Estimated reading time: 3 mins
Many people do not know the difference between preparation and confidence. They think if they are well prepared, it works as the confidence and they can have a good chance at making money. In the reality, these two concepts are very different and they have no relation to each other. This article will tell you how you can kill your profit if you are overconfident and how preparation can save your capital. Though they are very different in nature, they share a same bond in the fundamental concept. Both of them are necessary for growing your profit. Read this article and you will learn for yourself how you have been losing your money through overconfidence.
Be prepared to trade the market
Those who think trading is an easy job and they can easily make money with emotions are the ultimate losers of this industry. Just do the research and you will find more than 90% of the traders are losing money. They don’t have any proper education and they don’t know how to find good trades. The successful traders at Rakuten always suggest the novice trader start with the demo account since it will allow them the perfect platform to learn from their mistakes. Demo accounts are considered as blessings for the novice traders and if anyone uses it properly, they can easily make a huge profit from this market.
Trade with a confident broker
The role of the broker is enormous when it comes to Forex trading profession. The senior Aussie traders always prefer high-quality financial service provider like Rakuten broker. Ensuring live price feed and the fast-paced trading environment is a state of art. The average class broker will never help you to find the best trading environment. In fact, their slow trading platform will dramatically reduce your winning edge. For this very reason, the expert traders are willing to spend more money on the paid platform to ensure quality service. But you can easily cut down the extra cost by choosing a reputed broker like Rakuten.
Preparation increases the chance of profit
First, we want to talk about the preparation of trades. As traders prepare their trading strategy, they start trading with different plans in their demo accounts to get the expected results. It takes them many times before the result can be reached but they do not give up. Preparation take you through a trial and error process through which you can make your plans perfect and flawless. We should tell you that it will take time to master your strategy before you can trade in live markets. It increases your chances of making money and eliminates any risks with your plan. As you revise and repeat this process, your plan gets more precise every time you prepare yourself for currency trading.
Confidence comes from preparation but overconfidence is dangerous
Confidence does not grow naturally as it comes from practicing one plan over and over again. You may fail and you will lose capital but do not lose hope. As you keep on trying, you start to see light and slowly confidence grows in your career. There is one thing that is related to confidence and it is not good. It is the overconfidence that can push you to the edge of losing your investment. People gain confidence at first but slowly they become overconfident. They do not take any preparations and they start trading with their mind. They do not prepare and this is how they begin to lose their profit.
Prepare yourself and then be confident
If you want to achieve build confidence in your trading, you need to prepare yourself for the live trading. The trends are moving and there are volatilities in the market which can confuse you. Do not question your plan and stick to the strategy that you have prepared. This is where your confidence will work and you will find the trends are working in your favor.