Let me ask you a direct question and try to answer it honestly: do you suffer from Forex Analysis Paralysis?
Do you ever find yourself not being able to make a decision whether or not to place a trade, at which price to enter the market, where to place your Stop Loss and Take Profit prices? Do you agonize over this decision so badly that you end up doing nothing at all?
If so, you may be having a case of analysis paralysis, when you think so much about something that you just don’t ever make a decision and end up doing nothing at all (which is also a decision by itself, but that’s the topic of a future post).
The reason why it can be hard to make trading decisions is that you’re placing your money at a certain risk. You can’t help but worry about how this trade or the next are going to turn out.
However, you must also remember that NOT being able to trade quickly and efficiently will also cost you money:
- You may miss opportunities of a profit.
- You may not get into the market at the right time due to your endless thinking.
- You’re going to waste a lot of time you could have used to seek out new possible trades or to get a more advanced Forex education.
Always worrying about your trading can also lead you to have anxiety and to hate trading altogether.
The best way to eliminate Forex Analysis Paralysis is to get a proper Forex Mental training such as the one in the Forex Mental Fitness program and to trade with a system.
Trading with a system is very important as it takes much of the paralysis and thinking out of the trading process. As long as you have a trading system you can use and trust, you don’t need to think too much about when to enter a trade, when to get out, and so on. You have simple rules to follow and that’s it.
A trading system gives you a framework with which you can trade with confidence. You won’t need to suffer from analysis paralysis ever again.
There are many systems you can use, including some I don’t know myself. One system that has excellent results is the LMT Forex Formula by Dean Saunders which is pretty simple to use, but you may choose to trade with another system. It’s up to you.
However, it’s crucial that you use a system to be able to trade calmly and with confidence from now on.
