What is overconfident ?

Martin Gaptil

Trader
Mar 5, 2017
58
10
9
47
I think so many traders lose their money in Forex due to overconfident and face loss, I think we control but emotion and do trade very skillfully must sake stock on right and with proper market analysis. Please share your views here.
 

ashouq

Active Trader
Feb 21, 2017
167
14
34
34
Isn't it any good idea of preparing a proper trade management plan before getting started with forex trading and then stick to it.
 

renez

Trader
Apr 8, 2017
52
1
22
34
Being overly self-confident can make you lose your money. To be honest, I'm afraid of that too. But a real trader has to develop personal qualities that help in trading, instead of harming it.
 

JuliaB

Trader
Apr 20, 2017
15
2
19
There must be a measure in all things. It's OK to be confident as long as it doesn't make you take risky decisions and forget about an initial trading plan. It's essential to understand when the confidence ends, and the greed starts.
 

JimTatum

Trader
Jan 28, 2017
40
6
14
32
SanDiego
Hi friends,

Everyone has good and bad days in trading. Suppose if you are trading and you win all the 4 out of 5 trades. You become happy and get confidence. Next day, you want to trade but any strategies did not work. But you trade with yesterday's confidence and the trades failed because of poor market movement. This is overconfidence. Trade only when your strategies and techniques work. Otherwise leave that day and don't let your already getting profits in vain.

- Jim @ wetalktrade
 
Last edited:

ashouq

Active Trader
Feb 21, 2017
167
14
34
34
Overconfidence and emotions simply ruin our trading so better set them aside and trade with proper analysis.
 

SweetPrincess

Trader
May 9, 2017
117
31
24
43
Over confidence will not benefit you through your trading. Yes, we must be confident in our trades and in our trading plan and skills but do not make it "over" for it may lead you to losses or worst, may burn out your account. We must be well prepared physically and emotionally before going in to live trading so that we can achieve our goals in this business. :)
 

ashouq

Active Trader
Feb 21, 2017
167
14
34
34
Excess of everything ends up ruining any business and even if we start over trading we will for sure blow up our accounts with in no time. Better to make some proper trade management plan and then trading according to it by keeping all other elements like emotions etc out.
 

Megamind

Active Trader
Jan 14, 2011
12
0
37
Some time ago I convinced myself that I can make money in any market at any time. I think it fits the description "overconfident" and yes, I paid dearly.
 

renez

Trader
Apr 8, 2017
52
1
22
34
I agree that many traders might start feeling greedy. But I overcame it immediately after I've failed a deal because of greed.
 

ashouq

Active Trader
Feb 21, 2017
167
14
34
34
Greed, fear and any other emotional issue leads to blowing up account within no time, better keeping our emotions out of the trading if anyone wishes to earn money from forex.
 

brad blash

Newbie
Sep 13, 2017
4
0
1
32
I think when a trader earns a huge profit in maximum of its trades and lead to successful trading sometime it happens that the trader might get overconfident and takes a huge risk which may lead to great losses sometimes.
 
Last edited by a moderator:

Ary Barroso

Active Trader
Jul 9, 2017
908
71
39
35
I see, few traders don’t use stop loss trading tool here, I seem this is the best example of overconfident! Fear and overconfident both are handful! By the way, I am confident about my success but not overconfident.
 

ashouq

Active Trader
Feb 21, 2017
167
14
34
34
Stop loss is a great tool to avoid more losses and those who uses it take control of cutting their losses in start rather than to loose completely in my opinion.
 

Ary Barroso

Active Trader
Jul 9, 2017
908
71
39
35
Stop loss is a great tool to avoid more losses and those who uses it take control of cutting their losses in start rather than to loose completely in my opinion.

So true, initially I avoided SL as a result I have such a bad experience in my 1st year of trading! And right now I don’t take more than 2% risk & always use SL and trailing stop; as a result now I don’t face any unexpected result.
 

Leo Wilson

Trader
Apr 18, 2018
20
3
9
Really good thread to assist others to overcome over-confident in trading.
Overconfident is something that we look beyond what is acceptable level, for that led us to miss out the potential opportunities. Always guilty and regret in that.
No doubt confident is critical and needed as role of trading but what some traders or we do is that we trade larger position sizes than we used to and eventually, we get into trouble by our over-trading behavior.
The best way to overcome this is to avoid greedy, trade like you used to (in case if you made more than enough, then trade little higher, instead of jumping into bigger sizes). And never miss stop loss which also helps to avoid overconfident.
 

Ary Barroso

Active Trader
Jul 9, 2017
908
71
39
35
Really good thread to assist others to overcome over-confident in trading.
Overconfident is something that we look beyond what is acceptable level, for that led us to miss out the potential opportunities. Always guilty and regret in that.
No doubt confident is critical and needed as role of trading but what some traders or we do is that we trade larger position sizes than we used to and eventually, we get into trouble by our over-trading behavior.
The best way to overcome this is to avoid greedy, trade like you used to (in case if you made more than enough, then trade little higher, instead of jumping into bigger sizes). And never miss stop loss which also helps to avoid overconfident.

I think, we traders need to set our trading lots size based on proper money management; no doubt small lots are much handy than aggressive trading lots size.
 
  • 👍
Reactions: Leo Wilson

Leo Wilson

Trader
Apr 18, 2018
20
3
9
I think, we traders need to set our trading lots size based on proper money management; no doubt small lots are much handy than aggressive trading lots size.

Oh yes, that's much better to look at, lots size should be decided based on proper money management.