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What's the difference between Confidence and Vanity?

I consider myself confident, but some people think I am Narcissistic.
But then what's the difference between the two? And why is one good and the other is bad?
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My opinion - confidence is I know I have the tools and I’m willing to work to succeed. Narcissism is, I [i]deserve[/i] to succeed, and everybody should work to get me there.