Rabu, 01 Juni 2016

The Trader’s Cure – Stop Overanalysing


Every trader, at least once in his career has come across a trade setup that looks perfect at first but then when they start to analyse it, they begin to feel less and less sure about that trade. Unquestionably, it is good to study and analyse every trade setup before entering it but overdoing this process and overthinking about it can become a problem for you.

This is quite common in the trading world, traders often over-analyse themselves right out of a good trade setup and it can become a huge problem that can have several negative consequences on their trading performance.

The solution for this problem is simple, ignore these influences. You should focus more on mastering your strategy, sticking to your plan and accept the fact that those external influences only hurt your actions.

The next problem is psyching yourself out of a good trade. One of the worst feelings a trader can have is when he/she watches the very trade they left, take off in their favour. The sole reason of them not entering it was that they thought ‘too’ much about it. All the traders have been in this scenario once in their careers and the cure for this problem is again, simple, don’t think so hard about it.
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