4. Over-analysis Archives

Allow Your Trading Plan To Succeed


This is a trader question from the Fibonacci Trading Forum.

Vernon says:
I have the most difficulty with over analysis and Support/Resistance Zones that challenges me when it’s time to pull the trigger.

Neal’s reply;

The real problem is that you can’t catch any fish if you don’t put your hook into the water. If too much analysis stops you from trading, you are guaranteed zero success.

Sometimes it helps to step back and simplify. See my reply about finding high probability trades. Then make the decision to take the trade.

Let your trading plan work for you. Take the trades that match your trading plan. If you don’t trust the plan, then focus instead on making a plan that you can trust.

-Neal Hughes “FibMaster”.

Simple Trading Strategy Wins


This is a trader question from the Fibonacci Trading Forum.

Vernon says:

Here is one of my biggest trading problems;

With all the different Fiblevels and Support / Resistance zones in the different time frames, I tend to hesitate once these levels are near and therefore need further confirmations.

Once there is confirmation based on price action, there will be nearby SK Fibonacci Support or Resistance, and this make me wait and analyze further and probably miss the trade.

Neal’s reply;

It is important to keep the context of the trade in focus. What is the trigger? What is required to keep you in the trade? What is required to get you out?

If your setup and trigger is good, then the trade is under way until you have reason to exit. If some predicted support/resistance gets in the way, it will get you out. Or if the predicted support resistance is not strong enough, you will remain in the trade. Your trading plan takes care of that.

If the support/resistance level interferes with your setup/trigger, you will not have a trigger, or you will not have a good setup. Then is not a good trade according to your trading plan, so there is no entry.

So, take the trades on appropriate setups, and let your trading plan take over. Keep it that simple, to avoid analysis paralysis. Trust your strategy, trust that your trading plan will get you in and out appropriately.

What I am really saying is that a simple trading strategy will be a winner, instead of over-analysis and complication. Get back to basics, trade your plan.

-Neal (FibMaster’s Fibonacci Trading Course)

Pulling The Trigger


This is a trader question from the Fibonacci Trading Forum.

Martin asks:
I seem to be waiting for the optimum trade and then do not pull the trigger, but then see it go the way I thought it would.

Neal responds:
There are several primary causes of this problem;

Lack of confidence.
Over analysis/indecision.

We’ll discuss this in a future Fibonacci Trading Forum webinar.

-Neal (FibMaster’s Fibonacci Trading Course)