There’s no doubt that confidence in trading is a key factor for success. But how do you go about getting confidence? Is it something you can “GET”, or is it something deeper more illusive. If you tell yourself “I am confident, I am confident, I am confident” does that really make a change in your emotions when trading? If your experience is like most, the answer is “NO”!
So how do you become a confident trader? The answer lies in what I believe to be the single word definition for Confidence when it comes to trading. That single word is “KNOWING”. When you KNOW when to take a trade. When you KNOW where support or resistance is. When you KNOW the probabilities are 8 out of 10, 9 out of 10 times your trade will be a winner in one form or another, THEN you have confidence to take the trade.
If you are stopped out but you KNOW you can easily make it back….you have confidence to take the next trade. If confidence = knowing, then the next logical question is how do you KNOW? Know support or resistance? Know the probabilities? Know when to take a trade?
Knowing comes from UNDERSTANDING! When you UNDERSTAND, then you KNOW, when you KNOW, you have CONFIDENCE. Ultimately confidence is the by-product of understanding how the market works and how your method performs relative to your chosen market. When you begin to understand, then you KNOW what you are doing, and confidence happens automatically. It is the result of working with a proven trading method, then taking the time via study and real time market observation to see it work countless times. The result is you will begin to trust yourself, the method, and trust the market to work consistently within the realm of probabilities.
If you are not confident in you trading, it is not a “confidence” issue, it is an understanding issue, which leads to hesitation because you don’t know or trust the outcome of any given trade. Rules keep us safe. Rules make us money. Rules and your trading plan determine when, where, and how you will trade in any given moment.
Successful trading is built on a foundation of a proven method with solid rules that put the odds dramatically in your favor. Coupled with a trading plan that is personalized based on your daily monetary goals and risk tolerance, you have a base from which to work while you increase your level of understanding, expand your personal awareness, your KNOWING, and as a result, your confidence will grow daily while you reach your goal of becoming a successful trader!
If you are having challenges with your confidence and pulling the trigger when trading, contact us for a 30 minute phone consultation so we can talk about how we can help you break through your barriers to becoming a successful trader!
