September 14, 2014

Analysis and trading results

There is an inverse relationship between analysis and trading results.

More analysis or being able to make distinctions in the market’s behavior will not produce better trading results. There are many traders who find themselves caught in this exasperating loop, thinking that more or better analysis is going to give them the confidence they need to do what needs to be done to achieve success.

This trading paradox is something that most traders find difficult, if not impossible to reconcile for the simple reason you can’t use analysis to overcome fear of being wrong or losing money. 

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