The confident trader is one that takes stock market education seriously and in all respects of the word, he or she will have a sizable amount of fear for the market.
Always, always and never fail to respect the market and tread carefully when you are trading.
Confidence is not like brashness.
You do not charge into battle wearing nothing more than a paper hat and a knife for peeling fruit do you? What you do is armour up and grab a weapon you know will have some bearing on your battle.
Confidence is also about being smart and knowing when to run away and avoid something that you know you cannot win.
The problem with most of the new traders out there is that the seem to see every movement in price as an opportunity for them to make money and they charge willingly into battle without doing any sort of research into the possibilities of the market and just what their actions are going to result in.
It is easy to think that you are going to make money, so do not confuse arrogance with confidence, in the market.
Being humble is perhaps one of the secret ingredients to a trader success in the market, and being able to identify when and where to trade and when to get out of a movement is the most valuable part of trading.
I think most people think that the good trader is the tenacious one that wades into battle and comes out winning.
No.
He is actually the one who waits in the bushes with a small knife ready to stab the market in the back.
Do not be too surprised.
The market is set up to take money from you, always remember that.
It is called the efficient market theory and I am sure any trader worth his 2 cents would have heard or read about that concept.
If the market was there to simply give away money, it would not be there at all.
It would be bled dry within the first few years and the rich would be rich and the poor would have nothing to do.
Also, I need you to kick away any semblance of emotional trading from your mind because it has no space in the concept of making money.
Gamblers make money based on emotions and they usually end up in either prison or the back of an alley bruised because they were thrown out of the casino.
So these are some aspects of the confident trader that you might want to know about.
If you do not fit the bill and your track record is far from impressive, then it is time you re consider your market attitude.
You can be someone else when not trading, but it is time to create an alter ego when you are trading.
Be cool, calculated and constantly on the look out for opportunity.
That is the mark of not only a confident trader, but a winning one.