If you want to stop overthinking and start trading then, this blog is for you. Does this ever happened with you: you see a good setup then, you start to over-analyze it, and at one point in time, you feel less convinced about that trade without any valid reason. This is overthinking, and to stop overthinking and start trading, you need a clear mindset.
Overthinking is a common problem for all traders. New traders often overthink about a good trading setup, and when it starts to turn into a profitable trade, they aggressively enter into it. Overthinking can harm the trading performance, and it can also cause a problem in holding the winning trade.
Many traders think about too many factors while entering into the trade as a result, they miss a good trading opportunity. There are many reasons because of which traders overthink but, fear and ignorance are two common reasons amongst all of them.
You have to stop being afraid of losing money, and the best way to do this is to realize the fact that trading is a long game and it will contain winning as well as losing trades. The sooner you realize this, the sooner you will manage your risk more carefully. Remember, your trading edge has to play out over a long series of trades. If you lose some trades it’s perfectly fine because it is part of the game.
If you find a trade that fits into your system, go ahead and take it without thinking about it too much. Remember; there will be some factors that will not be in your favor while entering into the trade but, if you skip every opportunity, how will you make money?
Having a congested trading plan reflects that you are very much confused about trading, and this confusion comes from over-analyzing charts and trading based on external factors such as news and tips. It can also come from not knowing what you are actually doing in the market or not having your trading strategy mastered yet.
To solve this problem, the first thing you have to do is to clean up your charts that are flooded with lots of indicators. If your trading with lots of indicators, you are going to confuse yourself because every indicator has its own significance. Always trade according to price action and use a few indicators for your confirmation. It will help you to keep your trading plan simple, and you will trade with a more clear mindset.
News, trading websites, business channels, etc. they all create confusion in the mind, and because of this reason, the trader tries to over-analyze the market and become more confused. Many traders try to second guess or over-trade when they are influenced by external factors.
There is only one solution to this problem, and that is to ignore all the news, trading websites, or calls, and trade on your own analysis. Once you understand that all these influences are not helping you in developing a trading process, you automatically focus on your trading strategy rather than trading based on external factors.
There is nothing worse than finding a good trade that fulfills all the conditions of your trading plan but you don’t take it because of a lack of confidence. The main reason behind this is thinking too much about the consequences of losing that trade. I am pretty sure that you have experienced this at least once in your trading career.
Let me give you a practical example of this, You observe a good price action signal or chart pattern, and you are about to enter in a trade but, just a moment before entering the trade, you start to look at the things that are not really important after that, you start finding the reason why this particular trade might not go into your favor, or you read some articles or news that opposes your view.
The solution for this problem is, you need to learn how to trade from a mentor who is having reach experience in this field. You may think that you can learn to trade on your own, but in most cases, it is false. Getting the training from an experienced mentor will help you to avoid common mistakes in trading, and it also helps you to develop your trading psychology because when you trade, you put your hard-earned money on the line, and you want to take as little risk as possible.
Mastering one trading strategy and initially applying it to a demo account will help you to gain confidence. But remember, a Demo account will only test the technical aspects of your strategy, trading in a real account will test the psychological aspect of your trading. So, when you gain confidence by trading in your demo account, start trading in your real account, by using that strategy with proper risk management techniques.
Having walked the same path as you, I am also not an exception to these psychological problems. Hence, my main objective is to help traders recognize these issues and solve them through the Booming Bulls Elite Trader Mentorship Program. It will save them from the financial as well as mental pain which is often followed by such psychological problems.
You can escape from the cycle of overthinking, over-analysis, and trader’s insanity. To stop overthinking and start trading, I raise awareness about some of these mental traps and help traders to spot them and solve them through my mentorship program. Thus, you can create a routine to stay away from these in the future.
Please leave your comments and let us know about your experience of overthinking while trading, and also share it with your trader friends to help them to overcome their overthinking habit while trading.
If you want to know more about Risk Management & Intraday Trading Strategies you can refer to our previous blog on
Importance Of Risk Management In Trading and 10 Best Intraday Trading Strategies.
Open a Demat Account using our link to get support from us – https://bit.ly/3gyhIWN and send your ID to [email protected]
This happens with me a lot of time. Thank you so much Anish Bhai and team for your wonderful blog. It has helped me a lot?
Thank you so much Anish Bhai and team for your wonderful blog. It has helped me a lot.
Thank you, Mayank, glad that you find the blog helpful. We constantly try to bring helpful blogs for our traders and will continue doing so.
So good mindset and psychology
Thank you, Vishal, glad that you find the blog helpful. We constantly try to bring helpful blogs for our traders and will continue doing so.
Samjhane ka tarika is like smooth as a baby’s bottom….
Thank you, Sudarshan, glad that you find the blog helpful. We constantly try to bring helpful blogs for our traders and will continue doing so.
Sir trading ke liye start to end books he kya rahegi to suggest kriye please
Hello Varun, kindly visit: http://www.boomingbulls.com/resources to see the collection of must-read books picked out by Anish Singh Thakur himself that will help you develop your trading skill and personality.
I have experienced this ..whenever I take a trade always have fear of loosing and I have missed lots of opportunities because of that. But now it’s been 1 month I started reading your blog and gain little bit confidence ….thanks for this kind information….
Thank you, Bhushan, glad that you find the blog helpful. We constantly try to bring helpful blogs for our traders and will continue doing so.
seriously it is more valuable information, I dint found all information together, I faced all the above problems it is more helpful for me.
Thank you, Nagarjuna, glad that you find the blog helpful. We constantly try to bring helpful blogs for our traders and will continue doing so.
I am experiencing this everyday ? my all plans are correct , strategies are correct but because of overthinking i don’t take trades and lost so many opportunities , but thanks to Anish sir your YouTube videos helps me a lot ?❤️?
Thank you, Avadhut, glad that you find the blog helpful. We constantly try to bring helpful blogs for our traders and will continue doing so.
BEST ONE APPRECIATE EFFORTS THAML YOU