Why do some people succeed spectacularly in the market while others fail?
The market is the same for one person as it is the next.
So why the dramatic difference in performance?
Could it be that self-doubt and a lack of confidence are holding you back?
As many know all too well, there's an emotional component to trading and investing.
In fact, for some, their emotions are the biggest obstacle to trading success.
Missed Opportunities
How many times have you found a stock you like, did your research on
it, and were ready to pull the trigger, only to talk yourself out of it
at the last minute? And then days or weeks later, you come to find that
stock has shot up, and you're now kicking yourself for not being in it.
Having that happen to you one too many times, you vow to not let
that happen again on your next stock. You still have the same unease as
before, but you decide to get in anyway. Only this time, the stock
immediately starts going down, and you instantly regret your decision.
Of course, with that recent loss fresh in your mind, you decide to
be more diligent. But you wind up talking yourself out of your next
trade, only to find that stock has gone up just as you had expected, and
you're once again not in it.
This cycle can repeat itself far too often, creating scores of missed opportunities, making people hate the market.
So where does that come from?
That self-doubt stems from a lack of confidence in your strategy.
Trading With Confidence
Success in trading comes down to two things:
1) Knowing what works, and
2) Doing what works
If your stock picking strategy has proven to pick winners -- in good
markets, bad markets, and everything in between, then you know your
strategy works. And you'd have number 1 covered.
Then, when it comes time to placing your trade, you won't struggle
with the decision of 'should I or shouldn't I', because you know your
strategy has put the odds of success in your favor.
It's the 'knowing' that creates the confidence in 'doing'.
If you know your strategy works, you would not hesitate to place
your trade. The unease would disappear. The self-doubt would be replaced
with excitement. And your confidence would soar.
You'd now have number 2 covered.
As the saying goes, "a good strategy works best when you use it".
And the more you use it, the more confident you'll become, making you
that much more likely to keep using it. And that is the recipe for
success.