Self-confidence is not expecting the best; it’s knowing, deep inside, that you can handle the worst. The self-confident trader can look a stop-loss level in the eye and know that he will be okay if it is triggered. The self-confident trader knows that loss is part of the game—and that some of our best market information comes from good trade ideas that don’t work out. Self-confidence is not cockiness, nor is it viewing the world through rose-colored glasses. It’s the quiet sense of, “I’ve been here; I can handle this.”
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