{"id":10615,"date":"2011-03-30T10:28:39","date_gmt":"2011-03-30T14:28:39","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=10615"},"modified":"2021-05-06T15:28:18","modified_gmt":"2021-05-06T19:28:18","slug":"traders-ask-how-do-you-detect-overconfidence","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/traders-ask-how-do-you-detect-overconfidence","title":{"rendered":"Traders Ask: How Do You Detect Overconfidence?"},"content":{"rendered":"

Hi guys<\/p>\n

After a rotten 12 months I’ve had a cracker of a month not just with the recent bull run but with the preceding drop\u00a0also. This has occurred after stepping back, refining a trading entry methodology based around volume (exit and money management are already in place) and focusing on this play. Obviously I’m proud of myself, but pride comes before a fall as they say.<\/p>\n

Past success runs have often been burnt with a bad run straight after. Can you tell me what techniques you offer your traders to identify signs of overconfidence and over-trading and to keep it (especially overconfidence) in check?<\/p>\n

Bella<\/strong><\/p>\n

Great job asking the right questions. \u00a0Terrific work recognizing a pattern in your past that needs work.<\/p>\n

Volatile swings in your P&L can be a danger signal of trading overconfidence. \u00a0Going from down much more than normal to flat is a very dangerous signal. \u00a0A big rip is likely coming.<\/p>\n

Starting your pre-game preparation later than normal is something to watch. I am doing well I do not need to get in early<\/em>. \u00a0 There is a fine line between doing very well and underperforming. \u00a0A slight change in your start time can start a downtrend.<\/p>\n

What are some warning signs for you that indicate overconfidence?<\/p>\n

Mike Bellafiore<\/p>\n

Author, One Good Trade <\/a><\/p>\n

\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Hi guys After a rotten 12 months I’ve had a cracker of a month not just with the recent bull run but with the preceding drop\u00a0also. This has occurred after stepping back, refining a trading entry methodology based around volume (exit and money management are already in place) and focusing on this play. Obviously I’m proud of myself, but pride … Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,908],"tags":[971,1541,30,81,1193,653,1354,1349],"class_list":["post-10615","post","type-post","status-publish","format-standard","hentry","category-mike-bellafiore-bellas-blogs","category-traders-ask","tag-day-trading-firm","tag-overconfidence","tag-prop-trading","tag-smb-training","tag-trader-education","tag-trader-training","tag-trading-coach","tag-trading-mentor","no-post-thumbnail"],"yoast_head":"\nTraders Ask: How Do You Detect Overconfidence? | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/traders-ask-how-do-you-detect-overconfidence\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Traders Ask: How Do You Detect Overconfidence? | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Hi guys After a rotten 12 months I’ve had a cracker of a month not just with the recent bull run but with the preceding drop\u00a0also. 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