‘’One important key to success is self-confidence. An important key to self-confidence is preparation’’--Arthur Ashe
There are no doubt that most of us traders and investors are still finding it difficult to deal with the pressure of the market. Especially when you are a Day-trader- there is always an urgent need for you to make quick decisions.
Still on the market pressure, do you think you can make that right decisions with a fearful mind? No. But rather, you could make a better decision if you have full confidence in your trades.
If one of the keys to a successful trade is self-confidence, are you ready to boost your confidence in trading forex?
Are you still struggling on how to boost or develop your self-confidence? Or are you still looking for specific tips discussing how to boost your confidence? Look no further, for you are on the right guide of learning.
Here, we shall be discussing on the effective ways to boost your self-confidence as a trader.
Firstly, you have to crawl, walk then Fly.
This might sound a little bit funny but it is one of the smartest steps to take, if you want to be successful in this business.
Forex trading is a very volatile market that requires your rapt attention. Remember, If you trade with hastiness, you might not know when the rule changes behind you.
For instance, you know that you are new in this business; your primary aim before investing into the forex business is to make profit.
You are fully aware of your inexperience and yet you devised a strategy to trade the market. After getting involved in the trade, you ended up losing, which now deflates your confidence.
Why you lost in the trade? Your loss is simply as a result of:
! Your Inexperience
!! Lack of Confidence
!!! Flying, when you are to crawl.
Forex trading is not a business of challenge, so, you are not competing with anybody. Why then are you risking your money?
Forex is a business with high speculation and more of probabilities which makes it more obvious that you start by crawling—understand the market, then you can walk and finally you can fly when you have gathered satisfied experience.
Next, you have to practice perfectly.
I totally agree with Mary Tyler Mooer—‘’ Take chances, make mistakes. That’s how to grow. Pain nourishes you courage. You have to fail in other to practice being grave’’.
One thing is sure; every profitable trader in the world today has gone through some vigorous process of practice.
I must be sincere with you; forex trading is not as easy as it sound. But it is very much achievable.
Let’s take for instance Michael Jordan-
‘’ I’ve missed more than 9000 shots in my career. I’ve lost almost 300 games. 26 times, I’ve been trusted to take game winning shot and I missed. I’ve failed over and over and over again in my life. That’s why I succeed.
The result of an in-depth practice is a natural phenomenon. It applies to every aspect of life especially in this business.
What happens, if you refuse to adopt an effective practice system?
#1 It lowers your self-confidence as you trade.
#2 It discourages and induces fear in you.
#3 You might find it difficult to discover and tackle your trading weakness.
#4 It hinders you from enhancing your skills. And lastly,
#5 You might easily quit forex because of your consistent loss.
And that is why it is advisable that you practice deliberately (Read more on deliberate practice).
What do you stand to Gain from adopting an effective practice system?
#1 You are reducing your imperfection as a trader.
#2 You stand more chances of increasing your confidence on trading forex.
#3 It enhances your trading skills and boost your trading moral.
#4 It clears your doubt towards trading.
Thereafter, you have to develop a positive outlook.
One obvious characteristic of confident and successful traders is that they have this attitude of looking at the positive or brighter side of things.
When you pin your minds on the positive side, you tend to achieve positive results.
However, one of the methods you can trust when boosting your confidence is developing a positive outlook. (Read more on positive thinking)
Next, you have to accept your loss.
I know this might sound a little bit insecure, but then, the fact still remains. One of the surest ways of enhancing your confidence as you trade is the ability to accept your loss.
I’m sure your mind must be rolling with questions like;
Is this why I’m investing into this business?
Why should I accept loss, when I almost lost my portfolio?
This alone will be whispering to your ear, revenge the market. Such inner voices are as a result of your emotions wish you must not listen to. (Read more on how to manage your emotions).
However, even traders who are seen as forex-icons, admits the fact that they sometimes make incorrect decisions.
So, don’t think that an incorrect decision are made by non- experts alone.
Remember that pride might deprive you from accepting loss, which can also serve as a mountain blocking your financial breakthrough.
You just have to accept the fact that whenever you make a wrong decision, your result will serve as a lesson to you.
In this way, your losses will serve as a medium of grooming your confidence in trading.
And finally you have to create your limit for overconfidence.
Overconfidence is akin to No confidence. The end product is common and it’s always bizarre. This is why you have to bridge your confidence from getting to its logical bound or limits.
One of the student’s learning about fx business asked his tutor. Why do you keep alarming the fact that overconfidence is deadly?
I thought you said we should develop our confidence. But now trader X has it beyond limit, which make him more qualified to trade more.
But the tutorial master said to him, young man, when you are overly confidence, in other words when your confidence level gets to your logical limits, you tend to lose your portfolio.
Because when you trade with overconfidence, your risk of trading is synonymous to having zero-confidence.
More importantly, you have to note that psychology plays a decisive role in this business.
Self confidence is the key to a successful trade; which is why you have to increase yours.
Fx trading is a complicated business. You have to be very careful when you make any moves. Please feel free to let me know if you have more tips on how to boost your confidence in trading forex through the comment box.