Successful people tend to have an optimistic attitude because when you focus on the positive, you tend to have positive results. Does this hold true in trading?
Ask yourself this question, “Out of all the confident people you have ever met in your life, how many of them had a consistently negative outlook or attitude?” I’ll bet the answer is a very small percentage or maybe even none.Instead of feeling bad, sulking in the corner, and eating all the ice cream in the fridge when you’re in the middle of a massive drawdown, be positive and think of how you were able to follow your trade plan properly.
Also remind yourself that if you have a well-tested trade plan and risk management strategy, the law of averages will eventually work in your favor, and you will come out on top.
One way to practice this is by actively focusing on the things you’ve done right with every trade, especially if the trade is going against you.
- “Reviewed recent and upcoming economic data?” Check!
- “Analyzed the charts?” Check!
- “Limited my risk?” Check!
Like developing your trading skills, trading with confidence is easier said than done and won’t come without hard work.