Confidence is necessary but arrogance can be dangerous from "summary" of Reminiscences of a Stock Operator by Edwin Lefevre
There is a fine line between confidence and arrogance, one that can make all the difference in the world of trading. Confidence is a necessary trait for success in the stock market, as it allows a trader to make decisions and take risks with a clear mind and unwavering determination. Without confidence, a trader may second-guess themselves and miss out on profitable opportunities. However, confidence can quickly turn into arrogance if not kept in check. Arrogance blinds a trader to the risks and pitfalls of the market, leading them to make reckless decisions based on their own inflated sense of self-importance. This can be a dangerous game to play, as the market is unforgiving to those who approach it with arrogance rather than humility. In the world of trading, humility is just as important as confidence. A humble trader is willing to admit when they are wrong, learn from their mistakes, and adapt their strategies accordingly. This open-minded approach to trading allows for growth and development, whereas arrogance only leads to stagnation and potential financial ruin.- The most successful traders are those who strike a balance between confidence and humility. They trust in their abilities and instincts, but they also remain open to new information and willing to learn from others. This combination of traits allows them to navigate the unpredictable waters of the stock market with grace and resilience, avoiding the pitfalls of arrogance along the way.
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