Overconfident

I believe that once the overconfidence arises in a trader then he will never be able to maximize his knowledge and profits.

overconfident actually not a bad habit , its a punishment' , nothing without it. not only in trading life but also harmful for real life.

Is a key to get doomed. Logic and patience on the other hand are the two keys for forex trading. Decisions based on logical facts and patience to wait for the result are very important to become a successful trader.

AliaDare posted:
Confidence needs to be controlled so that it is not overconfident. I calm myself by meditating when I make extra profit. That doesn't make me overconfident.

I also agree with you.

It’s good to be an optimistic person otherwise. But when it comes to trading, the more realistic you are, the better your trading career becomes.

There are so many opinions expressed in this thread that being overconfident does harm to trading. I would add that being underconfident also affects negatively on trading results. It is the same as in real life. The best way to survive is to be realistic, but it is easier said than done. The best way to decrease the influence of psychology on trading is to work out a trading strategy with the strict rules and understanding probabilities. Before making a deal, I believe, a trader should understand that there is no warranty that the price will go this or that way, but there is a probability which is always less than 100%. If a trader sees the indicators which say that the probability of this or that event will take place is high, a trader should react to this and do the trades according to information he possesses.

That is why it is important to have clear and accurate trading strategy in order to minimize the influence of emotions on the decision making process.