Confidence is believing in yourself. Confidence is essential in any endeavor, because you need to believe you can succeed at the task. Confidence can be developed through introspection. Once we know who we are, we can proceed to unwaveringly carry out our goals because we believe we can succeed. Confidence is the belief you can succeed.

Confidence must not be confused with haughtiness. Haughtiness Is ignorance of oneself and false overconfidence-an improper introspection. Too much confidence or a haughty attitude can be a sure means to destruction. Realistic introspection is a way to guard against haughtiness.

Confidence helps you in many ways:

1. It strengthens your self-control because you now believe you possess the power to control yourself. This helps provide the power to act on your decision.

2. It helps you to accept responsibility and the results of your actions, and tolerate stress because you believe in what you are doing is correct.

3. It provides you with the ability to think independently of others and take a contrary view. Independent thought requires that you possess a strong belief in yourself. You need not be swayed by others because you believe in yourself.

4. It helps you to accept the insecurity that may arise in not understanding the market.

5. It provides the security of functioning in an insecure and changing unstructured environment.

6. It helps you to be emotionally detached and accept losses, because you realize short-term trading results are not a reflection of your ego.

7. It builds patience because you can wait for the proper time to act.

8. It reinforces commitment and enthusiasm, and helps you focus and work to improve yourself.