Being Overconfident Kills........

You know how it is: You've just started trading. As a matter of fact you're starting to get the hang of it. Pretty soon, you have a string of succesful trades and an inflated ego the size of Mt. Everest. Too much of a good thing must be true. Not quite, especially when it comes to overconfidence in the securities trading markets. Being very confident at a job interview may help you land the job, but when it comes to trading stocks (even options, etc), it will help you land a huge loss. You see, a little anxiety never hurt anybody. Being overconfident or in a manic state will often lead you to play grandiose and over the top risky plays and ideas. It can also draw down your anxiety level, thus leading you to miss important selling cues. Overconfidence can also lead you to slack off and not put too much effort or time into studying your current or future picks. The "hey I got this, no need to worry" attitude that comes with overconfidence can surely destroy anyones once blossoming portfolio.

So the moral of the story is....get real, get over yourself and stop the bragging. Keep your confidence in check and your wits about you because the market is a game that can quickly turn the player, into the played.

-Nick M. H