To receive new articles instantly Subscribe to updates.
Self Confidence in Forex Trading
Written by: PaxForex analytics dept - Tuesday, 27 June 2017 0 comments
One thing that many successful traders seem to have in common is a strong sense of self confidence that cannot be readily shaken even if they make a few losing trades. Furthermore, having a high degree of confidence in their abilities to adapt to new situations allows them to be more flexible as traders, which can be a very useful trait when dealing in the often changing forex market. Traders with a higher degree of self confidence also tend to be more adventurous since they are willing to make mistakes so that they can learn from them and turn the initial loss into future profits.
Such traders can not only often discover new ways to make money from the market, but they are willing to take the risks necessary to do so. On the other hand, having low self esteem and a lack of confidence in your abilities as a forex trader can impede successful risk taking. A low degree of confidence can ultimately lead a trader to affirm this mindset by losing money. A trader’s confident and disciplined mindset is perhaps the most significant determinant of their success as traders, and accounts for as much as 80% of their success potential, according to some professional estimates.
The market is a minefield, and a lack of confidence can put a serious dent in your trading performance. Having low confidence often causes traders to develop problems pulling the trigger, anxiety, stress and serious
mental pressure when faced with entering, managing and exiting trades. You will never make money as a trader if you’re trying to trade from an unconfident mindset that causes constant problems like these, so if you know you have any of the symptoms just mentioned, it’s time to take a step back and get your act together, or stop playing the game all together.
The question is frequently asked how long it takes to get to consistent trading profitability. For some people it will happen relatively quickly while for others it will take longer. How long it will be for you will be impacted by things like the time frame you trade and your personal base risk tolerance. Don’t try to compare yourself to others. Go at your own pace. If you have the commitment to doing things the right way, to developing as a trader, and to being prudent in your actions, you will eventually get to where you can trade confidently.
Sometimes, we need to just remember our strengths, inner resources, and wisdom we’ve acquired along the way. Sometimes just noticing those things will remind us of our capacity and our potential. This is just one method you can use to build up confidence in trading. It should be noted that there are other crucial methods you can be engaging daily to build unbreakable bedrock of confidence. Take some time to ask yourself what builds confidence in you which helps in trading.