I'd be interested in others' perspectives about this. I have some signals that work very well, which were developed over a fairly long amount of time. I often correctly anticipate a move, meaning my analysis was right, but sometimes I fail to trade my plan. The aggravation of missing the gain that would have resulted from following the plan then sometimes results in a revenge trade that is opposite of the original plan (!).
Say for example I had a plan to buy a dip and rip open, but perhaps I didn't time the dip entry well enough to feel comfortable chasing; but (presumably to avoid the pain of a "missing out" feeling) I then go short too early into the move up, as if to convince myself that I didn't miss out because my original plan was wrong anyway.
Of course in reality, a later, riskier entry into trading my plan would have been much better than trading what was not even a plan, but was just a reaction to a failure / missed opportunity.
The most brief way to summarize and generalize the problem is: can someone have strong skill at analysis and planning, but poor skill at executing (i.e. quickly and decisively pulling the trigger in the heat of the moment)?
If so, what causes the skill gap between these two stages of making a trade?
I think that one aspect of the problem is that it's easier to pull the trigger reactively than to do so out of faith in the plan, because being reactive is easier than being decisive. Being decisive seems to be a skill unto itself that is related to emotional intelligence. What are all of your thoughts?
Say for example I had a plan to buy a dip and rip open, but perhaps I didn't time the dip entry well enough to feel comfortable chasing; but (presumably to avoid the pain of a "missing out" feeling) I then go short too early into the move up, as if to convince myself that I didn't miss out because my original plan was wrong anyway.
Of course in reality, a later, riskier entry into trading my plan would have been much better than trading what was not even a plan, but was just a reaction to a failure / missed opportunity.
The most brief way to summarize and generalize the problem is: can someone have strong skill at analysis and planning, but poor skill at executing (i.e. quickly and decisively pulling the trigger in the heat of the moment)?
If so, what causes the skill gap between these two stages of making a trade?
I think that one aspect of the problem is that it's easier to pull the trigger reactively than to do so out of faith in the plan, because being reactive is easier than being decisive. Being decisive seems to be a skill unto itself that is related to emotional intelligence. What are all of your thoughts?
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