Maybe you know the current market conditions and you must enter the market soon. However, several reasons make you not do it. However, the next day, you regret not opening a trading position because you have missed the opportunity to get a very large profit. Many traders are still experiencing the same thing even though they are a professional trader. Why didn’t you open trading positions? Several things cause you not to open a trading position even though you know the trading setup you made is valid.
Let’s look at some reasons that make you have difficulty in opening trading positions:
Fear
According to Trading Psychology Edge, fear is probably the most significant emotion for traders. Fear of entering the market is a common thing experienced by novice traders or experienced traders who have just suffered significant losses. This fear can be caused because you do not understand the trading strategy that you have applied. Moreover, the level of risk per position you open is too large so that the loss you experience is quite large. But whatever the reason, this fear should not be in a trader who wants to be truly successful.
Lack of understanding
You may not fully understand how to use the trading strategy that you adopted. If this is the case, you can learn from the beginning again. Then, you can apply on a demo account until you understand.
For information, if you apply a lot of technical indicators that meet your trading platform, it will be so complex. You might find it difficult to parse and infer trading signals because of conflicting indicator signals. With effective and simple strategies such as the price action method that looks at market movements naturally, you can avoid the problem. With the price action method, you will only enter the market if the price movement setup has been valid.
Not confident
You may feel doubt your ability to be a successful trader. Whatever the reason, by doubting your trading skills, you will lose many good trading opportunities.
Overburdened by one trading position
A trader who usually determines a big risk, or even who tends to over-trade will tend to focus on one position only. Then you will be afraid to open a new position even though many trading strategies are quite valid. If you tend to over-trade by opening some positions that you know you shouldn’t do, you will also tend to be afraid of open trading positions after experiencing a substantial loss in the previous position.
Read more: Who Determines the Market Price?