Trade with Confidence – Most Powerful Tips to Boost Your Results

Trading psychology

Trade with Confidence
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If you want success in trading, it is essential to trade with confidence. It is as simple as that and there is no way around it. Confidence is something that you need in every aspect of your life. You need it as a professional irrespective of which profession you belong to. And trading isn’t an exception. You need to trade with confidence to excel in trading.

In fact, it wouldn’t be wrong to say that confidence is more important in the trading arena. Why so? Because in this arena, literally, everything is your opponent. The market, other traders, and even you are your own opponent in the trading arena. So basically, you are up against a huge force that always tries to pull you back. But it is the confidence that makes you excel and empowers you to taste the fruit of success. 

So, you need to take your confidence to the next level to transform your trading. However, it isn’t that simple. Therefore, we decided to help you gain much-needed confidence to trade with confidence. And this article is going to help you a lot. Because we are going to share with you the most powerful tips to boost your trading confidence and achieve success even beyond your imagination. 

Why do you need to trade with confidence to boost trading results? 

Before giving you tips to boost your trading confidence, it is important to tell you why do you need to trade with confidence to boost trading results. 

Trading is a very risky arena that brings lots of difficulties, uncertainties, and surprises. As you know, confidence and self-belief are the keys to success in such an arena. If you don’t have confidence, you simply cannot succeed. Similarly, if you don’t proceed with confidence in the trading arena, it will put a very serious dent in your trading endeavor. 

Let’s suppose that you don’t have enough confidence to pull triggers on time? In other words, suppose you cannot make timely trading decisions and feel a lot of stress and anxiety. So, what is it? It is low confidence that pulls you back. Low confidence makes you face serious problems when managing your trades. Simply put, you cannot succeed as a trader if you are also facing such problems. Therefore, you need to step back and enhance your confidence.

Another point to ponder is the right kind of confidence vs false and temporary confidence. False confidence is the confidence that you obtain quite easily. For example, you make a few good trades by chance in quick succession and feel like a trading guru. However, this success was just because of good luck. It wasn’t because of good trading skills and habits. Moreover, false confidence is always temporary and it is even more dangerous than low confidence. 

Conversely, real confidence is all that you need and good trading habits are prerequisites to real confidence. So, develop good trading habits such as proper trade management, patience, and discipline. The longer you do it, the more these habits will pay off for you. Consistently trading with patience and discipline arms you with some real trading habits. And that brings real confidence. Additionally, you feel peace of mind while trading when you know you aren’t relying on the magic of luck. Instead, you feel like you are a good trader who can make timely decisions and knows what he has to do. 

Top tips to trade with confidence

Here are a few tips that will surely help you to trade with confidence. 

1. Craft a well-thought-out trading plan

What happens to football teams that play games without a well-crafted game plan? They fail even to compete against their opponents. Let’s consider another example. Suppose you want to visit a beautiful area but don’t have a guide. What will happen? You will just wander around aimlessly and will not be able to visit properly. Similarly, you cannot trade with confidence when you don’t have a game plan that serves as a guide. Therefore, craft a well-thought-out trading plan.

A good trading plan covers almost all essential aspects of trading. It covers aspects like your trading goals, risk management, timeframes, and much more. Once you have such a comprehensive trading plan, it becomes easier for you to trade with confidence. It will never allow you astray and leads you to become a successful trader. 

2. Keep a trading journal

All market wizards and successful traders always keep a trading journal. It helps them assess, analyze, and evaluate their trading performance. Keeping a journal also enables them to evaluate their strategies and improve them over time. That is what you need to do. You can learn from your trading successes and failures when you keep track of your trading. Additionally, keeping a trading journal also empowers you to keep your cool when on a hot run.

Keeping a trading journal also serves in many other ways. For example, when you keep track of your successful trades, it makes you feel confident in your trading strategy. On the flip side, when you look at your failures, you can analyze what went wrong and how it went wrong. These are the questions you ask yourself and this is the right attitude for those who seek confidence. 

3. Avoid being overconfident

As we have already mentioned, you need to attain the right confidence. And overconfidence is false and fleeting. You may feel like a market wizard after a run of successful trades. However, it is overconfidence that may lead you to catastrophe. Therefore, it is important to look for the right confidence that can help you boost your trading results. 

4. Don’t compare yourself to others

When we read about highly successful traders who make millions, we start comparing ourselves with them. We start comparing ourselves with others, even friends and family members, and that is not a good habit. It makes you feel unconfident and uncomfortable. 

Instead, you should focus on yourself. It isn’t about others, it is about you. If you want to make trading your profession and make living through trading, focus on yourself. It is a useful way to build your confidence. When you trade with confidence, you begin to make money. Moreover, always remember that even the most successful traders once started from scratch. So, focus on your own growth as a trader and trade with confidence. 

5. Keep yourself inspired

Keeping yourself inspired is also a prerequisite to obtaining confidence and trading with confidence. You need to develop a sense in yourself that helps you think that you are good enough for this profession. This inspiration keeps you on the right path and you remain purposeful and engaged. Additionally, it also gives you the extra energy to keep on going even during difficult times. This is the way to do it as no one makes success easily. You also need to remember that if someone else can make success, so can you.

6. Approach trading as a profession, not as a hobby

Most unsuccessful traders approach trading as a hobby and never as a profession. They never give it the seriousness it requires. You need to remember that the trading arena is full of challenges, surprises, and uncertainties. Therefore, you cannot approach it without extraordinary seriousness and preparation. Moreover, approaching trading as a hobby and looking to rely on magic bits of luck is dangerous thinking. Don’t deny luck if you don’t want to but believe it or not, trading is much more than luck.

You need to develop your trading skills, enhance your knowledge, improve trading strategies, and much more to trade with confidence. AND this can only happen when you approach trading as a profession and not as a hobby. Only such a mindset can make you improve on every aspect of trading and that eventually elevates your confidence. 

7. Focus on process-oriented goals

Another useful tip to trade with confidence is to focus on process-oriented goals. In simple words, your goals must revolve around the process and not around the outcome. That means you should work on improving your trading process and that will eventually bring better outcomes. Contrarily, if you focus on the outcome, it may lead you to disappointment, overconfidence, or contentment. Whereas, you enter trading not to feel this way. You enter this arena to be successful and make living on a consistent basis.

That said, set some process-oriented goals that make you keep improving your process. For example, it will allow you to enter trades that suit your overall trading plan. It will stop you from entering a trade just because you want to enter. Furthermore, focusing on the process also develops in you good trading habits like patience and discipline. Thus, focus on process and forget about outcomes to enable yourself to trade with confidence. 

Russell Crane

Russell Crane

Russell is an Algorithmic & Technical Analyst Trader @ PatternsWizard.
His passion is to share his knowledge about TA, patterns & more. Why hope for your trading to work when you can precisely know the performance stat of every pattern?

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