Do You Have Trading Analysis Paralysis?

A man has been going to the horse races for 25and I know that I am right a good portion of the
years. Before he goes, he researches everything hetime. I have begun to embrace uncertainty and admit
can find about the horses and the jockeys - theirthat I don't need to know where the market will go
age, weight, wins, and losses. He knows what thenext. If I stick with my trading plan and setups then I
weather will be and if the condition of the track willwill survive. There are thousands of tools ranging
be affected. He knows the odds on each race.from market profile, to candlestick analysis that will
Confidently, he places his bet. Next to him is a youngaid me to figure out what will happen next but at the
man who is attending his first horse race. In fact, heend of the day it could be one trader that changes all
just arrived 15 minutes ago. Placing his bet next toof it and makes me wrong. The more I accept this
the old timer, he picks a horse from random. Lo andreality the clearer I see the markets and the
behold, the new kid's horse wins. The old timer, withopportunities presented to me every day."
a tone of frustration mutters, "Beginner's Luck."Most traders are not worried about losing all of their
As a novice trader, you probably have had your fairmoney, but instead have a fear of being wrong.
share of "lucky breaks." You've probably also hadThey expect perfection of themselves, and when
times when you have pored over endless amountsthey do not achieve it (as they never will), they feel
of market information and made a "sure trade" - andlike a failure.
then lost your investment. Either way, it's not a goodResearch has shown that it is actually detrimental to
way to approach the game of trading. There needsfall into "analysis paralysis" when making a decision. Dr.
to be a healthy balance of analysis and just trading.David Armor and Dr. Shelly Taylor found that it might
Sure, if you make a mistake, you can lose yourbe wise to just quickly choose an alternative and
money - on that trade. But if you are a preparedfocus all your energy on achieving an objective.
trader, those losses should be rare, and besides, aSo when you start to see yourself over-analyzing
loss helps you learn for the next time.and becoming paralyzed, stop! Just make the trade.
Analysis paralysis is an informal phrase applied whenYou will feel free, and will trade more profitably in the
the opportunity cost of decision analysis exceeds theend.
benefits. When your hard-earned money is on theIn the mean time, Good Luck on your journey to
line, there's a strong urge to be extremely careful.success...
But, if you constantly search for more statistics,If you would like to immensely improve your trading
reports, studies, evaluations and data, you will comeand investing results, check out
to little real decision-making because more "study" orAND for a Limited Time, you will also receive a FREE
"research" always needs to be done!copy of a limited number of the amazing book
One trader we know says, "For a while I couldn't"Trading In The Zone" which is jam-packed with daily
come up with a trading plan because at first I wastrading ideas and psychological preparations to
making it too simple and I thought there was moreinstantly improve your trading and investing
to it. Well I found out that being simple was right toperformance.
begin with. I know that I am a good technical analyst