Why You Don't Hold Back on Your Trading Strategy

Many traders struggle because they just can’t stick to one trading strategy until they master it. If you are a trader who keeps hopping from one strategy to the next, it’s going to be very difficult for you to start making money consistently.

One thing you should know about trading strategies is that none of them is perfect. In other words, you are not going to find one strategy that works all the time. If you are going to become consistently profitable, you must be willing to stick to a particular strategy even through its drawdown period.

Another Achilles heel for many traders is holding back even when their strategy clearly indicates that they should make a move. There is nothing more irritating than knowing you should take a trade, not taking it and then realizing that your instinct was right.

How do I avoid holding back on my trading strategy?

The first step is to try to figure out why you are so hesitant to pull the trigger even when the charts and your gut feeling agree that you should. Once you know the cause of the problem, it becomes much easier to start finding a solution.

Here are some of the reasons why traders hold back on their trading strategy:

1. Fear

Fear can be a big barrier for any trader. When you have suffered many losses, your confidence can desert you and leave you fearful of entering into trades. In such a situation, your past experiences will be playing on your mind causing you to hesitate or freeze altogether.

2. Risking too much

When the stakes are very high on one trade, it’s very easy for you to hold back. This is very common with traders who risk a large portion of their trading capital in a single trade. The pressure causes them to overthink and they end up not taking any trades.

3. Lack of clarity in your strategy

When you don’t fully understand the ins and outs of your trading strategy, you will find yourself holding back from time to time. That is why your strategy should be as simple as possible. With a simple swing trading strategy, you can start turning profits in a very short time. Nothing has to be too complicated.