There are a few key things you can do to avoid overconfidence in trading:

1. Know your limits: It is important to know how much you can afford to lose before entering into a trade. Overconfident traders often disregard this rule and end up taking on too much risk, leading to large losses.

2. Do your research: Before making any trades, it is crucial that you do your research and understand the market you are investing in. Overconfident traders tend to take unnecessary risks without fully understanding the market or their investment.

3. Be humble: Be aware of your own limitations and do not let your ego get in the way of making sound decisions. Overconfident traders often think they know more than they actually do and this leads to poor decision-making.

4. Have a plan: A good trading plan should include entry and exit points, as well as risk management strategies. Having a plan will help you stay disciplined and avoid overtrading, which is often the result of overconfidence.

5. Stick to your plan: Once you have a plan in place, it is important to stick to it and not let emotions or greed get in the way of following your plan. Overconfident traders often abandon their plans when things don’t go their way, which usually leads to further losses.