The plan is all mapped out and all the little ducks are in a row. The trading conditions are perfect and the account is funded. The due diligence has been completed and checked over, twice. The only thing that is left is executing the trade. And it took so long to get yourself to do it that the optimal conditions have now passed and its time to move on to the next trade. And then the process repeats itself.



This is not uncommon for new traders who have yet to make enough executed trades to really call themselves in the game. Instead, perhaps you are dabbling. Perhaps you really want to get in the game and there is some invisible internal force that you cant shake in order to leap in there and join the party. You are experiencing a paralyzing psyche out. The good news is that you dont have to let the market psyche you out. You can choose to take control whenever you decide to.

It doesnt just happen to novice traders. Sometimes a trader that has been in the game for awhile experiences a sudden paralyzing time frame and for the most part, they cant explain it or understand it. This is especially common right after a significant loss or a losing streak.

It is easier to study and study and then go back to studying rather than taking that risk and getting your feet wet. It is actually more common than you might think. We just rarely hear about it because a great many would be traders stay in this state long enough that they convince themselves that they arent cut out for trading and they go out and get a day job. This is, of course and option and you are free to change your mind if the experience just isnt what you thought it would be. But if you really want to give it a try, then quitting before you ever really started is just letting yourself down.

What you are really experiencing is a fear of making mistakes. Even if your over all fear is a fear of failure, you end up failing by making repeated mistakes, not learning from them, and not making enough good moves. Making mistakes is human and yes, it is going to happen. You are not going to be a perfect trader and you arent going to win on every trade. You will probably make enough strong trades to cover your errors. There isnt a single trader out there that doesnt lose money from time to time. Not even the best of the best.

If the market is psyching you out (or you are psyching yourself out) try making some very small, conservative trades to get in the habit of completing the trade. Start with some very safe, very minimal trades in order to go through the motions with as little risk as possible. As you go through the process of completing each execution, you can start to build a little confidence. Of course, as you progress you might start making some larger, less conservative trades.

When you lose money, regroup and return to your baby trades if you have to. You arent really going to make any money at first, or very little, but breaking through your psyched out stage can help you hit the floor running as you develop better habits and finish out your trades.