I Won 37 Trades in A Row Then this Bad Thing Happened.

Overconfidence

“Overconfidence precedes carelessness.” ― Toba Beta

Overconfidence can be devastating to traders. That’s why you see a lot of new traders when they first start out going great win streak and then they get overconfident and they lose it all.

And yet even though overconfidence can be dangerous if you don’t have confidence that is equally as dangerous. So the bottom line is you have to maintain a firm confidence in yourself, your trading abilities, and your strategy. Yet still maintain respect for the markets and understand that as soon as you start believing you’re the greatest trader that ever lived the market will quickly teach you a lesson.

So on today’s video I talk about:

  • Eurodollar analysis and possible trade setup.
  • My terrible trading day yesterday.
  • How I plan to respond to yesterday’s trading.

Followup:

So after watching the video please leave a comment and share number one how do you deal with overconfidence and number two how do you bounce back from a bad day?

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Casey Stubbs is the founder of Winners Edge Trading, which is one of the most widely read forex sites on the web. Winners Edge Trading has trained thousands of people to trade the Forex markets.

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  • Chris

    Casey, I have been following your account with myfxbook and you have great results. Is this the class you are talking about that will start Jan.4? With explosive account growth? If so how much is the class? Thank you..Chris

  • Chris, This is my first class and it starts January 4th and I want to see how well my students do before deciding if I am going to have another one. If they like it and they do well I will have another class.

  • Chris

    Casey will you be offering this class again in the new year?

  • I have also experienced a similar situation when I made a huge trade and lost it due to my overconfidence. I would just like to add that overconfidence can be managed with the help of careful analysis and keeping track of your stocks regularly. One can also try out long term investments to minimize losses.

  • If you get the direction right I would take profit quickly. Heres why….. if the trade moves back to your entry you can always get back in.

  • bbmilo

    Casey,

    I find myself not getting enough pips to complete take profit and balance r/r before it reverses .However my entries tend to be accurate in the direction initially . Should i trade on a higher time frame? Which do you suggest? Should i have a shorter take profit and longer stop loss?

  • RICHARD WILLIAMS

    Merry Chistmas Casey

  • RICHARD WILLIAMS

    Thanks for sharing so much with us, both the good and the bad, not too many mentors are this transparent and it is very refreshing, as there are so many so called gurus out there that are nothing more than marketing scammers and not actual successful traders or in some cases not even traders at all.

  • Thanks Tim!!!! Love you man and have a great Christmas 🙂

  • Scott Lauckner

    Right, that’s how I feel. If a person does things correctly, the profits will come. I love your mentorship and the way you put yourself “out there”. Keep up the great work!

  • Thanks Richard,

    Trading is really tough to get the hang of the concepts are easy but the application is difficult. I did not use the profit zones tool in the trading competition because it was more aggressive than normal. However, I do want to share everything I am not keeping any secrets I really want to help as many people as possible.

  • Great video Casey. A lot of professional traders and trainers don’t like to admit when they take losses, but it’s very encouraging to new traders to see that even those who’ve been to a few rodeos still take their lumps. It’s part of the job. The professional thing is to keep the lumps small. 🙂 Great job man. And have a fabulous Christmas with your lovely bride and all those young ‘uns.

    Tim

  • I like that idea of holding off just a bit before increasing size. That is a good idea whats the big hurry anyways.

    Thanks for sharing.

  • Scott Lauckner

    Great video Casey! Yes, you took a hit. The great thing you did was got right back at it and like you said made half if not more back. Personally I have found that if I get to a point of winning alot of trades, I REALLY concentrate on keeping my strategy intact. If I feel I have hit a profit target that I can increase my size, I do a few more trades at the same trade size just so I can show myself I still have all my wits about me that increasing my size and can continue on. You are no different than the rest of us, we are human and we do things like this at times. Stay on the horse and you will blow away your profit targets. Great video!!! Have a Merry Christmas!