21 20231216 022733 0004 How to get more confident in trading? (3 simple ways)

How to get more confident in trading? (3 simple ways)

How to get more confident in trading

How to get more confident in trading?

Confidence not only plays an important role in life, but it also plays the most crucial role in trading.

The lack of confidence and proper knowledge was the main reason for most of my losses.

Confidence aids in decision-making, patience, and resilience.

There are a few things you can do to gain more confidence in trading as well as in life.


Gaining knowledge is the initial step to build confidence.

Understanding which stocks to select, when to enter and exit, etc., will build confidence and benefit you in the long run.

Tracking up-to-date news is as important as any kind of knowledge.

Whether it’s basic theory or news, staying informed about events like earnings releases, dividend announcements, stock splits, etc., will help you make the right move at the right time.

Continuous learning is essential because we don’t want to miss out on new technologies or changes in the world of the stock market.

For example, learning about new technologies like algo trading, new strategies, and new segments such as options and commodities can not only expand your possibilities but also help you rethink your current strategy and create new plans.

This continuous learning process will contribute to gaining more confidence.

Learning the basics of both technical and fundamentals is also crucial, ensuring you’re confident in tackling problems whenever they arise.


Practical Experience and Simulation

Practical experience is crucial.

Observe the market for a few months before using real money to see if it suits you and if you can handle various situations.

Simply starting to trade without understanding more than the buy and sell concept can weaken your otherwise strong confidence.

After observation, learn, backtest, and paper trade your strategy for a few months—nothing builds confidence like practical experience.

Start Small, Scale Gradually

Despite learning and backtesting your strategy, nothing teaches lessons like a loss in your trading balance—losses are inevitable.

Start small, learn from your losses, analyze whether it’s due to your mistake or the reality of the stock market, and then gradually increase your position size as your confidence grows.

This approach will enhance your confidence in implementing the strategy.

Setting Realistic Goals

Set realistic goals and avoid aiming for the stars right away.

Watching YouTubers or social media influencers making millions can create a false sense of reality—consider their deployed capital.

Focus on average percentage returns in any strategy instead of specific numbers.

This approach fosters more confidence in your trading strategy.

Journaling and Performance Tracking

Maintain a trading journal to reflect on decisions and outcomes.

It helps identify where you went wrong and where you were right.

Track performance metrics for continuous improvement, including simple details like entry and exit prices and reasons.

Regularly reviewing these metrics will boost your confidence in trading.

Learning from Success and Failure

Learning from both wins and losses contributes to gaining confidence.

Regularly journaling your trades helps identify patterns in your mistakes and highlights what was right in your trades.

This self-awareness is valuable for continuous improvement in your trading approach.

Seeking Mentorship and Community

Connecting with experienced traders for guidance is valuable.

Learning from their experiences can save you from making unnecessary mistakes.

Be cautious in choosing a mentor, as there are fake ones.

Joining trading communities to share experiences and insights with fellow traders is also beneficial.

These interactions will provide valuable insights, contributing to the growth of your confidence in trading.


Here are some general psychology tips for developing confidence:

Incorporate visualization techniques for success and confidence.

Use positive affirmations to reinforce a confident mindset.

Embrace uncertainty and managing fear. Understand that uncertainty is inherent in trading. Create strategies for managing fear and maintaining confidence in turbulent times.

Boost your happiness hormones by celebrating even small milestones.

Do a self-awareness test. Know what you are good at. Know what you can control and what you cannot. Clarity will boost your confidence.

Review and step back from the trades. Process your emotions. Process your negative emotions and understand the root cause of your emotion. Note down where you went wrong.

Avoid overconfidence. This may stop you from looking at the reality of trading.

Implement exercises to strengthen mental resilience. Follow techniques for overcoming self-doubt and building confidence.

Encourage a proactive and positive mindset for sustained confidence.


In wrapping up our discussion on building confidence in trading, remember that confidence is not a one-size-fits-all concept. It’s about finding a balance that suits your personality and trading style.

Embrace the learning process, acknowledge setbacks as opportunities to grow, and stay disciplined in following your trading plan.

Building confidence takes time, so be patient with yourself.

As you implement these strategies and cultivate a positive mindset, you’ll likely find yourself navigating the markets with increased assurance and, ultimately, greater success. Happy trading!

About Post Author

Resources & Links

My Trading Youtube Channel

Investopedia – Reference

Tradingview – Charting Platform

Notion – Trading journal

Quizzes for Traders

Quick calculators for traders

Swing RRR calculator

Zerodha – Trading brokerage platform (India)

CoinDCX – Crypto Platform


Trading involves substantial risk, and past performance is not indicative of future results. Always conduct your own research and consider seeking professional advice before making any investment decisions. The information provided on this platform about digital entrepreneurship is based on the author’s experiences and industry knowledge. It should not be considered as financial, legal, or business advice. Please consult with experts in these fields before making business decisions. This blog may contain affiliate links, and we may earn a commission if you make a purchase through these links. Your support is appreciated.

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