Building Confidence

[PristineTrading 10]

Your level of confidence (not arrogance) as a trader will have a huge positive impact on your success. The more confident you are the less time you will spend on second guessing your decisions. The more confident you are the more positive energy you will focus toward your desired outcome.

 

Confidence is based on two things; what you do and who you are. When a trade stops for a loss your confidence becomes rattled. This is because confidence is based on what you do. When confidence is based on who you are and your ability as a trader, one who is prepared for all outcomes whether a loss or a profit, then you are consistent with yourself no matter what the result. You will feel confident because you took the loss as intended or because you closed with a profit. You will choose correctly in either scenario! This is because confidence is based on you.

 

Each time you correctly make a decision in trading whether it is for a loss or gain, the more confident you will become with your ability to act accordingly to the current market situation in a manner that is appropriate. Your confidence is now based on your awareness as a trader (you) not on failures, mistakes or missed opportunities. Let me say that again . . . Your confidence is now based on your awareness as a trader, one who will make the correct decisions.

 

Help build confidence by reviewing your trades diligently to discover when, why and how you chose to act during the time of the trade. It will help your understanding of the markets and yourself. The more you choose to learn from each trade failure and success the stronger and more confident you will become. This confidence will increase your flexibility in your decisions and your behavior. This flexibility will help create comfort in your trading. This comfort will feed your confidence and the cycle continues.

 

Begin working on your confidence today. Believe in yourself and have faith in your abilities.

 

KURT CAPRA

Contributing Editor

Instructor and Traders Coach

www.pristine.com

[steve46 12]

In my classes, confidence is built when students see me demonstrate skill.....

 

As the classes continue, these same students come to understand that with a little bit of effort, they can do the same things that they saw me do.....they learn that confidence comes with successful experience and competence.....

 

People who approach this profession knowing what to do, because they have seen it on a daily basis, become confident and actually look forward to each day's market open....because for them its not whether they will make money, but how much....

 

This is what a learning experience should be like....

 

Good luck folks...

Edited July 17, 2013 by steve46

[steve46 12]

Interestingly folks who have problems with confidence often seem provoked that others want to talk about it....I am guessing it must bring up bad memories...

 

Too bad.....its an important subject...especially for a profession where confidence is needed if one is going to take trades without hesitation....

[zdo 20]

Kurt thanks for a realistic article.

 

A few comments for beginners…

Most of the meme ‘confidences’ we see discussed are false ‘confidences’. Example: the ‘confidences’ built when students observe someone else demonstrate skill is self stroking and ultimately useless. Any ‘confidence’ engendered prior to repeated bhvrs and realistic observation of their results is just another cognitive psychological approach that really has limited value, if any… Basically, these fake ‘confidences’ will hardly help at all for one to persevere when a behavior doesn't supply immediate, obvious success...

 

DO NOT “Begin working on your confidence today” ! Confidence is one of those areas a trader is better off letting emerge on its own … instead of attempting to build ‘confidence’ explicitly. That is a losers game… Before the experience of success - which does engender emergent, not contrived, ‘confidence’ – there are many things to focus on besides ‘confidence’.

Kurt mentioned ‘who you are’ … one of the things you can focus on / be aware of / explicitly engender BEFORE you have successful experiences under your belt is ‘courage’… courage to start and restart in the complete absence of results and the emergent genuine confidence that will come from real experience…

DO NOT "Believe in yourself and have faith in your abilities"… every one of those beliefs you ‘make’ has a (usually completely unacknowledged) pole – which is ready to step in and be as strong operationally as the ‘good’ belief you made up.

Courage … to act despite the beliefs / in awareness of the presence of your beliefs - be they empowering or limiting – to act despite the fake “faiths” or lack of them

 

Noobs. drop confidence way down your list. …and if you look closely, you’ll see I haven’t really disagreed with Kurt at all…