Sometimes you’ll come across trades and just be completely sure that you should take them. And yet, you don’t. The next day you’ll see that really, instead of holding back on trading, you really should have taken that trade, or this one, and when that happens not only will you feel irritated, or even angry with yourself, but you might also even lose a little (or a lot of) confidence too, and that just makes the situation worse because the next time there is a trade you think you should take, your lack of confidence with make you hold back again. And so it goes.
Solving this problem of holding back on trading is going to be crucial to your ultimate success, and this article will look at how to do just that. So where to start?
The first thing to consider when it comes to holding back on trading is the reason why you just aren’t pulling that trigger when you know – you know not just because of a gut instinct, but because your charts are telling you – that you should go for it instead. There are a number of reasons why this might be the case – do any of the following sound familiar?
That’s it. Just that. Fear. Being afraid to enter into a trade, even if you know it’s the right thing to do, is probably the biggest reason why it happens. Perhaps you have suffered a loss in the past, or you’re not confident in your own trading strategy. Maybe you’re worried that you’re risking too much. No matter what the reason for the fear, it can be a big barrier and a big reason for holding back on trading.
If your trading strategy is unclear, then you will tend to find that you’re holding back on trading, even if you don’t intend to. If this is the reason that you’re not trading when you really should, it’s time to learn more about the art of trading in the first place, practice your strategy on a demo account, and ensure you are completely confident in what you are doing before you try again.
If you put too much emphasis on one trade, risking too much in the process, you’re putting yourself and your trading career under too much pressure. This can naturally mean that you are holding back on trading because you don’t want to – and potentially can’t afford to – get it wrong.
Now that you know why you might be holding back on trading, it’s time to fix the problem so that you can get back to being a successful trader, or make a start if this stumbling block has appeared early in your career.
You need to look for the trade signal – and not just look for it, but believe in it. After all, you didn’t spend all that time and research developing a trading strategy and a chart that will work for you just to doubt it when the time comes to use it, did you? So instead of worrying, when you spot the trade signal, you need to trade. That’s just how it’s going to work.
That said, you should never enter a trade you’re not completely confident in. This is where mistakes happen, and of course the more mistakes that occur, the more likely holding back on trading is to happen. So you need to fully understand your trading strategy and believe in it fully in order to trade as you should be trading.
Once you understand your trade signals, the next thing that is making you hold back on trading is a lack of belief in yourself and your ability to trade. Many traders manage to sabotage themselves thanks to a lack of belief, and they don’t enter into trades that would make them a nice profit.
In order to believe in yourself, you can start by looking backwards. Look at all the trades you would have entered into if you had had the confidence to do so, and note how many of them were successful. If many of them were, you can find that belief in yourself. If many weren’t, then you’re right to be holding back on trading, and it’s time to get more education. Either way, you can move forward with a plan.