Self-confidence is an intangible quality that is a more accurate predictor of human performance and happiness than wealth, talent or genius. Like talent and genius, however, self-confidence is subject to both genetic and environmental influences. In addition, self-confidence is at least partially situational--a slightly built "nerd" may feel self-confident in the classroom, yet self-conscious and hesitant on the football field.
Self-Confidence vs. Self-Esteem
Self-confidence and self-esteem are often confused. Self-confidence is "the expected probability that a person will achieve a goal in a certain situation," according to Tom G. Stevens, Ph.D., psychologist and Professor Emeritus at California State University, Long Beach. Self-esteem is "a person's overall evaluation or appraisal of his or her own worth," according to Princeton University's WordNetWeb. Self-confidence, then, is unstable, while self-esteem is more stable. A person can have low self-confidence and high self-esteem at the same time, or vice versa.
Nature vs. Nurture
Until recently it was thought that self-confidence was almost entirely generated through environmental influences, especially parenting during early childhood. In a 2009 article published in "Psychological Science," however, behavioral geneticists Corina Greven of King's College in London and Robert Plomin of the Institute of Psychiatry asserted that a study of thousands of identical and non-identical twins show that genetics plays as dominant a role in self-confidence as it does in intelligence.
Loss of Confidence
In most cases, loss of confidence can be traced to failure. Not all failure, however, leads to loss of self-confidence. Psychological skills that allow you to maintain a positive attitude despite failure can help you maintain your self-confidence even in the face of defeat. Less resilient people are confident only after a major victory, become over-confident easily, and allow this overconfidence to pave the way for future failure and sudden collapse of self-confidence.
Prime Confidence
"Prime confidence" is a more stable, resilient variety of self-confidence that persists even in the face of temporary setbacks, according to Jim Taylor, Ph.D., performance psychologist and adjunct professor at the University of San Francisco. People with prime confidence focus on their own performance rather than comparing themselves with others. If you develop prime confidence, you will not only refuse to underestimate your own abilities, you will not become overconfident in situations where it seems that success is assured.
The Skill of Self-Confidence
Taylor takes issue with Greven's and Plomin's assertion of the genetic basis of self-confidence by asserting that self-confidence is a psychological skill that can be trained over time through mental exercises such as positive thinking. He notes ironically that negative is also a skill that can be developed through practice.



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