Beginner Trading Psychology

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Lesson 7 – Lack of Confidence / Self-Dou

Problem
You hesitate, second-guess yourself, and often miss opportunities. When you do enter, you exit too early, doubting your judgment.

Cause

  • Lack of backtesting → no hard data to trust.
  • Overexposure to conflicting ideas from others.

How the Brain Works

  • Cognitive dissonance arises when multiple conflicting signals confuse you.
  • Stress lowers trust in your own decisions, leading to hesitation.
  • Without proof (data), the brain defaults to fear.

Real-Life Example
Marius sees a clean setup but hesitates. Price moves without him. Frustrated, he enters late, chasing — only to lose. His lack of confidence cost him both the entry and the result.

Practical Solutions

  1. Backtest 100+ Trades – confidence comes from numbers, not feelings.
  2. One Strategy Rule – stick to one edge, silence outside noise.
  3. Trading Plan on One Page – clarity reduces doubt.
  4. Start Small – trade micro-lots to build confidence without fear.

Key Takeaway: Confidence doesn’t come from hype 🚀 — it comes from data and consistency 📊.

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