3/10/2021 Thread by @Traderknight007 on Thread Reader App – Thread Reader App

Trader knight
Follow @Traderknight007 7,549 followers

15 Dec, 12 tweets, 3 min read

 Bookmark  Save as PDF  My Authors

Overthinking - The art of creating problems which weren't even there.

Thread on How Over-analysis leads to decision Paralysis-

What is Analysis paralysis?

In simple terms, analysis paralysis is a person's tendency to over-analyze or over-think upon a decision to such an
extent that he/she fails to make a choice resulting in a paralyzed state of inaction.

How a retail trader trades-

 Follow Us on Twitter!  Tweet  Share

https://threadreaderapp.com/thread/1338870607887253504.html 1/5
3/10/2021 Thread by @Traderknight007 on Thread Reader App – Thread Reader App

A trader named Rahul, He know all the basics of markets, He also has made a system which gives signals on nifty,
he has also encorporated good Risk management and Position sizing into his system.

One day he gets a signal to buy Nifty at 13500 with stop at 13450, he wanted to take the trade, but he wanted to get
sure that the trade he has take should be a winner.

So he says just let me check the RSI if its above this level I will buy , he checks it and it was above his

level, then again he wants to check another indicator named MACD, he wanted to get sure man, Now he do the
most intelligent thing to get sure he gets right.

He goes to twitter and ask his twitter Friend Trader knight he ask him that should I buy nifty at 13500,

Trader knight says nifty is already at 13550 , Rahul says in order to be sure he lost his trade.

So, this is story of many Traders out their.

How to get rid of this Analysis Paralysis-

1. You want to get right on every trade.

This is the biggest problem because of which you are going into this loop of checking all the boxes which weren't
even in your list.

Ask yourself why you want to be right every time?

Even when you know you can make big money even when you are right 30-40% of the time.

Whenever we have a setup, the first thing we can start telling to ourselves is that “this is going to be a losing trade
and I am going to get stopped out on this” . We EXPECT to lose on this trade but we don’t HOPE to.

There is a difference between expecting and hoping. We HOPE to win on this trade but we don’t expect to. When
we lose, we are ok as we expect and prepare for it.

When we do win, we give a pat on our shoulder since we expected to lose. Tomorrow we will start all over again

– again expect to lose but hope to win.

Think about it, only you have the answer to this problem.

2. KISS- Keep it simple stupid, Its not necessary that only a complex system will make money , simple systems are
less prone to the analysis paralysis problem.

 Follow Us on Twitter!  Tweet  Share

https://threadreaderapp.com/thread/1338870607887253504.html 2/5
3/10/2021 Thread by @Traderknight007 on Thread Reader App – Thread Reader App

3. You don’t have much experience (if you are a dicretionary trader) or you have not backtested your strategy,
because of which you may face this analysis paralysis problem.

4. You are afraid of losing money, this is one of the biggest reason traders have this analysis paralysis

There could be many reasons you are fearing losing-

1. You are trading with scared money.
2. You are trading too big.

Thanks for reading till here.

Cheers,

TRADER KNIGHT

•••

Missing some Tweet in this thread? You can try to force a refresh

 Tweet  Share  Email

 Keep Current with Trader knight  This Thread may be Removed Anytime!

Stay in touch and get notified when new Twitter may remove this content at
unrolls are available from this author! anytime! Save it as PDF for later use!

 Add to "My Authors"  Read all threads  Save this thread as PDF

Try unrolling a thread yourself!

 Follow Us on Twitter!  Tweet  Share

https://threadreaderapp.com/thread/1338870607887253504.html 3/5
3/10/2021 Thread by @Traderknight007 on Thread Reader App – Thread Reader App

1. Follow @ThreadReaderApp to mention us!

2. From a Twitter thread mention us with a keyword

"unroll"

@threadreaderapp unroll

Practice here first or read more on our help page!

More from @Traderknight007

Trader knight Trader knight

@Traderknight007 @Traderknight007

16 Dec 14 Dec

Objectivity- Undistorted by emotions or personal bias. What How even after knowing everything about your work, a series
is objective Trading? Trading in which decisions are taken on of emotional judgments can place you in a difficult situation.
pre-decide rules, decisions in objective trading are not A thread on how loss Aversion causes us to take irrational
decided by Feelings or opinions. decisions-

What is subjective trading? It is discretionary trading, in
which one uses his intuitions and Analysis to take trading
decisions. Is one superior to other? The rules in a mechanical
system are going to be decided by you, the plan is going to be
d b
Read 8 tweets
An experiment by professor Bazerman of Harvard. On the
first day of class, Professor Bazerman announces a game that
seems innocuous enough. Waving a twenty-dollar bill in the
air, he offers it up for auction.
Read 19 tweets

Trader knight Trader knight

@Traderknight007 @Traderknight007

13 Dec 12 Dec

The four stages of markets- 1. Accumulation 2. Markup 3.
Distribution 4. Decline Thread-
1. Accumulation phase- This phase starts after the completion
of a downtrend. In this phase the furious selling activity of
downtrend comes to a rest. During this phase there is a
gradual shift from sellers to a more neutral environment .
Institutions starts to show interest in stock, Because they can
not buy the stock in one time ;they buy it slowly over a long
Patience , A quality needed to be successful in markets. But
when the real capital is put at risk, The patience goes for a
toss. Thread on Why Emotions overtakes patience -
1. Mindsets- Decisions are taken by either the Higher mind
(Frontal lobe) or the Fear based mind . When decisions are
informed by our higher mind, they are more likely to lead to
positive outcomes. decisions driven by survival instincts from
the past can hold us back.

Read 15 tweets Read 14 tweets

Trader knight Trader knight

@Traderknight007 @Traderknight007

12 Dec 11 Dec

A man found an eagle’s egg and put it in a nest of a barnyard
hen. The eaglet hatched with the brood of chicks and grew up
with them. All his life the eagle did what the barnyard chicks
did, thinking he was a barnyard chicken.
 Follow Us on Twitter!
He scratched the earth for worms and insects. He clucked
https://threadreaderapp.com/thread/1338870607887253504.html
Why 90% of the traders even after winning 90% of the times
gives it back to the markets? Has this ever happened to you,
That you are up 10% on the month and you feel crazy, but the
next morning you give it all back to the markets? What
Causes You to Give It All Back? Thread-  Tweet  Share
4/5
3/10/2021 Thread by @Traderknight007 on Thread Reader App – Thread Reader App

and cackled. And he would thrash his wings and fly a few feet
into the air. Years passed and the eagle grew very old. One 1. Euphoria- It is the state of mind in which we can not
day he saw a magnificent bird above him in the cloudless sky. perceive risk, In state of euphoria nothing can go wrong. So
neighbour when you are in this state of mind, you feel invincible and
h h h ld h h f k
Read 5 tweets Read 10 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and
development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

 Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost
($10)

 Donate via Paypal  Become our Patreon

  Thank you for your support!  

  Help | About | TOS | Privacy | Covid19 Threads

 Follow Us on Twitter!  Tweet  Share

https://threadreaderapp.com/thread/1338870607887253504.html 5/5