I get many emails about stock trading. Although the questions cover a wide range of topics, I usually read the same theme in between the lines: Uncertainty, fear, lack of confidence, etc. I can sum them up in one word: Indecision.
The number one challenge traders face is the ability to make decisions. When do I sell? I own too many stocks, what should I do? I see the setup, but I can’t pull the trigger and buy it. The stock turns against me, but I can’t sell. Don’t get me wrong, I don’t mind getting these emails because I genuinely like to help people…however, the answer to all these questions is usually the same: Make a decision!
You can have the greatest strategy in the world, but if you have no confidence in what you are doing and you can’t make decisions, then you are screwed as a trader. I don’t care if you have 15 super computers with all the information in the world. It does you no good if you can’t act on it.
So how do you remedy this? Easy, make a decision! Who cares if you make a bad decision, just MAKE ONE!!! If you are wrong, you’ll learn from it and make a better decision the next time. As Tony Robbins says: “Good decisions come from experience, and experience comes from bad decisions.” The key is to stop trading with so many fears and MAKE a decision. Who knows? You might end up making the right choice, which will increase your confidence and enhance your ability to make sound decisions in the future.