as a trader don't hesitate to pull the trigger
So many times as traders we do our analysis but when it is time to execute, we hesitate and just freeze until price moves past the low risk entry zone, then by the time we realize it we then execute at a higher risk entry. In my opinion, fear of being wrong is the reason for this hesitation and a lack of confidence in our strategy.
A trade you would have entered at a point where placing a stop loss would have cost you less, you then hesitate and price moves away then you come to your senses and enter the trade at a worse price.
I just thought to share this with other traders, have you had the same experience and how do you deal with it?
Well said, every second you hesitate, the possibility of a low risk entry slips away from you and you end up entering at a bad time.
Some call it the "afraid to trade" syndrome, where you know it is time to pull the trigger, but you just freeze in inaction until the opportunity passes. You then get upset with yourself and try to chase the market and end up taking a risky trade and losing.
I faced this problem to but the way i fixed it was that i don't stare at the charts for too long. Because the more you stare at the charts, the more you find a reason why your trade could go bad.
Once I open the charts and i see the setup i have been waiting for, I immediately pull the trigger and set my stop loss then close the charts. I then come back later to check how the trade is doing.
Some call it the "afraid to trade" syndrome, where you know it is time to pull the trigger, but you just freeze in inaction until the opportunity passes. You then get upset with yourself and try to chase the market and end up taking a risky trade and losing.
I faced this problem to but the way i fixed it was that i don't stare at the charts for too long. Because the more you stare at the charts, the more you find a reason why your trade could go bad.
Once I open the charts and i see the setup i have been waiting for, I immediately pull the trigger and set my stop loss then close the charts. I then come back later to check how the trade is doing.
Good morning, everyone, this thread is very educative. I would like to say being hesitant to pull the trigger could mean one of these two things:
1. It's either you want to trade with money you cannot afford to lose (you may also have reached your maximum loss limit for the day)
2. You are deviating from your trading strategy hence it makes you nervous (you may be about to trade a bigger lot size than what your strategy specifies)
Delay is dangerous; once you identify the candlestick pattern, just enter the market and place your stop loss above the candlestick pattern. You need to enter the market when the risk is lowest, so you don't end up setting a very wide stop loss. Don't be afraid of losing, it's part of the process.
I would say always wait for confirmation of a candlestick pattern before entering. I don't enter immediately i see a candlestick pattern, I place a pending order 2 0r 3 pips above the pattern and wait for price to go to the pending order and trigger it. By doing this, I avoid fake outs.