Confidence vs. Conceit
Do you consider yourself a confident person? Confidence is a very helpful quality to cultivate when you are striving toward success in any area of life, be it professional or personal. It is a particularly valuable asset in business, and in binary options trading, it can help you to win and win often. What about conceit, though? When does confidence turn into overconfidence? How do you walk the fine line of confidence without falling into the trap of conceit? Overconfidence kills trading accounts. Confidence builds them.
What is Confidence?
Confidence has variable definitions. Let’s look at several different ones:
- “The state of feeling certain about the truth of something.”
- “The belief that one can put one’s trust in something.”
- “A feeling of self-assurance arising from an appreciation of one’s qualities.”
These definitions are actually quite different from one another, though they do share aspects in common, and they are all interrelated. How does each one apply to binary options trading?
The word “certain” in the first definition is a dubious one, especially with regards to trading. By definition, trading is a business of uncertainty, and a good trader will always recognize that essential uncertainty at all times. The moment you are too certain of anything, you are already wandering into the realms of conceit as a trader. As long as you are not losing awareness of uncertainty, however, it is reasonable to have some certainty that something will succeed, and this brings us to the second definition of confidence—the ability to trust in something.
As a trader, you use a system or method to plan your trades. That system or method should be grounded in testing and experience. If your method tests well, you have every reason to trust it. Your certainty in it is based firmly in fact. Changes in market conditions can still cause it to fail, but you have a basis for trust. Trusting your system and your experience is a good kind of confidence. Believing your system is infallible is conceit.
The third type of confidence is equally valuable in binary options trading. You should never develop an appreciation for nonexistent qualities or traits, but as long as you actually have positive traits on your side, you should appreciate those abilities and what they can potentially grant you. They all tip the balance in your favor, and they can all help you to succeed. The discipline, honesty, and focus which go with trading help you to make smart choices and stand by your system and your trust. Having confidence in those abilities can boost your chances of success by reminding you to make the right decisions.
Learn how types of intelligence will help as well.
What is Conceit?
Conceit is defined as follows:
- “Excessive belief in one’s own abilities or accomplishments without regard for failure.”
There are two elements to this definition. The first is excess. In other words, conceit has no basis. It is a belief with no foundational data. You would be conceited if, for example, you believed you were an amazing binary options trader because you are you — even if you had never conducted a single test in your life. You would not be excessive on the other hand if you believed you were an amazing trader because you had done extensive testing and the data proved you knew what you were doing.
The second element to the definition is “without regard for failure.” If you are conceited, you are certain. When you are utterly certain of something, you are shutting out the possibility that you may fail or that events may not go as planned. We have all heard the old axiom “Pride cometh before the fall.” This is what that saying is talking about. Why? Because when you disregard the possibility of failure, you are inviting it through your hubris. You stop paying attention to warning signs and you begin to believe you are invulnerable. This makes you sloppy. You make bad decisions and you pay the consequences.
How Do You Become Confident Without Becoming Conceited?
A lot of people struggle with the idea of becoming confident without becoming conceited. This is perhaps in part due to the nebulous definitions given to both concepts. Confidence is regularly defined as “feeling certain.” Since the word “certain” is an antonym for “uncertain,” this does not necessarily seem appropriate in a world of uncertainty and chaos. The market in particular is a chaotic environment where certainty often equates automatically to hubris.
I would like to propose a new definition and distinction for the idea of “confidence” as opposed to conceit.
Conceit is an exaggerated evaluation of what you believe that you have or will have.
Confidence is a projection of what you want.
When you are conceited, you are making a false assessment of your present circumstances as well as your future. You are making assumptions and asserting that success is a given and that failure is impossible. When you do this, you obscure your vision of reality with a false version that feels safer and more comfortable—until of course you step through the cracks and fall.
Confidence on the other hand acknowledges that failure is a possibility (or even a likelihood). Confidence is not about trying to cover up reality or blind yourself to the possibility that things are not going to go your way. It is not about assuming that you have everything you need to succeed, or even that you will succeed. It is about knowing what you want from the future, and projecting that vision onto the world.
That projection cannot take the same form as conceit. Conceit blinds you. Confidence needs to show you a path. The projection should take the form of actions that have a significant chance of generating a successful outcome.
Conceit is all about outcomes, but confidence is all about taking right actions.
When you take right actions, you are giving yourself the best possible chance of succeeding at binary options trading, or anything else you decide to approach, whether it is a job, a relationship, or a personal project. You cannot control all factors, and you can never entirely wipe out uncertainty or the possibility of failure. You can control yourself though and how you choose to deal with your circumstances. You may succeed or you may fail with a given trade, or with your trading career. But you can succeed at making the best possible choices given your circumstances. This is what it means to be a great trader, or a great person.
Use the links below to enhance your confidence in trading: