"Vices That Are Hindering Your Success As A Trader"

      OVERCONFIDENCE.

Continuing our talk regarding other vices, see that these small characters in your nature act as a barrier in your path of success.

Many a times trader feel a lack of confidence in them, but very often confidence drives them into trading. Overconfidence results from incapability to appreciate complexities of markets and underestimation of challenges of trading successfully. Such traders have lost all respect for the markets and their deeds represent the same. That is the reason why markets do not respect them and even with the slightest turmoil these traders loose big.

Overconfident traders think that reading about a few setups or buying the newest software will qualify them as good traders. They do not believe in gradual growth of an account instead they pile up trades even before a setup is formed. This impulsiveness restricts them to follow a definite process of time frame alignment. In all this it's the broker who gets the benefit. If you have this attitude towards market, you gotta change before you get whipsawed in the process.

Hallmark of overconfidence trades is that they feel they will make something happen in the market; Instead of waiting for markets to perform. Targeting everyday or every week profits is a symptom of overconfidence. Such trades generally tend to buck the trend and thrive to catch tops during a bull market and bottoms when bearishness strikes. Without fear, they over trade to such extent, that their trading capital is choked.

TIP:- Follow trading based on rules and rehearse the rules intensively but in virtual and real time trading. Always read markets, do not try to order it.

PRACTICE "NO BOASTING, JUST POSTING".

STAY TUNED FOR MORE ARTICLES ON "THE THREE MARKET IDIOTS".