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A friend of mine once told me something very sensible. He said that confidence comes when you really believe in what you are doing. I realized that I'm unconfident because I don't know what the hell I'm doing.
I'm afraid to go hang out in a bar because I don't drink and I have no friends to go with, so why the hell would I hang out in a bar? I could go there and approach people, but why would I approach people I don't even know? What the hell am I supposed to say?
I agree with you. Confidence comes from knowing what you are doing. It is like when you play a sport. When you don't know what to do, don't have the skills to do it, you naturally feel unconfident.
Life is like a sport. You need the skill the knowledge to feel confident.
Lastly, confidence is relative. You automatically compare yourself to others even if you try not to. When you see someone better than you, your confidence goes down. Just like sport when you play a tougher opponent right away you lose confidence.
How I face this ?
By believing in myself.
So in sport, I believe that "if I try hard enough, I have a chance" or "even if I lose, I will improve".
In other words, change your way of thinking by looking for the positives in things.
However, this is all easier said than done.