Hesitation has a cost, and so does speed

[Fairman]

Hesitation has a cost, and so does speed

The signal appears. A hundred milliseconds of doubt. The price moves. The entry is worse by half a pip.

Discretionary scalpers deal with a different problem from systematic ones. The decision itself takes time, and that time costs money. A trader who always waits for one more confirmation pays in missed moves and worse entries.

The opposite problem is rushing. Clicking before the setup has formed. Responding to a flicker.

The right speed is usually found by studying past trades. How many were late entries? How many were early? Plotting entry timing relative to the ideal point often shows a consistent bias.

A trader who is habitually late can pre-place limit orders or set alerts. A habitually early one can add a waiting rule, such as requiring the candle to close.

One small trick is a pre-commit rule: decide before the session which exact conditions trigger an entry, and treat everything else as noise. Hesitation shrinks when the decision was made earlier, because the only thing left to do at the moment of the signal is check whether the conditions are present.

Is the entry bias towards being too early or too late, and has it been measured?