prove useful, providing some added validation and empowering more confident trading decisions.
And, while no two trades are the same, and past results don’t determine future outcomes, being able to reflect and build on prior mistakes can have the same effect. Often times, successful, confident trading involves knowing what not to do, too. So whether it’s a pattern, price level, or relationship that didn’t work with your strategy in the past, having that knowledge and experience will only make you a more informed trader.
With that, everyone, from beginners to more seasoned veterans, should be soaking up their experience with every trade, not living and dying by the financial outcomes. Each trading day can offer invaluable, newfound information, so be a perennial student of the markets to continually grow your experience and pursue more confident trading.
We talk quite often about the solitary nature of trading, and while it has its advantages, it also means the trader must be accountable for their decisions, stay alert and engaged, and develop their own skills and confidence. Many tend to struggle with some, if not all, of those things, and that includes some of the world’s top traders, too!
See related: Trading Hangups That Bug the Pros, Too
So how can you overcome the effects of solitude? Well, one way is to take strides to make your trading less solitary! Here are some of your available options:
Mentor/Coach: Regular dealings with a trained professional will help keep you accountable for your actions, grow your knowledge base, and hone your skills to result in more confident trading
Fellow Traders: Join a group or attend a trader conference to gain valuable interaction and perhaps receive some useful validation about your ideas and ongoing pursuits in the markets and trading
Personal Network: Being able to share experiences with friends, a spouse, or loved ones will enable you to celebrate successes, work through tough stretches, and receive praise and support when it’s due. All can help eliminate loneliness and help derive newfound confidence in your trading
Make it your goal to be less fixated on profits and take these strides to achieve more confident trading. Lazy Traders, for example, enjoy benefits of personal mentoring and continuing education, plus a 24/7 community that imparts more accountability, empowered ideas, and timely, high=probability trade signals you can execute with confidence. Click below for complete information and to get started today!