Are You a Struggling Overly Cautious Trader?

The decisions you have to make to put on trades are crucial to your success.

Where do you enter? When do you exit?

How much money will you risk on the trade?

Do you have a trading plan that includes position and money management to address these questions?

Many traders struggle at the time of the perceived opportunity to place the trade. The primary reason is they don’t have a trading plan.

For that reason, indecision takes hold. It can take on the forms of not taking the trade at all to holding onto losing trades that result in sell at the low.

At other times, the indecisive trader will close out a winning position early to lock in small profits, but not based on their trading plan or one technical chart-based.

It’s to avoid the feeling of uncertainty, which cannot be removed in trading since there is no sure way to know what will happen in the next moments or tomorrow.

The Indicator Methodology Trap

The indicator salesmen will lead you to believe that their latest, greatest color-coded signals will ensure being right and profits, and you’re likely to pay for that illusion of certainty.  Will you pay again for the next indicator hype?

Overly cautious traders in an attempt to avoid risk obsess over being wrong. They seek out all information in an attempt to control the uncertainty of the markets.

They then checked their indicators again and relieved when the trade is gone.  

Indicators are a derivative of price and mask the valuable information price action offers to those who are educated to read that price action.

Many times, struggling overly cautious trader will search for all sources of information is an excuse for not taking on risk at all.

Taking a calculated risk for a calculated reward is Professional Trading.

Accept that no amount of information, technical indicators, or trading software will guarantee success.

Overly cautious traders are fearful traders. Fearful traders don't trade to win. They constantly try to avoid losing.

Rather than confidently trading and expecting success, they wait for their demise, which they think is inevitable.

By learning a proven time-tested method that calculates risk before the trade, your confidence and success will soar.

Overly cautious traders need constant reassurance. They seek out the opinions of others and hope that those opinions assure the right decision.  

Avoiding an honest look at your abilities and limitations leads to failure.

Recognizing and accepting limitations and then seeking out the help and education to overcome those limitations leads to success.

Being an investor and a trader requires taking calculated risks, and the risk comes with uncertainty.

The proper risk for your trading through education of a method, correct money management, and trade management removes uncertainty.

Sign up for our Swing Trading Course and add the Advance Position and Money Management for half the listed site price. At this link

Master Trader and You Building Your Financial Future Together!

All the best,

Greg Capra
Managing Director

Dan Gibby
Chief Options Strategist