In trading, confidence is power — but overconfidence is danger.
When you think you're unbeatable, the market will humble you fast.
Example: After 4 winning FT trades, a trader jumps from risking 2% to 10%. The market turns — and wipes out the gains.
Overconfidence sounds like:
💭 “I’m on a hot streak — today’s my lucky day!”
💭 “I know exactly where the market’s going.”
💭 “I deserve a win — the market owes me.”
💭 “These wins mean a big one is coming!”
Warning signs of overconfidence:
🚨 You risk more than usual because “you can’t lose”
🚨 You skip setting a Stop Loss
🚨 You ignore your trading plan
How to stay sharp:
1️⃣ Accept that any trade can go wrong
2️⃣ Stick to your risk limits, no matter what
3️⃣ After wins, take a step back before your emotions take over
Ever let confidence turn into overconfidence? Drop your story in the comments!