How did I stop doubting myself?
What makes the difference between a normal dude and a professional?
Confidence.
At some stage, it’s not even a question anymore.
We just know it.
Confidence plays a big role in our day-to-day job’s success or failure.
Look at football (soccer, suckers). A striker goes 2 games without scoring, and suddenly, he misses everything.
In trading, it’s similar. You lack accuracy on your first trade. Boom. It’s a loss. Because the vast majority of people are over-leveraged, you’ll feel that loss more painfully than it should.
Your second trade is unlucky, and the price goes straight to your stop loss. Such a shame. You’re now 0/2.
What should have been a great day is turning into something very different.
Nevermind, you take a little break and come back fresh. Revigored by Rocky Balboa’s best comeback song “The Eyes of the Tiger”, you’re thinking to yourself “Why not me”.
Slowly but surely, you lose control. When you wake up again, there’s nothing left. Margin called.
Game over.
Then, you change systems, and question everything from the moving average you’re using to the type of coffee you’re drinking.
If you experience a lack of confidence in one of these situations, I have something for you.
Pssst, follow me in the dark alley.
Each Monday for your first trade;
After a couple of days/weeks off;
After a series of losses;
(Surprisingly) after a series of abnormal winners.
I’ve been there. And I’m still there sometimes. Fear of losing your edge/lack of confidence will always be there. And I’m talking as someone who trades both discretionary and automated systems.
The first step is acceptance. And no, we’re not at an AA meeting.
Lady Jessica Atreides: I must not fear. Fear is the mind-killer. Fear is the little death that brings obliteration. I will face my fear and I will permit it to pass over me and through me.
The second step is to either reduce sizing or trade frequency until things get better. It’s a personal choice. This applies if you’re trading prop firms or your personal account.
Speaking of props, have you heard of the crazy promotion going on at Apex with my code GVXZJABB.
One of my favorite examples of this is Salsatekilla on Twitter. Crypto guy who did really well and applied this method. Learned that from him a couple of years ago.
The third step, and that’s the tricky part, is to, indeed, have an edge. That word everyone loves to use, yet so few understand.
For me, it’s *easy*. Even my manual strategies have a set of rules for which I can check what would be the expected average return per trade. I run this once a month.
Here’s an example.
The last step is to remove your ego. Another word many people love to use. I’ve seen and talked to so many potential great traders, with a too big ego. Let it go. Embrace the perfect imperfection.
Thank me later.
PS: should I sack the AI for its poor job on the cover?