Two traders explain how confidence comes from repeating the same setups in matching market conditions. One cites a 70/30 win rate: if you know your edge works seven times out of ten, losses stop feeling like failures and you can size bigger without emotion getting in the way.
Think about this, right? If you take a trade right now and you are not confident in the trade, your emotions are bound to step in. I'll give you an example. For me, I have certain setups that I'm really confident in market conditions. I'm really confident trading when those market conditions come to me and those setups come to me. I'm comfortable in executing. I'm comfortable in putting on size. I'm comfortable in even losing money those days because the edge is in my favor, the probability is in my favor.
Okay, well, I have, let's say a 70% chance of being right, 30% chance of being wrong.
I'm wrong. Cool. I'll take that. Why? Because over a course of 20, 30 trades, I understand if I'm wrong three, four, five times the other times I'm right, I will make far more money than the times I lost money. So that helps me control my level of emotions.
