I have seriously traded the FX markets just this past year and it is just recently that I have realized how important to be able to act quickly and decisively every time you trade. I really hate it whenever I hesitate to make a trade which, in hindsight, would have made money for me. I hope some of the experts can shed light and respond to this, because I've done this (hesitation trading) several times already and I just end up with nothing. It's not that I am afraid of losing money and it's not that I am just picking out my trades out of thin air (in fact I study them before trading starts and after trading ends). It's just that, whenever I see my levels based on my trading plan, I tend to wait for more confirmations and before I knew it, I already lost the opportunity to enter the market and make money.

I just want some feedback on how the others have coped with this. I am assuming that every trader has, at one point in their trading career, experienced this type of hesitation when trading the markets.

Certainly every trader doing manual trading has experienced this. For me I have decided the best way to deal with this, and in fact in my mind the most likely way to be successful at trading, is to have a set a specific rules that you've proven work well over a long period of time, and you follow those rules exactly, regardless of what your gut tells you! Half of the time your gut is right and the other half it is wrong, stick to the rules you have proven to yourself work and you will never have to hesitate again. Be strict and just do it! That's what I do now, and I'm making money instead watching it gradually slipping away like it did before I had set rules that I had proven and followed strictly.
Sorry for being long winded, but this is in my opinion the best advice I can give.

I don’t consider myself as expert but I consider myself someone who can cope with the situation you have just mentioned. I have one and a half year of experience in FX. Initially, I was like you but later I found out mistake, I realized that money management and risk management is something a trader needs most before he starts to trade. After you learn how to handle your own finance and understand your own level of risk you will be more confident and constant in your trading. Risk management to me is how much you can afford to loss in one trade; you have to work it out on your own.

I believe in acting decisively not quickly when come to trade entry. When come to how much to profit to take from a trade is based on the risk level you can afford. Sometimes I find entering trade in good position could be easier compare to exiting trade. If you have no idea try to take profit when 8 to 10 pips profit are realized. Also, try to concentrate on one currency pair.

Just a humble suggestion, hopes it would help.

Regards

This is a very difficult question/situation. There are so many possible factors and most, if not all of them, subjective. There are many resources over the web which you can go through. I found a very good resource at forexplane.com. It has all what we need to know about forex. Try to determine exactly what is causing the hesitation. If you are waiting for too many confirming indicators, then remove the most lagging indicators. If you have too much stress or tension, then trade smaller positions.

I think that in your case automatic trading could be a solution or at least a good experience.
I understand from your mail that you do some analyse beforehand in order to define key levels and after you act on these key levels maybe with the required confirmation of 1 or 2 indicators.
An EA could really help you for that. You can have a "semi automatic" EA, where you will enter your key levels manually and after the EA will act automatically on these key levels according to your strategy and the EA will not hesitate.
So you are still the brain behind the system and the EA will be just the "button pusher" that don't have any psychological concern.

I had the same problem. I think there are two solutions (you can do both):

1.Trade small amounts of money until you become more confident.
2.Automatic trading. (read jlpi's post - I like his point)

I think you must make a proven forex system based on your trading style ...stick on it ..and optimize everytime you've found weakness in your system...discipline and don't be greedy is important..cut your losses and let your profit run

==================
Forex Indicators Collection

It sounds to me like it's a mental or emotional thing if you are waiting for lots of confirmation. Maybe the need to be "right" so you don't loose the trade. I'm also wondering what kind of position size you are using? If your position size is too large it can make you BALK when the opportunity for a trade arises because consciously or subconsciously you know you have money on the line. If that is the case then lower your leverage significantly then over the coming weeks and months as you gain confidence in your trading incremently adjust your position size. Your position size should grow right along side your ability to handle a position emotionally or mentally. Lastly scroll back in time for many months and slowly scroll forward with your F12 key one candle at a time and use your imagination and see yourself putting on the position at the right time, and be careful not to cheat and look forward. If you do this like a trading athlete over and over and over again after awhile it will become second nature and thus a non-issue. cheers

Hesitation can be a good thing and can be used to your advantage.

It depends on the definition.

Hi, I have the very same problem of hesitation!! Recently I started to programming my trading logic into EAs so that it triggers trades and close them automatically. That way I have solved the hesitation problem provided that you dun interfere with the EA after optimization, you have to believe it, ie believe ur logic. So if you haven't tried using EAs, try now