Self-confidence.

Trading is a very lonely profession, at home alone. If I hadn’t joined a trading group then I’d end up talking to my charts all day. When I have one good day after another I like to share my excitement, and when I have a bad day, losses piling up, I get frustrated, but this is when you have to remember the keys for self-confidence. Having targets before even entering the trade, having stop loss placement at the same time I enter the trade, and most importantly, having rules that dictate why I’m looking for a trade and why I’m taking this trade.

"The key to regaining self-confidence in such a situation is to turn the focus from making (or losing) money to the actual process of trading."*

"You control how you trade; the market controls how and when you’ll get paid."*

Rules come first. They must be strong, logical and smart in accordance with successful trading practices. Only then can I focus on following those rules, and not on my daily/weekly P&L. Rules must make sense being there because only then will I be able to measure my success, and by following my rules I can tell I’m working on my success. My choice and action to follow those rules is the one thing that I can control every trade, every day. By controlling this and showing myself that I can always follow my rules, I have proof, evidence that I am a successful trader. This control of my success, this self-mastery, is what gives me more and more confidence as a trader, thus leading to more and more success.

Good Sound Rules Are Followed Every Trade = Confident Successful Trading Process = Eventual Profits

What helps me grow self-confidence is to work on my charts, notes and trades daily and weekly on a consistent basis. Repeating over and over the same plan and rules builds self-confidence. When I see that I have followed my rules every single day I want to continue the pattern the next day and next week because it makes me feel good about myself, like I’m a strong trader.

"Self-confidence is not expecting the best; it’s knowing, deep inside, that you can handle the worst."*

Trading without a stop is unthinkable. I need to know where my risk is. If a trade is not working, what will I take as my loss? I know I can manage only that loss. Many times we as traders tell each other "I've been there, done that," but thanks to this book I started to say to myself:

“I've been here; I can handle this.”*

"Confidence doesn't come from being right all the time; it comes from surviving the many occasions of being wrong."*

So why do I need a journal? To build my self-confidence I go and read my notes over and over again. Thanks to my notes and pics I can find what I did right and what I did wrong, so I can stop making mistakes and do great the next time. If I didn’t take pics or notes I would never remember what happened earlier in the day, let alone at the end of the week. What I was looking for or how I traded would be impossible to keep track of after a week. Knowing your own mistakes will stop them from happening again, and being aware of what I do well will allow me to make it happen over and over. I use my journal as an essential tool to keep focused on my rules and plan. All my positive notes help me stick to my path.

"Every trader needs a plan for losing. Your stop-loss is your plan for a losing trade."*

"Your losing trades and losing periods are your trials by fire that build resilience and confidence."*

*LESSON 9 The Daily Trading Coach 101 Lessons for Becoming Your Own Trading Psychologist by Steenbarger, Brett N.