Trading requires that you take decisive action. Implementing a successful trading plan quite often requires that you make quick decisions when the right market conditions come into play.
The more complicated you make your trading, the harder it becomes to make quick decisions.
We all know it can be hard to make trading decisions when your money is on the line. Most of us have a natural desire to avoid risk. Aspiring traders often deal with the fear of loss by over-thinking and over-analysis.
I have seen them vigorously studying one indicator after another, even though many are correlated, and convince them they are seeing the truth, when in fact they are showing them the same thing.
They study, looking to see if they have missed anything. I suspect that most of us have been through this kind of decision-making, but all too often it leads to mistakes in your trading. It’s not necessary to think so much and engage in paralysis analysis. You’re much better off taking the trade, following a few simple rules, moving on, win or lose.
Keep your trading simple. Trade what you see. Keep your opinion separate from your trading. Expect that there will be losses, you cannot avoid them. Trade with real money as soon and as often as you can, and consider it an investment that will some day bring great returns.