I don't have any problem making good market calls. In fact, I make GREAT calls. My problem lies in my execution of the trade. I second guess my analysis, analysis that I work hard to create. I developed a futures trading system, with rules that I bend on occasion, and it ranges from holding trades anywhere from 1-14 days. I guess it's a day/swing/position trade strategy. I have started to enter my trades STOPS first. This ensures that I am guaranteed to have my uncle point order in BEFORE my actual order is in. This makes me calm when it comes time to place my actual trade... Has anyone gone through this? Any other suggestions to overcoming this distrust?
Write down your trading plan in as much detail as possible, and then journal your trades to see how closely you are following your plan. Lack of hestitation in execution comes from a combination of 1) experience, and 2) understanding and trusting that your plan produces a positive expectancy over a certain period of time. Once you trust your plan then you won't be reassessing the situation (i.e., second guessing) when it's time to act.
ANALYSIS....PARALYSIS. This is common for newbies. For Pros, it's all about instinct,...and reactivity. Think too much.....and you've lost your "edge". Same with pro athletes. Equate trading to professional sports....and you'll be a winner...IF YOU"VE GOT WHAT IT TAKES. Let's see...latest stats: one in about 200,000 newborn males will make it to the NFL. Are you the ONE or the 199,999th ?
Do you think? I mean, pro athletes prepare...they practice...they setup what they can for the next day's work. Sure, a few curveballs will get past him, but for the most part, it's expected, and it's prepared for. Maybe it's just me, but my reactivity + action has proved fatal, though when I think about it, my REACTION + INACTION has proved equally fatal - i've missed alot of good 'instinctive' trades because I didn't act. I would say "I think copper is going down anytime now"...but instead of sell it, I end up WATCHING it. Then I'd go long silver and wonder why I was losing. These are huge mistakes, and believe me, I know them all too well because i've mostly corrected them. I do alot of right now, but still make mistakes And I think it has a lot to with trusting my instincts more.
"Think too much.....and you've lost your "edge"." "And I think it has a lot to with trusting my instincts more." I'd like to add to those two good comments. Thinking too much - Obtain a broad base of knowledge and wait for the bells and whistles to go off in your head - time is right. Which ties in with trusting your instincts. You need to trust yourself and I think that only proves itself over time and practice.