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.
What is overconfident ?
- Thread starter Martin Gaptil
- Start date
- Watchers 12
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
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
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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. 🙂
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.
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.
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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.
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.
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.
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.
Oh yes, that's much better to look at, lots size should be decided based on proper money management.
