SELF-CONFIDENCE

So, friends, today we’ll talk about overconfidence and its impact on trading performance.

Self-confidence is a type of emotional state. A fairly common occurrence among new traders, but professionals are no exception either. Let's look at two results that an overconfident trader can have:

- a tendency to overestimate the accuracy of information and the idea that he has;

- a self-confident trader tends to overestimate his professional successes (arrogance).

Less experienced traders tend to be more confident than professionals. This leads them to want to use large leverage, increase trading volumes and speculate more often, which, in turn, leads to larger losses.

Excessive self-confidence manifests itself when risks need to be reduced and not argue with the market (a self-confident trader acts the opposite).

Forex market research from 2019 has proven that limited leverage reduces trading volumes and improves a trader's average monthly returns.

A professional trader understands the specifics and dynamics of financial markets and does not argue with them. A self-confident newcomer is trying to prove the opposite to the market. For which he gets "bream".

Remember, friends, the market is always right and does not owe anything to anyone.

Don’t argue with the markets, constantly learn, study new materials and discipline yourself - then everything will be fine!

Good luck to YOU ​​and more “greens”, they have a lot of vitamins))