Why Most Investors Fail Before They Even Begin - Andy Tanner, Del Denney

True investor confidence stems from financial education, skill, and strategy rather than blind optimism, and it can be built through mentorship, a systematic approach to outcomes, and consistent practice.

• Confidence is knowing the outcome, rooted in skill and strategy, not blind optimism.

• Mentorship shortens the learning curve by leveraging others' proven experience.

• Develop systems and practice to manage outcomes, building unshakable confidence in investing.

Genuine investor confidence is rooted in a clear understanding of financial outcomes, distinct from cockiness or false bravado. It is cultivated by attaching oneself to experienced mentors who shorten the learning curve and by developing a robust system that accounts for multiple potential future scenarios. Consistent practice, even through simulated trading, further solidifies this confidence, transforming uncertainty into a predictable long-term advantage.

Understanding True Confidence

• 00:02:49 Confidence is defined as knowing the outcome of a situation with near certainty, such as flipping a light switch and expecting the lights to turn on. This contrasts sharply with cockiness or arrogance, which are inflated, unjustified feelings about one's abilities. True confidence is an accurate view of reality, not something that can be merely acted upon or portrayed; it's a genuine internal belief in a predictable result, which is crucial for new investors to understand.

Building Confidence Through Mentorship

• 00:07:24 While success and experience can build confidence over time, the most effective way to accelerate this process is through mentorship. By attaching oneself to highly competent and experienced individuals, one can borrow their knowledge and experience, significantly shortening the learning curve and alleviating fear. This approach proved effective for Andy Tanner in overcoming personal health challenges and initial investment failures, allowing him to gain confidence in real estate by learning from someone who had 'done it a thousand times'.

Confidence in Unpredictable Markets

• 00:18:37 In unpredictable environments like the stock market, confidence comes from narrowing down possible outcomes to acceptable scenarios and having a plan for each. Like a casino that doesn't know the outcome of a single roulette spin but knows its long-term profitability, investors can gain confidence by understanding maximum potential losses and gains, using probabilities, and balancing risks and rewards over many trades. Developing a 'tree' of potential scenarios ensures that no outcome is a surprise, allowing for acceptable plans regardless of market movement (up, down, or sideways).

Practical Steps for Investors

• 00:26:38 Investors can take concrete steps to build confidence, including consistent practice through paper trading to experience both successful and well-managed losing trades without real financial risk. Seeking out mentorship, such as participating in a mentor club where experienced traders demonstrate their process weekly, offers invaluable real-world learning. Additionally, utilizing free resources and engaging in weekly financial self-assessment can help individuals track their progress and watch their confidence grow as they see their financial plan working.