This concept may seem to some like an obvious idea and to others a sure-fire way to blow up your account. Confidence is the culmination of stress. In every growth aspect of our lives, we must stress ourselves to achieve what we are after. If you want to drive a formula one car, you must first drive go-karts. When the two skills are compared side by side, driving a kart seems ridiculously easy, but achieving enough skill to win a top kart race is extremely stressful.
This stress, at every stage, brings with it growth that produces the skill we need to be confident. What we all need to be truthful about is have we grown or advanced into the next rung of performance. When doing this self-analysis, always consider the stress you have endured to reach this next stage. If you cannot think back and remember that pain, then you are probably lying to yourself. Never trade past your level…your skill. All skills and growth come from the stress you make yourself endure.
Whether driving a race car or trading to make a living, these are both performance activities and you are up against the best in the world. There is no winning scenario where you go in without confidence in your skill level. You must know beyond a shadow of a doubt that you can trade at the level you are attempting. Tell yourself every morning, talk to yourself during the trading session, believe in the skill you have earned. This concept has been a game-changer for us and is a key part of our Trading Escapes Method, “Stress=Skill=Confidence”. Always earn your skill and trade with confidence.