For a start it is still necessary to determine the terms. I propose the following interpretation: indecision - the trader inaction in situations where, for whatever their own rules, he should enter the market, as well as of the trader, leading to the untimely closure of profitable or unprofitable positions; paralysis - the next stage of indecision, occurs usually after non-compliance of the order (protection against losses) in the event of an avalanche-like increase of losses. In the end, should close a losing position broker (for lack of funds) or spontaneous emotional closing position by the trader.
In my opinion, these problems are more inherent to still beginners, because if a person has worked for two or three years on the market, it faces a different kind of psychological problems. Therefore, all subsequent arguments are, rather, to newcomers who are just planning to enter the stock market or have recently plunged into this environment. From my observations, the trader indecision is manifested most often in the first period after launch. The problem of indecision as to the definition, involves two aspects: first - to enter the market, the second - out of the market. The most interesting is that despite all the evidence the second aspect often overlooked in the general description of trading strategies. For the beginners at first rather difficult to understand the ever-expanding variety of indicators - and not at book examples, not on a demo account, but on their own money - and to evaluate the significance and interactions of these indicators. During this period, it is important to understand that psychologically comfortable trader - to hold a position between the days or only work within the day. It is with feelings of inner peace and should be adjusted to work not only a combination of (their) indicators, but the time scales of operation.
As rightly observes A. Bryuzgin in his article, limiting the number of methods and indicators used much easier life trader. I would like to draw your attention to the fact that the simultaneous use of trend indicators and oscillators in the initial phase and may significantly complicate the work of the trader, especially considering that the last time a large number of analytical reports on market terms <overbought / resold> there are often unreasonable. The transition to the study of trade practices on the basis of Elliott waves, with their variety of interpretations, it is possible only after the successful development of simpler methods.
An ounce of practice or theory poods?
Just as with the choice of indicators, the restriction of <time slices> of the market greatly simplifies life. I have seen traders who tried to work on exotic time intervals, for example, a 23-minute combined with 36 - and 53-min. After that select other time slots, all over again. Naturally, in the process of studying the interactions of the basic 23-minute chart with a 48-minute completely lost the purpose for which any person comes to the market - to make transactions and earn money. If the theoretical refinements trader clearly take precedence over working directly in the market, the only advice I can give chto in this situation - get to work by the analyst. So people do not help and mechanical trading systems, because after receiving a signal from the MTS still need to act and not to engage in its regular setting, comforting myself that and MTS also wrong and this signal <exactly> - false.
As can be seen from the definition, should be attributed to indecision and inaction-action at the time of finding a position. That uncertainty does not increase profits (if the position is selected correctly) and allows you to accumulate losses. Naturally, when the paper profit on the transaction increases, the faster really want to turn this into an actual profit and no longer drag myself to the psychological burden of open positions. Perhaps, this situation is decisive in the choice of time intervals with which the trader to work comfortably. The correct choice of this interval may help in resolving the issue of premature closure of a profitable position. Exit position with a restriction of losses is the cornerstone of all activities of a trader, and indecision when you exit a losing position may result in complete loss of control.
If the stop-loss orders, placed on the basis of technical analysis is not performed because of indecision, then try to set the maximum amount of losses on the portfolio per month (for example, 5%, as traders restrict banks), and if losses exceed this amount - immediately liquidate all positions and do not start to trade until early next month. Otherwise, you just fill up the ranks pretty harmless little animals with which they cut hair professionals. So, if you violate this rule, have lost more in percentage you set the same values, but the position is still open, it is likely onset of paralysis. Determine the state of paralysis is simple enough, and although different people have emotional manifestations of this condition are different, there is a trader slang for long term (warm bath).
When you get into paralysis <warm bath>, consisting of his own sweat, fear and despair. And it is very contrasting state - at times the market moves in your favor you will get temporary relief, even experiencing elation, and then another, deeper plunge in (warm bath). At this time, you are no longer able to adequately assess not only the market, but many things around you, not associated with the market.
You proofread comments of experts in the hope of encouraging words about the imminent spread and angry when stupid analysts see no sign of the long-awaited reversal. Are you ready all night to watch the rest of the world trades from Japan to the States. I think it is not necessary to explain that when the state of this you just need to close all positions and for a time to leave the market. And it's better to do it yourself, but do not leave an unpleasant procedure to your broker - believe me, he is also no pleasure. If you think of the category of people who state such a pleasure, sooner or later you will lose everything and will seek other, cheaper pleasures, than the pain of loss test on the stock market.
We form a portfolio
In terms of recommendations for overcoming Bryuzgin indecision, then, in my opinion, the recipe for a trade paper just does not hold water. Fixation on a paper not only help you to overcome indecision, but also can exacerbate your problems. You do not become an expert of one paper. Such a strategy is more risky emotional attachment to the position. Even if you have enough determination to enter the market, then get out of it by selling a paper, much harder.
There is a danger of a certain narcissism - you'll enjoy the position in the instants of the profit, (care) for her as a sick child in times of loss, but had never been to <shoot>. And during a lull in the paper will experience more and more indicators and trading systems. As a result, you lose the big picture of the market. I, for one, is hard to imagine a successful dentist who specializes exclusively in the right fang of the upper jaw.
To overcome the hesitation to work as possible with plenty of liquid securities, especially because the Russian market are not so much. With this approach, the problem with the entrance-exit from the market mitigated by the fact that the discharge passes from the category of psychological engineering. You simply will not have time to concentrate on his indecision, since we have time to review some papers and place orders. This will more easily understood by the general trends of the market movement that will save a certain number of losing trades, and thus give you more confidence in their abilities.
If paralyzed, then go and tell others about it is useless to rely on dreams - no sense (rather, it is just another symptom), just need to close all the time and leave the market. Only this recipe to overcome the paralysis of effective, rather than the three (major steps), which writes A. Bryuzgin. However, I do not deny it (except for (position) of dreams) that the conduct of basic records of transactions and the existence of supervisory authority (even in the face of relatives and friends) to reduce the risk of falling into a state of paralysis.
Well, a few words in conclusion. By and large, the problem of indecision and paralysis - a small part of what is called money management. That expert management of capital, combined with mandatory risk assessments, and is the basis for long life in any market, not just the stock. We must understand that the market - no place for amateurs. If you want to be a professional speculator, working for their money, not the investor (sorry for the old joke: (bad speculator turns to the investor)), then approach the matter professionally. As a test of professionalism I offer the following problem.
When yields 60, 80, 100% per annum (choose) calculate the initial amount of money for the stock market, provided that you do not work anywhere else and get a monthly salary (!!!) from the market at 500, 600 .... 1000 cu (Select the appropriate size). Try to take into account all costs such as payment seats in the dealing room or use the Internet, brokerage, fees for margin loans (if you intend to use them).
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