Over confidence might affect you trade

[VivaMan]

This na the reasons why many traders they dey depressed because of over confidence, normally if you dey trade, confidence dey very important, but at a point when e don dey too much, e dey lead to losses and lack of trust in one self.
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‎ Ways  in which Overconfidence Can Affect Your Trading:
1. ‎ Keeping deaf ear to risk Management:  if you dey always ignore everything, believing that trading never fails, then it can cause a big loss for you unexpectly.
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‎2.Overtrading:  most traders after getting massive wins they believe say losses no dey again, say they know the right strategies to scale through and start doing unnecessary trades, when losses start coming it will affect you.
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3. ‎ Revenge Trading: This one is something that almost all traders do,  that kills their mental health,  chasing losses with over confidence thinking you can recover everything instantly.
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‎  4.    Refusing to accept losses: You no want even believe say u go lose due to over confidence because you believe say  the market go favor you everyday.
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 How to Control Overconfidence
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‎Have a good trading strategy and stick to it , even after massive consecutive wins.
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‎Don't risk all your capital while trading.
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‎Accept the fact that loses are involved in trading.
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‎Don't fill that you can't fail because of constantly winning.
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‎Prioritize decisions over capital.
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‎Have an alternative B.
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‎Summary
‎Always apply discipline while trading, this will enables you protect your money. Confidence is good but too much of it causes losses, as professional you don't need to predict every market moves , you just need discipline, consistency and risk management.
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[Joy_learns_crypto]

All this no be over confidence dey cause am all the time.  The points you made that could affect people's trade aren't peculiar to being over confidence. There are people who aren't confidence in themselves, some are not even up to two months into trading but will be making poor judgement and decisions like ignoring risk management, over trading and even all the points you mentioned.

There are also traders who are believe in themselves too much and have the emotional control and judgement not to fall into the category of points your mention.

Being a bad trader, lacking emotional control is not equal to being over confident.

[Dr.Bitcoin_Strange]

‎  4.    Refusing to accept losses:

All your points are valid, however refusing to accept loss is usually in two phases, first one is when the trader lose a trade and assume that they were never supposed to lose, so they decide to enter another trade just immediately after losing the first trade. The second phase is caused by hope, I don't really think it's due to overconfident but hope will make some traders to hold a losing trader for a longer time instead of closing the trade when they are still experiencing small lose. They will then hold unto the trade hoping that miracle will happen to make the trade still turn in their favor but in most cases, it doesn't and the person will end up with much bigger loss than the supposed small loss if they had closed the trade earlier.

It has happened to me several times, I enter a trade and the market start going against me putting me in a small floating loss and I thought that it was just a pull back, hoping that the market will still continue in my direction after that pull back but I was wrong, before I finally decide to close that trade, the lose was bigger than what it was initially.

Making money from trading is not easy, so, one has to approach it with calmness not by urgency, because if you say you want to quickly become make money through trading, you might just be donating to the market until you get tired. Good trades doesn't show up every day, you must be patient to wait until you see a good set up with high probability of being successful.

[Hyphen(-)]

‎Summary
‎Always apply discipline while trading, this will enables you protect your money. Confidence is good but too much of it causes losses, as professional you don't need to predict every market moves , you just need discipline, consistency and risk management.
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Not applying discipline in your trading is one of the reason why many traders lose money in their trades. Greed is usually what pushes so many of our traders lose money in trading, they will always want to maximize their profit, they will not apply risk management that can help them minimize their loss, and some of the traders are so confidence on what they feel is right, they will use a very high leverage so that they can easily make their profit, they don’t usually consider the other side of the trading which can easily affect their capital with high leverage.

Therefore, OP needs to add the use of high leverage as the list of what overconfidence traders use, which mostly don’t end well for their trades.

[Ummeettaa]

1. ‎ Keeping deaf ear to risk Management:  if you dey always ignore everything, believing that trading never fails, then it can cause a big loss for you unexpectly.

If anyone that is into trading always keeps deaf ear to risk management even as little, that person clearly showed that he/she never learnt or follow one of the most important key factors of trading, and is likely to loose a Fortune afterwards even if it's not immediately.

Risk management should always be taken into consideration when trading, and if being ignored by a trader, such person is likely to always loose funds frequently because he/she will always make reckless decision while trading.


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‎2.Overtrading:  most traders after getting massive wins they believe say losses no dey again, say they know the right strategies to scale through and start doing unnecessary trades, when losses start coming it will affect you.

Additionally, some traders if starting to profits frequently in trading will starts thinking of trading all the time to make fast money, not knowing how risky it's always is when trading always.

[Donk1]

​Well being confident as a trader isn't bad and perhaps being overconfident is neither good nor bad ,best to say it depends on whether you are a beginner or an experienced trader. Still if the risk you are taking isn't a calculated one, then you would probably end up in a loss. What most traders don't understand is that the market continues to adapt, and as it does, you too have to change your strategy. No matter how strong your psychology is it would be useless if you keep making losses constantly, though I still believe it's easier said than done when it comes to trading because most times we can't really point out where we often make mistakes in the market.​That said all what you mentioned mostly happens to beginners in trading, not folks who have better understanding of the market. The secret of trading is that the way you approach it isn't always what will determine the outcome of that trade, still you can't stick to one strategy for long or perhaps you have to make adjustments to it ..that's all.......

[Frankolala]

‎2.Overtrading:  most traders after getting massive wins they believe say losses no dey again, say they know the right strategies to scale through and start doing unnecessary trades, when losses start coming it will affect you.

This one na e I dey call greed. When u to greedy, even when you dey on profit, you go continue to trade to make more profit because of the too much confidence wey you get. You go forget say the market dey volatile and e fit go against you at any time. Even if na $10 you make, accept am with happiness and no trade again because that $10 wey you make some traders don already lose $100. Too much confidence no dey carry anybody go any where instead, na problem e dey finally land them and for trading na losses e go land you put. No open any position when you no understand the market.