You need to have pretty strong self-esteem and confidence level because if you don’t have that, you would not have the faith or the confidence to apply any strategy, to follow any workflow or to even take risks.

The thing is for people who do not have strong self-esteem or confidence, you will not dare to take risk and in trading the markets, if you do not dare to take risk you cannot think about any rewards because the reality is you need to take risk in the financial market before you can reap any rewards.

So if you have low esteem and self discipline but at the same time some traders are overly confident, overly high self-esteem that they become arrogant. So that is the other end of the other picture which I wouldn’t suggest you to go anywhere near there.

This is important, I will always remember this. A trader needs to be humble. What does it mean to be a humble trader?

A humble trader is a trader who has self confidence but he’s not arrogant, basically that’s humble. So if you have psychological issue of lifting up your self-confidence and self-esteem, what I will really suggest is that don’t focus on the outcome first. Don’t focus on the outcome of whether you are making money or not.

What I will suggest for you is to get into the workflow. Focus on the process, don’t worry about your trading and firstly don’t trade money first.

Just do paper trading for example. Get into the workflow, learn how to do the analysis, learn how to do the execution, learn how to do the tracking journaling and review part.

Paper trade for 30 trades, 50 trades even if you are losing money on the paper trade. Go through this process, learn what you are failing from process and that is the best way to build up your confidence because if you do paper trading, you will start to refine things and if you learn from the right people, if you keep applying the best practices, you will start to see your paper account from negative or maybe from zero become negative for a while and become positive become negative.

Once you start to see some consistency where you becomes positive for most months or maybe on a yearly basis, that’s when naturally your self-esteem and your confidence will improve from there.

So you try to improve your self-esteem and confidence by getting into the process.

Interested to receive mentorship opportunities like this with Philip?

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Philip Teo

Founder & CEO at Traderwave Pte Ltd
Philip Teo is an entrepreneur, speaker and trading coach who specialises in the field of Technical Analysis of the financial markets. He is currently the Founder and CEO of Traderwave Pte Ltd, a financial technology company that offers a web charting application to global traders. He has conducted many trading seminars and appeared on national television before. He is also currently an official speaker and trainer with SGX Academy. Learn more about him at his Google+ Profile, LinkedIn Profile and Facebook Profile

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