Is over confidence in forex a killer

[Fxpipper]

Confidence - is it required to be a successful trader? Yes
But when you think that you are going to win against impossible odds, like trading against the market, every time - that's when the confidence changes into over confidence.
And more to the point, over confidence can result in DD's

 

[Emibluz]

I see the reasons with you clearly..it is over confidence is the killer not confidence per say. Once in awhile it worths it to take risks, especially when you are left with no option. For example, you trade in the US, Europe where you suffer taxes, FIFO rules, rigid customer services all to safeguard your investment; then upon all that your licensed broker triggers your SL, show you widened quotes, then bugs your platform. Then tell me why you shouldn't boldly try offshore where you can enjoy competitive tax free services where you are free to hedge and no FIFO.

 

[rrayne20009]

You need to keep you emotion in check.Dont trade if you are angry,nervous or excited coz it will affect you in your decision making.It is best to stop your trade for a moment and return when you have clear mindset.Over-confidence, I also think falls on emotion factor.

 

[Agnnis bingamin]

Yes ofcourse overconfidence is always harmful in forex as we can't predict exactly when market condition will change and what it will be? so though we are confident but we also ready to take 1% risk ( if market condition goes change).

 

[mumuy]

And that overconfidence can create inadvertence in your trading. Mistakes might occur in such situation.

 

[Akriti]

Confidence in trading.. Surely it's good.. in fact in any business when a person feels confidence... it's easier to go up. But let's not forget about contrast effects.. Confidence is not always good. Sometimes its level is much higher than it ought to.. and in this case there is more evidence that we will lose... no matter how confident we are... we should always know that we may lose... no matter how good you are in predctions.. etc... NO MATTER...

 

[signalsprovider1]

Self Confidence is good for everything, but more is not good.

 

[rrayne20009]

Confident is good but over confident is bad .Most traders fails because they are over confident.