Having to process a lot of market information and make quick trading decisions can be a challenge for most of us.
Imagine having to look at the results of an economic report, the key details, how analysts interpret the data, how the markets react… all in order to come to a quick trading decision based on a host of other information such as price patterns, and reversals. Pips, technical indicators in just minutes!
If reading the previous paragraph makes you feel short of breath, you should know that this is exactly the reason why your brain becomes overactive when processing too much information.
Having to deal with this kind of information overload and stress day in and day out can lead to “analysis paralysis” that can hinder decision making.
In other words, too much information can be overwhelming for some traders, enough to discourage them from making trading decisions at all. It's like a browser that has too many tabs open and it crashes completely!
When you find yourself in this situation, take a step back and remind yourself of that Focus on important information only.
Of course, identifying important information is easier said than done, and it takes some market experience to hone this skill.
A good way to keep things simple is to do so Filter data points and legitimate news sources From opinion blogs or social media comments.
This does not mean that the latest content is unreliable, but you should try to get into the habit of formulating your own ideas based on the data rather than being influenced by the opinions of others from the beginning.
Also keep in mind that most articles may have catchy headlines mainly to get more attention and not necessarily to convey unbiased headlines.
Although there's nothing wrong with clicking on links that immediately grab your attention, it is beneficial to do so Pay attention to its effect on your perception And how it can lead to emotional trading. Read the rest of the article to find out what's really going on instead of just responding to the headlines.
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