How to increase trading confidence

Build confidence as a trader is very important for long-term success. Confidence does not come from the results, and is acquired in the course of trade.

When we focused mainly on the results, we slim me: "This transaction that will be profitable or losing? Am I with the attitude to earn money today or do you ari this week?" This is placing trust outside yourself. This is what we psychologists call "external confidence."

Never know whether a transaction will be profitable or unprofitable. We never know how the market will develop during this day. The market may be in range or to make a strong movement somewhere.

We can never know what will take place the week. So we associate our confidence with external factors such as whether the trade will be profitable or not and if you win, we feel good, but if we lose we grieve.

One of the things that traders are struggling is that once they have three or four losing trades in a row, confidence and persistence are things that should have to help them to find a fifth deal.

The problem here is that they stick to what happened in the past, but this has nothing to do with what can happen in this or the next deal.
Again, look in the results, not the process of development and improvement of good skills. Real confidence comes from absorbing your ability to understand and market, as well as your ability to implement and manage their transactions.

So, I suggest you three tips on which areas to focus:

* One of them is to learn the technical side of the market and lay really hard on this in the first place than to start trading first and then learn, as most traders.
We want to reverse this process. We do this by studying the charts. We do this through many transactions using simulated trading. We do this by keeping a trading journal and description of all transactions watching and thinking where to make improvements to increase our success.
We really want to understand that while in practice must reach a competent level of skills. Once that happens, then start trading with small volumes.

* Open positions with a contract or if it is too much, use our example ten shares. No need to be the order of 500 or 1000 or 2000 shares. Just start small volume to targovate and get a sense of commerce and only then gradually increase the size of the position.

* The third thing you need to do is to understand the nature of trade. This mainly concerns probabilities. If you had three or four losses in a row and it is difficult to make the next deal is good to know that the next deal has nothing to do with what happened so far or the previous three or four transactions.

There is a paradox in probabilities, and this sounds like a paradox: In each transaction, you never know whether you win or lose, but after gaining experience and implementation of multiple system transactions show a positive expectation, we gain confidence that We are winning.
For example, if we have a 70/30 ratio between profit / loss percentage, where seven out of ten times the system won in any transaction, we will never know in advance whether it will be one of seven winners or one of the three losers but all 100 transactions, 70 should remain profitable.
Understanding the probability is very important. It represents control over what we can manage and is focusing on the process of developing good skills on "reading" of the graph and transaction management. This should be seen as a game - a probability game and each field is probabilistic field built on the process, not the results. Do so and you'll see that the results will start to fend for themselves.

 Varchev Traders