By now I believe almost every trader strongly believes the importance of confidence in the world of crypto trading , confidence have helped me alot when trading , confidence have helped me to avoid alot of unnecessary FUD and so much more..
But in life, too much of alot of things can be bad..confidence is good , but too much of it can also be damaging too if the person is not careful..
A true life experience here , I had a friend some days ago , he sold all his cryptos , converted them into usdt and told me he wants to use it to purchase ethereum and he will be doing it on futures and not spot..I said why , he said because he wants to make use of the leverage provided in futures trading and make very huge money when the buy trade goes in his favour, and then I replied "what if the trade goes against you"?? He insisted, it can never go against him ..he was extremely confident that ethereum will not go down in the last 48 hours because of the news of the merge...
He refused to listen to me when I told him not to put all his money into purchasing it, I advised him not to put all his eggs in one basket but he refused to listen because of over-confidence..Guess what ?? Etherejm went as low as 12% , the dude lost all his money since he used a very high leverage when he traded the etehreum on futures.. and now he is feeling very sad.. That is how damaging over-confidence can be ..
