“Just do it.” – Nike.
Everyone’s heard it, everyone’s see it, and many of you wear it on those big dogs you call your feet.
But how many of you practice what the slogan preaches?
Do you ever doubt your decisions, particularly when opening or closing a trade?
Maybe you spend too much time analyzing everything possible and end up missing a major move in the market?
Do you hesitate at a significant point in your trading and miss a potential entry window?
Or maybe the data overflow has caused you to become one with your chair, and you can’t move anything except your eye lids, blinking in horror as you watch the market do the exact opposite of what you thought it would do?
Answering YES isn’t the end of the world, but it DOES mean you’re the carrier of a virus that’s been targeting novice and professional traders alike… you’re infected with analysis-paralysis! Protect the children!
If you’re anything like me, parting with your hard earned money always takes some self-convincing. And it’s understandable that putting your money on the line to trade can be particularly hard. I mean this is the possibility of losing it!
But many times it’s the attractive alternatives to one trade that cause your indecisiveness. You spend a great deal of time trying to decide which opportunity could become the most profitable that you end up acting too late or not at all. Other times, rather than make a move, some traders actively avoid making decisions because they doubt their talents and chances at being successful traders. So they procrastinate by analyzing and then analyzing some more. To even other traders, this procrastination signals a need to be perfect. The thinking here is that if they can trade perfectly, all insecurity in the market or at least the trade can be removed. But we know there’s always risk involved in trading, and no plan or strategy is 100% safe from failure.
But don’t fret, there are several ways to steer clear of your analysis-paralysis or at least limit its effects. For one, realize that you aren’t perfect and that you don’t have to be perfect to be a successful trader.
We all make mistakes, and that’s part of life and part of trading. Understand this and start taking action. Next, stop being a control freak! It’s not worth it. Every time you think you’ve got the market figured out, it sets you straight by taking your money.
Uncertainty is part of the game, so accept it. You’ll be better for it.
If you can’t make moves forward in your trading, try taking smaller positions and only use money that won’t break your bank if lost. Reducing the hit on your wallet from a loss will help calm you. It will be easier to get moving to the next opportunity knowing that you only lost the absolute minimum to enter the trade.
Finally, if all else fails, observe yourself overanalyzing and then STOP! Pinch yourself in the arm or leg if you have to. If you can’t do this to yourself, there’s more than likely a spouse, boy/girlfriend or roommate willing to take action on your behalf. The shear pain of it all will get you going in the right direction.
Remember that there’s a point where you have to JUST DO IT! You can’t be perfect, and you will make mistakes. But that’s okay! Do what I’ve outline above to fight the paralysis and TAKE ACTION.