Dont be overconfident in Forex.

[sindarin]

You only see the professional while ignore the newbies and also other traders that still progressing to be a better traders, if you ever trade before once in your life in real account then you will fee something like this, unless you never trade even once. For expert or professional(even still has chance to loss their money) i am sure most of them confident in mostly or even all of their trading but there are many factors that affect market aside from our pyschological side alone.

 

[glucoseguy]

You only see the professional while ignore the newbies and also other traders that still progressing to be a better traders, if you ever trade before once in your life in real account then you will fee something like this, unless you never trade even once. For expert or professional(even still has chance to loss their money) i am sure most of them confident in mostly or even all of their trading but there are many factors that affect market aside from our pyschological side alone.

Factors like what, if i may ask?

Well, you guys wrote the same thing because from my understanding of what you wrote, over-confidence isn't ideal for both Forex professionals and Forex newbies. He didn't specify newbies because its rare for newbies to be over-confident due to the fact that they have little or no forex trading experience.

 

[riddick09]

That's a general thinking that the novice traders will not going to be overconfident until, they have made successive profits or similar situations that makes them think that they are good enough in this business. So, there is a specific instance how they will become overconfident or chance to have.

 

[jackcm]

That's a general thinking that the novice traders will not going to be overconfident until, they have made successive profits or similar situations that makes them think that they are good enough in this business. So, there is a specific instance how they will become overconfident or chance to have.

That's right. Many traders, after profiting some money in demo account, immediately start trading for real because they they they're good enough to beat market. Well the result is that some of them even lose all the money but they can't still understand why.

 

[sindarin]

Factors like what, if i may ask?

Well, you guys wrote the same thing because from my understanding of what you wrote, over-confidence isn't ideal for both Forex professionals and Forex newbies. He didn't specify newbies because its rare for newbies to be over-confident due to the fact that they have little or no forex trading experience.

like currency intervention, broker's quality(the registered one or not), or some crucial financial news. For me overconfident is exist, no matter what kind of grade they are, but mostly newbies are the one who usually become overconfident with their skills in forex, and sometimes digging their own hole, and overconfident is not a good idea to do.

 

[Decub]

For the fact that some traders has been trading for over one year means that they should be confident in forex trading,why do you think the so called forex professionals make use of the demo account,if they are sure of what they are doing or confident,they should disregard the demo account and see what would happen to them when trading. The truth is,I might not be able to convince,but the way I sees it,there is is nothing like over confidence in forex.

Actually over confidence does exist in Forex but there are time when the uncertainties become so high that even the overly skilled becomes unsure of himself. Logically an experienced trader who have been experiencing successive wins or gains in series is like to be overly confident in the preceeding ones.

 

[hadg33]

Well,we all are still in one circle,look at sindarin's posts,he said the newbies tends to be over-confident not knowing that they are digging there own holes. If they can be digging there own holes,do you think there would more chance for over-confidence,this is the more reason I am not going to use a forex beginner as an example.

 

[naninov]

i think caused of lost not because of over confident, overconfident means that trader already make some good analysis and do trade based on his analysis and convince it will make profit... overconfident is not the caused of loss, the main cause is gambling the market without proper money management and analysis

 

[hadg33]

Yes,I think you made a point there,it is not that people are not confident to trade forex because of the loss involved but the the gambling is what would make a trader not to be over-confident,you know what gambling is,it is still all about luck.

 

[Decub]

Someone being over confident means he is tying to involve Ego in a business he can hardly predict the out come. Forex is a game of probabilities and know to be full of uncertainties, it is that filled with speculations and only the market determines the out come so for me, being over confident is just a mirage, though it is not wrong for some one to have confidence in his trade.

 

[glucoseguy]

That's correct being over confidence will only make the forex trader feel that he's making the right choice perhaps because that method has been working for him without having to properly analyze the market and apply the right timing. That could make him invest large amounts which he can't afford to loose and he will end up loosing them.

 

[Decub]

That's correct being over confidence will only make the forex trader feel that he's making the right choice perhaps because that method has been working for him without having to properly analyze the market and apply the right timing. That could make him invest large amounts which he can't afford to loose and he will end up loosing them.

And there's a way over confidence works in someone's life. It blindfolds you not to understand that you are getting it wrong, it brings out the proud human in you so that you don't seem to take correction from others which will only dawn on you when you must have failed.

 

[barood4money]

It is true that over confidence can give you only failure. And it is also true that greediness can give you loss instead of profit. Before trading you should always analyse the market. It will keep you risk free at most of the time.

 

[Cutiekc]

And there's a way over confidence works in someone's life. It blindfolds you not to understand that you are getting it wrong, it brings out the proud human in you so that you don't seem to take correction from others which will only dawn on you when you must have failed.

Such over confident often comes when we must have made perhaps three profits on a row so people who does that tends to be so confident that they have now, a very good and trusted trading system so therefore they are no more to bother in making adjustments or making much market reviews because they are now at the top of their game.

 

[barood4money]

I think over confidence comes from greediness. Greediness to earn more profit from the trading. And sometimes that results loss rather than profit. At the time of trading you must have sense of planning your profit and loss.

 

[anosocialnet]

overconfident is one of the reasons why most fail in forex trading, because thinking one is a most profitable trader and that makes him not to be consistence in learning new skill, and getting updated about the changes in the market

 

[barood4money]

Yes, that is also a point [MENTION=53291]anosocialnet[/MENTION]. Many traders thinks that There is no necessary to learn more, they have learned enough. And thats becomes the reason of facing loss.

 

[budado]

Sometimes when we are making money its really not hard to help ourselves to be over confident. I also become over confident when I make profit for ten months straight. But on the 11th month I increase my lots size and worse come and I got multiple MC. A clear lesson in my part to stop trading aggressively if we make profit.

 

[barood4money]

Sometimes when we are making money its really not hard to help ourselves to be over confident. I also become over confident when I make profit for ten months straight. But on the 11th month I increase my lots size and worse come and I got multiple MC. A clear lesson in my part to stop trading aggressively if we make profit.

This lesson is not only for you. It is for everyone, even me. It is usual to be careless after making profits for long time. And this careless can result a big suffer. Sometime this happens to me also.

 

[Decub]

Such over confident often comes when we must have made perhaps three profits on a row so people who does that tends to be so confident that they have now, a very good and trusted trading system so therefore they are no more to bother in making adjustments or making much market reviews because they are now at the top of their game.

Yes, and some even allow it overrule their actions. Confidence is a good thing in all aspects of life but when it becomes bad is when the person allows it to gradually turn to Ego. Gaining profits in series is a good way to get motivated but we should always understand that even when it comes that way, it can as well, go that way.