Our brain is like a sponge. Sponge absorbs water until it gets fully saturated and after that there is no sense to put more into it as it will start leaking.

Our brain absorbs the information it receives and when it hits a mental saturation point you should better stop as too full brain may cause the following signs.

  • making mistakes
  • forgetting to do something
  • becoming indecisive
  • becoming unproductive
  • procrastinating
  • getting stressed out
  • experiencing a total mental break down
It is like a computer overload when it starts to run slowly taking longer time to process information, giving you error messages and after all crashing.

Every day traders have to deal with an abundance of information that may cause different problems such as:

  • Getting distracted by market related information overload.
  • Losing confidence while trying to absorb all the extra variables that start conflicting with each other, causing doubt and uncertainty about taking trades and that in its turn may lead to trying to absorb even more data such as economic reports and other news, as well as trying to use differing trading methods simultaneously.
  • Mismanaging trade entries because of the doubt of made trade decisions and trying to avoid failure.
To avoid these problems if you know you have reached a point in trading theory and have enough knowledge and skills to trade you should take action instead of trying to absorb more and more knowledge that will lead to information overload, over-analysis and thus unnecessarily questioning everything you do.

Experience is something that you can’t learn and after reaching a mental saturation point there comes a point where you should stop learning and start doing.

It is like if you have the right amount of water and soap in a sponge it’s time to start cleaning instead of trying to absorb more water and soap.
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