Traders spend too much time looking in the rearview mirror. They spend too much time overthinking, analyzing, and not enough time trading. This article lays out the 10 tips that traders need to do when they are trading in order to stop overthinking and start trading.
Why are you always overthinking?
Overthinking is one of the most common reasons why traders end up on the wrong side of the market. If you think too much - or too little - you'll find yourself unable to make decisions and stick with trades as they progress.
Why trading and overthinking doesn’t mix
Trading is a high-stress profession that requires ruthless focus and the ability to keep track of many moving parts. If you find yourself overthinking, it’s not because you’re making the right decision. It’s because you’re not confident in your decision-making skills. I recommend that you take more time to gain confidence with trading and then worry about what to do once you have it.
Making your mind up with a decision to trade and start trading
The only way to trade is to make your mind up about what you want and act on it. Too many traders are stuck in "paralysis by analysis" mode, and not making a decision. I challenge you to go out there and take the shot. If you think it's going against the trend, then that's all the more reason to do it, because trends reverse themselves frequently.
Paragraph: I know this sounds really simple, but so many people don't take action, they don't make a choice because they're waiting to find one right answer when in reality, life is anything but perfect.
Tips to stop overthinking
As investors, we are all guilty of overthinking our trades. It becomes a bad habit that can lead to faulty and time-wasting decisions. So, it's important to recognize the signs you're overthinking and take steps to stop the behaviour.
Conclusion
If your trading strategy is working well, there are two important things to note. One is that you must be patient and plan ahead. The other is that it's important to let go of the fear of losing when you start trading more.