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Making Millions with Trading Psychology


What determines an F1 racer’s success? Does it matter what the car is? It’s the car. The driver is responsible. It is the confidence of the driver around corners, and his patience against other drivers who are presenting a challenge. Similar to stock tradingview quotes and options, the traders make the difference. The confidence of the options or stock traders in their selected methodology, and their ability to remain calm in the face threatening price changes is what makes them champions.

They are also the main reasons why so many stock and options traders fail. They’re also the reason so many stock or option traders lose money.

Trading Confidence

Trading confidence is the mental confidence that every trader has. It’s trading discipline and confidence in your own abilities to execute trades will decide if you withdraw or deposit. Trading confidence allows every options and stock trader to be confident in their trading and stay with it despite the losses, knowing they’ll eventually win more than loses. The trading confidence is like a bank account that you can withdraw or deposit money into. Trading confidence is a bank account that you can deposit or withdraw funds from. If your trading is bankrupt or at zero confidence, you’ll find that every time you make a trade, it makes you hesitant. Your sleep will be disturbed and you’ll rush to exit trades as soon as danger appears, causing unnecessary losses. If this happens, you should go back to your paper trading journal and examine the manner in which you trade. Trading confidence can be bankrupt without breaking your account balance. And a trading account that is bankrupt will also have a failing trading confidence. In the opposite direction, whenever you earn money through your chosen trading methodology, deposit into your trading confidence account. You will feel happy and confident while placing trades.

Factors affecting trading confidence

Your trading confidence will be influenced by the money and type you are willing to invest. Trading confidence increases as you increase your ability to afford losses. Stock or options traders that can lose very little would have low levels of trading confidence. Each loss will take a large bite out of the trading confidence they’ve built up. It is not necessary to lose everything you have in order for your trading confidence to disappear. Some stock and option traders feel less confident to trade after their accounts have fallen by 30% while others reach the point of bankruptcy only when they fall by 70%. Trading confidence also depends on the amount of money available to you. Your trading confidence will be high if you trade with extra money that you do not require. Even if you lost all of that money, trading confidence may still remain high. Trading confidence is low if your money was borrowed and you have to pay it back with interest in installments.