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.
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.
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.