Learning Confidence

From my personal experience, I have had 2 stages of condifence. Confidence that lasted for several months, until my disciple got the best of me, and the confidence that I have now. The first stage of confidence was based on soley trendline breaks and watching price action on FXCM Trading Station Tick Charts. With this combination I made a ridicoulous amount of profits last summer. But, I was still missing something. The strategy worked well, however, I did not have the discipline to follow through with all the signals. I also had a few trendline break out fake outs that did not have a solid exit strategy in place. The reason why I lacked the discipline is from a few misguided trades that consequently lowered my confidence. And, once our confidence is down, there is no point to trade anymore, as emotions will always get the best of you.

The only way to build a trader’s confidence, is finding a strategy that you are overwhelming confident in. The strategy, can be represented as our Heart. If our heart is strong, we can achieve great obstacles. On the contrary, if our heart is weak, we are very limited to what we can achieve. I have spent day one (2006) to now, researching, back testing, forward testing and doing everything that I believed would improve my analytical ability. I never engaged in trading discussions as I knew my success would come from within and not from someone else. Well, this is true to a certain point.

Everything that I do now is obviously based off of someones research and experiments. However, there is no free lunch. The clues were always in front of us, but we are the ones that had to put the pieces together. I was never taught how to fish, but I did see a guy fishing, and that was enough for me. This does not mean, you can not surpass that other fisherman. If your hungrier than the other fisherman, you will obviously get more practice in. Moreover, becoming a better fisherman. You can say this was my ambition.

I’ve never given up, no matter how bad the consequences were. I’ve had to experiment with every thing possible, until I was able to find a strategy that gave me the confidence to never doubt myself again. This Pure Price Action Strategy will build your confidence each day you study the market. When your confidence increases, you will become unstoppable.

Never second guessing your decisions, never doubting your strategy, and never losing again. I got you with that last one. We still have to take a loss from time to time. It’s not possible to have a 100% win ratio and if you are looking for such a strategy, you will surely pass up some great strategies along the way. I’ve seen this many times in the Forex Forums, where people move on quickly as soon as a few losses occur.

As a professional trader, a loss is perfectly acceptable. Knowing when you are right and when you are wrong is key to success and is vital for long term growth.

Since we are using price action in its most refined detail, knowing when our analysis is wrong is quite simple. As many strategies are purely focused around when to enter their trades, they often rely on a fixed stoploss, trailing stoploss, No stoploss or from some indicator to tell them that it is time to exit their position. This is not how you should trade.

Every trade will have a different goal and level of risk. We will adjust our positions accordingly to our risk level, goal in mind, and most importantly based on support and resistance. Now, before you say, “Oh, a typical Stoploss on the Last swing hi/lo!” No, this is not true at all. The high and lows are not the most precise or most Current Support and resistance level.

The purpose of sharing, my knowledge, is to build your confidence level up. Words of wisdom can only increase your understanding of how important confidence really is, but in order to surpass that boundary and move on to the next level, a proven strategy must be implemented.

I am only offering the Tools. There are some aspects of trading that I can help you with and there other aspects that you will have to master on your own. For example, I can give you tactics to improve your discipline, but discipline is something that you will have to work on. I can give you a large list of what do you before you start trading, but it is up to you to follow these rules. I can give you the best trade calls, but it is up to you to pull that trigger. I can tell you how I trade, but it is up to you to find the confidence in yourself to use my strategy as I would use it. I am here to guide you and show you how I trade, how I make pips, and how I control risk. It is up to you, to implement my method and try it our on your own. This is the only way, you will build up confidence in yourself and in my strategy. Watching me take my trades, will not build up your own confidence. Your confidence relies on your efforts. The more effort you put forward, the more confidence you will gain… Once, you have the confidence to pull the trigger without second guessing yourself or the strategy, is when you will be able to become consistent.

A full time trader, does not mean that you have to trade 8 hours a day 40 hours a week. A full time Trader, is a trader who makes enough money from trading alone to support himself/herself and his/her family. I didn’t become a trader to sit in front of the computer all day. Unfortunately, it has taken 4 years of doing this to get where I am now, but I became a trader, to give myself the flexibility to raise a family, to have freedom, to never rely on the economy or an employer to support my expenses and most importantly to protect my future from uncertainty. These are the ambitions that kept me pursuing my dreams of becoming a full time trader.

What are your ambitions towards becoming a fulltime trader?