Trading Coach Lessons - Stop Analyzing, Start Trading
There is much to learn when you first start trading, it is easy to be overwhelmed. As well as learning technical and fundamental analysis, there's also money management, risk management and mind management.
Once you have a grasp on those subjects, you need to work out which markets you will trade. As there's a lot to learn and many choices to make, many people get stuck in analysis mode.
For some, technical analysis is comforting as it seems very scientific. There are so many indicators to learn about that come with settings that can be tweaked, it is easy to believe that if you just spend time, you will find an indicator that will produce endless profitable trades. So, the beginning trader will combine a number of indicators into a trading system. They then have to wait until all of the indicators line up and point to an entry signal. The problem is, they often will be waiting a long time, as the specific combination of indicators is very rare.
My trading mentor once said to me, there's a difference between an analyst and a trader. It was not obvious to me at the time, but know I understand the meaning. For the analyst, it is more about the challenge of combining and tweaking indicators to build a system. They are quite happy to spend a huge amount of time creating theoretical trading systems and analyzing the markets. The problem is, the analyst doesn't actually get around to trading. They are focused on the past and look at the trades the system they developed would have found.
The trader, as opposed to the analyst actually gets past the point of analyzing and looking at the markets and begins to trade. They appreciate the need for backtesting and ensuring the system they'll use has a positive expectancy, but they get on with the job of trading, once they hit upon one. They have a trading plan and they have overcome their fear of losing. The trader knows that they should take every entry and exit signal, stick to the plan and that they can not be 100% correct.
Article Source: FxTradingStock.com
About the Author
More advice from a trading coach and how they could help you. Visit www.tradingcoachdirectory.com to choose the best trading coach for your needs.
by: John Peters
Total views: 4
Word Count: 364
Date: Tue, 27 Jul 2010
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