How to develop confidence in trading? 3 easy tips
- Always focus on the process, not on a result. Many traders (especially beginners) are thinking all the time about getting rich, luxury cars, homes, etc. And they are missing the most important thing – they don’t focus on process, they don’t analyze enough, don’t work to improve their strategy. All the millionaires became rich because they were focused on their ideas and business. They are passionate about what they are doing. All the time they think about how to improve their business. Fortune is the result of being focused on the process.
- Practice, practice, practice. Experience is the best teacher. You can spend a lot of time reading books, articles and don’t get even an idea of how to profit in trading. Look through and study at least 20 charts each day to understand price action and movements better. It is good to start with a paper account. But believe me, trading on a real account is much different. As soon as you are ready, consider opening a live account with small investments. This way you will learn how to control your emotions. I think you know that psychology is key in trading. And by the way, following experienced trader and trading signals, can help you to gain knowledge and confidence. I think traders have something common with boxers. Don’t they? Boxers practice every day to be ready for a game that lasts 30 minutes or even less. Know why? Boxer has no idea how his opponent will try to knock him out. So, he has to be ready to react fast and has plan B. The same with traders – expect unexpected.
- Always think positive. Oh, I know it may sound silly. But still, it works 🙂 Thinking about failure is the way to nowhere. Even if you made a mistake or got some loss, stay positive, think about how to improve your trading. I know it’s difficult to handle negative emotions, but I have some stuff that always helps me. Don’t think about a negative situation, imagine it’s a puzzle and you have to gather all the pieces. This will way you will focus on process and ‘switch off destructive voice’ in your head.