Q. “Timon I must have the worst luck in the world. When I take a trade (which is VERY seldom) I lose. When I don’t take the trade, it rallies to the take profit. Do you have any ideas why I just can’t get it right?”

A. It is a very common problem I assure you.

I want to explore THREE common reasons why traders fail to take the ‘right’ trade…

#1: The market moved too much

One of the most common reasons is traders hesitate is because they think the market has already moved, and they fear they have missed the opportunity.

But the market is constantly in motion, the train will move and there is always an opportune moment to get into a trade. A sound trading strategy should account for different market conditions, and provide clear entry and exit points.

#2: You’re scared to lose the trade

FOLO or Fear Of Losing Out is another common reason traders hesitate to enter a trade.

While it’s natural to want to avoid losses, a sound risk management strategy, including setting stop-loss orders and managing position size, can help you to minimize potential losses and build confidence in entering a trade.

#3: No trust in the strategy yet

You might hesitate to enter a trade if you don’t have faith or confidence in your trading strategy or system.

In this case, it’s essential to go back, review and test the strategy, ensuring it aligns with personal trading goals and is backed by sound research and analysis. You do this by paper trading.

When you build trust in a trading system, and you take the time and patience to see the good and the bad, then your confidence will grow.

Here are a few other reasons you may not be trading or end up taking a losing trade…

Is it because:

1. You don’t trust certain markets
2. You don’t have enough money to trade the different instruments
3. You don’t have confidence with yourself, discipline and emotions yet?

Remember a sound strategy goes a long way to overcome the above. Focus on bedding down a trading system and you wil start to see consistent returns.