Trading is without a doubt an endeavor you need the confidence to face. Having confidence is a fuel when you are in need. It clears obstacles when you face them and provides essential focus. Confidence will accelerate your learning curve.
On the flip side, lacking confidence can be one of the most destructive traits of a trader’s mindset. When losses come, how will you re-bound and focus? What happens if you start your day with two, three, or four losses? Will you doubt your system, trading plan, or skill set?
Everybody knows that lack of confidence is destructive while having confidence gives us a greater chance for success. Although we know this conceptually or intellectually, very often our actions tell a different story.
So how do we build confidence in trading? What can we do to create an unshakable belief in our abilities? If we engage in specific things, will they help us form a foundation to profit consistently?
The answer is yes. You can without doubt build confidence in yourself and your abilities. In this article, I am going to share a method to help you build confidence. Will it be enough? I can’t be certain, but it’s a great place to start.
Success Builds Confidence
I am very proactive in protecting my mental capital and self-image. Having a strong self-image and a healthy reserve of mental capital will lead to increased performance.
With that being said, what do you think it does to remember your past successful endeavors? Do you think it builds up your confidence or brings it down? The question is rhetorical but I want you to begin thinking about this more deeply.
I’ve worked with thousands of traders over the years and one common trait among most of them is they are all good at something. Chess, poker, math, sports, and finance – you name it and they are likely to be good at something.
In our courses, we have well over 50 doctors, many of whom are surgeons. We have poker pros and tournament champions who want a transition and want to be in trading. I have a few traders on the NYSE or for some large prop desks while others are high-profile trial lawyers. Engineers, programmers, IT specialists….we have them all and the list goes on.
As a whole, most students who want to learn forex trading are intelligent, probably successful in their current field, and likely to be good in some skill. So how do we leverage this to build confidence?
A Method
One simple method you can use is to think about what you are already good at. Think about what you went through to get there, the obstacles you overcame, the doubts you faced, the hurdles you passed, how many times you weren’t sure you could be good at it. Yet despite all that, you became highly skilled at it.
Notice the confidence you feel to perform that skill or endeavor. Did you always feel the same way as you do now, particularly in the beginning? Unlikely. But you got there and now have a competent level of skill in it whether it is a skill, sport, job, martial art, musical instrument, work, or endeavor. This current experience and skill can (and should) be used for our trading process.
Hence, take some time to think about deeply what skills or traits you can do well. Think about it till it brings up a feeling of confidence to engage in that activity and do it well. Remember this feeling and apply this to trading.
Climbing Mountains
It is important to remember: all of you might at some point in your lives have broken through obstacles, and difficulties and gone past your doubts. Maybe these were small or were mountains, but every one of them we’ve climbed reminds us of how far we’ve come and what we’ve overcome along the way.
As I said, before, ‘Overcoming is the Currency of Success.’
Remembering this and rebooting our past successful experiences will help you build confidence in yourself. This is another method for protecting your mental capital and keeping a strong self-image.
Hence, take some time to remember all the obstacles you’ve overcome along the way. This should give you a feeling that you can overcome your inner obstacles to trading.
In Summary
Having confidence and a strong self-image are two of the most essential weapons for a successful trading mindset. Most, if not all of you, have had to overcome something in your life. And equally, most would be already good at some skill, sport, or work.
Think about your developed skill set in any particular field and what you can do with those skills. Think about what obstacles you had to overcome throughout your life. Notice how it makes you feel about yourself when you think of what you can do and what you’ve grown past along the way.
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 the unbreakable bedrock of confidence. Take some time to ask yourself what builds confidence in you which helps in trading.
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Editorial Staff at Chweya is a team of financial experts led by Vincent Nyagaka, with over 9 years of experience in finance, commerce, forex, crypto, and marketing. Started in 2014, Chweya is now among the largest free financial resource sites in the industry and is often referred to as Wikipedia for business.
