30/03/2024
Let's talk about trading confidence.
All of the answers I received was right. Backtest, front test, journal and personal data analysis. You really need to be competent before you become confident.
But then again ilang months o years ka nang nag ba-backtest, front test, journal at alam mo na nga kung ilang yung average winrate, average risk-to-reward ratio and average holding hrs mo, alam mo na din what is the best time to trade for your T.A to work, pero bakit hindi ka pa din confident?
Do you wanna know why? Maybe, because you are not really building confidence but arrogance.
There is a fine line between confidence and arrogance.
Arrogant traders put their trust in the system ALONE,
"eto yung sabi sa sistema ko, eto lang yung mangyayari sa market, pag mali yung nangyari, mali yung market"
They love proving other traders wrong
"tuloy pa ba yang analysis mo? ako kasi tama, ikaw mali"
Arrogant traders are so great technically and because of that, they are prone on being too sure with theirselves, and because of that making them risk more than what they can afford to lose.
Confident traders on the other hand, put their trust on the system at syempre, sa sarili nila.
"Eto yung sinabi sa sistema ko, kung eto ung gusto ng market, within this timeline eto na ung mga potential result nya, I will accept na I am wrong when this happen"
Confident traders also focus on how they can improve even more
"This was what happened to me this week, I was trying to keep on longing the declining market, hindsight na ngayon pero aminado ako na mali ako dito sa side na to, maybe I should look at the bigger picture and what could potentially happen next week"
The basic fine line between the 2 is; arrogant traders are addicted to being right, whereas confident traders can tank their errors and still make rational trading decision.
Regardless of strategies, there are only 2 players in the market.
1. Those who are humble
2. Those who are going to be humbled.