Overconfident

Overconfidence can still have our mistake in terms of loosening our trading or say that we might ignore or miss something that is significant. Still, too much in Forex will be bad and will not benefit a trader and these includes in both having too much confidence and lack of confidence.

Can you recommend any ways to overcome such overconfidence? Any practical advice?

Confidence comes with experience and years of screen time. I would not say it is bad or good, but if you are confidante means you are aware of what you are doing on the market :)

There is a difference between confidence born of experience and awareness of one's own abilities and overconfidence because one is too arrogant to admit to themselves they need to be more careful, I think. Some people do suffer from the latter.

Overconfidence depends also on the way the trader thinks and acts in life. If you are that type of person - you do not consider yourself as Overconfident, but just as a confident person. So the people who think that they are confident need to think twice 😄

Overconfidence can kill a trading account. It leads to over trading and under analysing. To avoid over trading, you could record how many trades per day / week you normally enter and if you find that you are taking more than the average it is likely that you are over trading

TiffanyK posted:
Overconfidence depends also on the way the trader thinks and acts in life. If you are that type of person - you do not consider yourself as Overconfident, but just as a confident person. So the people who think that they are confident need to think twice 😄

I agree. Self-awareness is generally a difficult thing to achieve, especially for people who are overconfident.

overconfidence often equals arrogance which leads to failure

BonkersBit posted:
overconfidence often equals arrogance which leads to failure

That was my sentiment exactly. Arrogance severely clouds one's judgement - just as much as irrational fear does if not more.

The excess of confidence must not take place in any of our operations, we must be willing to sometimes go up and sometimes go down. The idea is always to persist!

Mohammadi posted:
Overconfidence can still have our mistake in terms of loosening our trading or say that we might ignore or miss something that is significant. Still, too much in Forex will be bad and will not benefit a trader and these includes in both having too much confidence and lack of confidence.

Both states are not appropriate in Forex.

Justice1024 posted:

Mohammadi posted:
Overconfidence can still have our mistake in terms of loosening our trading or say that we might ignore or miss something that is significant. Still, too much in Forex will be bad and will not benefit a trader and these includes in both having too much confidence and lack of confidence.

Both states are not appropriate in Forex.

Аnd where is the middle of these states?

the_who posted:

Justice1024 posted:

Mohammadi posted:
Overconfidence can still have our mistake in terms of loosening our trading or say that we might ignore or miss something that is significant. Still, too much in Forex will be bad and will not benefit a trader and these includes in both having too much confidence and lack of confidence.

Both states are not appropriate in Forex.

Аnd where is the middle of these states?

The middle is having self-awareness. Knowing what you can do, but also knowing what you are bad at and is not a good idea to do.

Mohammadi posted:
Overconfidence can still have our mistake in terms of loosening our trading or say that we might ignore or miss something that is significant. Still, too much in Forex will be bad and will not benefit a trader and these includes in both having too much confidence and lack of confidence.

We can never overdo the lack of confidence, this is bad even to handle. Time is humble enough to know that we can make mistakes so we have years in the market.

mlawson71 posted:

the_who posted:

Justice1024 posted:

Mohammadi posted:
Overconfidence can still have our mistake in terms of loosening our trading or say that we might ignore or miss something that is significant. Still, too much in Forex will be bad and will not benefit a trader and these includes in both having too much confidence and lack of confidence.

Both states are not appropriate in Forex.

Аnd where is the middle of these states?

The middle is having self-awareness. Knowing what you can do, but also knowing what you are bad at and is not a good idea to do.

I absolutely agree with you!

the_who posted:

Justice1024 posted:

Mohammadi posted:
Overconfidence can still have our mistake in terms of loosening our trading or say that we might ignore or miss something that is significant. Still, too much in Forex will be bad and will not benefit a trader and these includes in both having too much confidence and lack of confidence.

Both states are not appropriate in Forex.

Аnd where is the middle of these states?

Well, this is the key point to any professionalism: to ignore the human factor.

Justice1024 posted:

the_who posted:

Justice1024 posted:

Mohammadi posted:
Overconfidence can still have our mistake in terms of loosening our trading or say that we might ignore or miss something that is significant. Still, too much in Forex will be bad and will not benefit a trader and these includes in both having too much confidence and lack of confidence.

Both states are not appropriate in Forex.

Аnd where is the middle of these states?

Well, this is the key point to any professionalism: to ignore the human factor.

I think it's a better idea to take it into account and compensate for it when possible.

Before enter into the live trading you should practice demo trading. It wil;l help you to check your ability and also help to check your strategy and planning.

Confidence isn't the issue, its unjustified confidence and the actions made following. Some allow the arrogance of unjustified overconfidence to let them trade without a SL, trade without testing first the strategy, and so on. Ive met alot of traders in this industry, and the ones that usually have issues are the ones who are reckless with their accounts like a teenager first hitting puberty.

Pay attention to....is it confidence from a proven track record or arrogance? And someone stated above keep your professionalism which removes the emotions. The numbers dont lie....if you are not profitable you shouldnt be confident at your trading ability unless you are jsut trying to build commissions with your brokerr.