Top 4 Ways to Stop Overthinking and Start Trading

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Top 4 Ways to Stop Overthinking and Start Trading

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.

In this article, we are going to see the top 4 ways using which you can stop overthinking and start trading.

1. Do not over-analyze your trade while entering into it

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?

2. Keep your trading plan simple to avoid overthinking and start trading

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.

3. Trade according to your own analysis; not according to external factors

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.

4. Trade with conviction

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.

1 Comment

  1. 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….

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