Understanding the Centipede's Dilemma

The centipede's dilemma highlights how overthinking can hinder performance in tasks that are typically instinctual or automatic. This concept is illustrated by a centipede that, when asked which of its legs moves the fastest, becomes confused and loses the ability to move effectively. In trading, this translates to how new traders often perform better initially because they trust their instincts rather than overanalyzing every decision. Recognizing this phenomenon encourages traders to maintain a feel-based approach rather than getting bogged down by excessive analysis.