COMMON TRAITS WHICH DEFINE THE PATH TO SUCCESS IN STOCK TRADING
Confidence versus Overconfidence is an age old battle. A confident person is knowledgeable, has a deep understanding, has sharpened his/her skill sets by repeated practise, and is constantly willing to learn. A confident person is also humble, can acknowledge his/her mistakes, and makes it a point to rectify their mistakes and faults. These qualities build trust and make him/her a success in life.
What happens when a stock trader is bestowed with confidence? This means that he/she will keep learning about the markets, take calculated risks, does not get overjoyed with profits, does not get bogged down by losses, use every opportunity to deeply understand the markets, and will make profits!
An overconfident person, on the other hand, is blind to his/her mistakes and faults. He/she cannot accept their shortcomings and assume that they know the best. Hence they stop learning and slowly but surely stop being successful in their chosen path. When a stock trader becomes overconfident, they start believing that they will always make profits, and that they know the best. They would stop listening and learning about the market and hence would eventually make a big loss. To top it, they may also go around saying that no one makes money in the market!
As ever, confidence always wins hands down when compared to overconfidence and this is true for stock trading as well!