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-
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,