IT IS SEEN THAT TRADERS FOCUS ON RESULTS RATHER THAN PROCESS

KATHMANDU: Trade outcomes cannot be assured. The market might be predicted up to some level but its result is uncertain. You entered a market with full preparation to come out successful and it happened to be same as predicted but it can be the other way too; you entered a market with full study and analysis and relied on probabilities to come out successful but it had an unexpected outcome. The nature of trading is like that. Due to its nature and effect on the psyche of human being, it is essential to have a lot of self-confidence.

Self-confidence is an element which is required in every field to excel. Without this underlying competence, a person cannot grow and be ahead. It is rightly said that ‘Without confidence, we can do little in life. With it, we can change the world’. Confidence is a tool which when used in trading can have a positive impact and help to improve the performance thereon. Self-confidence in trading is the ability to focus on improvement and better performance thereby keeping self away from negative thought patterns like fear, greed, anxiety, et cetera.

Most confident traders look at the brighter side of the things rather than feeling bad and cursing themselves for a losing trade

Many traders have the misconception that winning trades develop confidence but the fact is just the opposite. More winning trades come from a dedicated focus on the process of trading where traders develop their skills and in doing so, develop their confidence. Focus on the process of trading is very important but very often, it is seen that traders focus on results rather than process. Soon if a trader sees a loss or two in a strategy they attempted, they will discard the strategy. This attitude leads only to frustration. So, in the phase of trading it is quite important to understand how we learn. Learning does not start at point A and steadily progress to point B; it is not a linear. Learning occurs in a series of ups and downs. We grow a little, fall back a bit, advance some more, take breaks and this is how it goes.

Other thing which leads to confidence development is positive thoughts. Most confident traders look at the brighter side of the things rather than feeling bad and cursing themselves for a losing trade. They don’t have a negative outlook. Rather they are quite optimistic and try to learn from their mistakes. It is said that positive outlook brings out positive result and the same applies to trading too. So instead of burdenning your mind with negative thoughts and wasting your time, be positive and think of how you can plan your trade better and follow it properly.

Develop self-confidence and you will see a better performance in your trade!

The author is associated with Mercantile Exchange Nepal Limited in the capacity of Deputy General Manager in the compliance Department. She can be contacted through compliance@mexnepal.com