Keys To Develop Natural Trading Self-Confidence Part 1 will give you a jump start on the first three keys elements to gaining natural trading self-confidence. Click here or in the video to get the details!
Introducing a new trader to trading is a very exciting experience. They have lots of great energy and excitement.
However after they lose a trade or two, the grandiose vision of trading is usually reduced and sometimes knocks the wind right out of a new trader’s sails.
One VERY DIFFICULT reality in trading is for a trader to be trading the appropriate size for his finances and skill level. Realize that every trader will experience losses and there is no way of knowing exactly when those losses will come.
If you are in a situation where you “need” to win, either financially or psychologically, that means you can’t risk anything. This means you believe that you can’t handle a loss.
Regardless of the activity, if you believe that you can’t handle the consequences of a failure, you will have no self-confidence in that area. This is unless you blind yourself to the possibility of failure which is dangerous, and unfortunately what many traders try to do.
A trader needs to cultivate the mindset that it is ok to lose.
How much money are you freely willing to risk? Be sure you are comfortable with losing it all before you put it on the line.
Another thing to keep in mind. If you don’t have capital, you can’t trade. So plan for the loss and set aside a reserve fund.
There is much, much more in this episode. Dig into it and start improving your natural trading self-confidence today!