- Reasons
- You just had a string of losses and you don’t dare to enter the next trade.
- You are not sure whether to take the entry signal, you do not trust your system completely.
- You were not paying full attention to the market, so your mind was not prepared to play, so you got stuck in indecision.
- You take too long to weigh all the arguments for the bull and bear sides.
- Chased market for fear of missing out. End up entering trades with stops being too far away.
- Might be the case where you detected hesitation, and you know hesitation is bad, and you simply brush hesitation aside without thinking and just enter the position.
- Solutions
- If you hesitated and missed the proper entry, wait for a retracement.
- If no retracement occurs, no choice but to miss the trade.
- It is better to take trades with limited risk rather than trades with bad risk:reward ratios.
- If the bull / bear case is 50-50, stay out.
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