Trading Tips

Overcoming hesitancy in trading

I saw this on a forum recently:

A lot of times I will hesitate to get into a trade because I’m too risk averse.

Fear of taking a loss is often the cause for hesitation pulling the trigger on a trade and the easiest to deal with. For those in this situation, the best advice I can offer is to cut your trading size down to the point where any loss you may suffer is so small as to be inconsequential. If you’re not going to feel any pain from losing then you should be able to trade without that hesitation.

Now, if you still struggle to pull the trigger then you have a confidence issue. I’ve addressed some aspects of this in the post Afraid to Trade? Build Your Trading Confidence. For some people, though, the issues are more deep-seated. For example, the forum poster I mentioned talked about his issues talking with women. That means his problem isn’t trading-specific, so he likely needs a broader solution to his confidence struggles.

Have you struggled to pull the trigger? If so, how did you overcome that?

By John

Author of The Essentials of Trading

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