Having to process a lot of market information and make quick trading decisions can be a challenge for most of us.
Imagine having to look into the results of an economic report, the underlying details, how analysts are interpreting the data, and how markets are reacting… all to come up with a quick trade decision based on a host of other information like price patterns, inflection points, and technical indicators in a matter of minutes of seconds!
If reading the previous paragraph made you feel like running out of breath, then you should know that’s exactly how your brain goes into overdrive when processing too much information.
Having to deal with that kind of info overload and pressure day in and day out can lead to “analysis paralysis” which can be crippling for decision-making.
In other words, too much information can be overwhelming for some traders, enough to discourage them from making trading decisions at all. It’s like a browser with one too many tabs open that it ends up crashing completely!
When you find yourself in this situation, take a step back and remind yourself to focus on crucial information only.
Of course, determining which pieces of information are crucial is easier said than done, and it does take some market experience to hone this skill.
A good way to keep things simple is to filter data points and legitimate news sources from opinion blogs or social media commentary.This isn’t to say that the latter content is unreliable, but you should try to make a habit of formulating your own thoughts based on the data instead of being swayed by others’ opinions from the get-go.
Also, keep in mind that most articles may have clickbait titles mainly to get more eyeballs and not necessarily to convey unbiased headlines.
While there’s nothing wrong with clicking on links that immediately grab your attention, it helps to be mindful of their impact on your perception and how it might lead to emotional trading. Read through the rest of the article to get a handle on what’s actually happening instead of reacting only to the headlines.
Looking for your own spot to record your market observations & trading statistics? If so, then check out TRADEZELLA! It’s an easy-to-use
journaling tool that can lead to valuable performance & strategy insights! You can easily add your thoughts, charts & track your psychology with each and every trade. Click here to see if it’s right for you!Disclaimer: Babypips.com earns a commission from any signups through our affiliate link. When you subscribe to a service using our affiliate links, this helps us to maintain and improve our content, a lot of which is free and accessible to everyone–including the School of Pipsology! We appreciate your support and hope that you find our content and services helpful. Thank you!