How do you know if you are overthinking it?

You'll know. Your gut feeling will tell you if you are overthinking it.

That's the straightforward scenario.

Then there are scenarios where you have a limited amount of time to make a decision. Scenarios where it's better to make the wrong decision than no decision at all. Once you exceed the thinking time you have available, you are overthinking it.

Then there are situations where you are facing a complex decision. You do the research and have to choose what to do. But instead of making a choice, you keep looking for new information, you procrastinate on the decision. If new information doesn't allow you to make a better decision, then you are overthinking.

Then there are cases where you do the research, make an educated guess and execute. But then, in the future new information comes to light. Then, you use the new information to course-correct. For some, that's overthinking. For others, that's iterative decision making.

Just make sure that the new information isn't emotionally biased. For example, if you decided to exit the market when the stock reaches a specific price, do it. Don't give in to the rush.

Overthinking is a personal thing. It's subjective. Some people feel they are overthinking after the first five minutes of considering a problem. Others consider something overthinking after weeks or months of pouring over a decision.

So next time you say to someone: You are overthinking it. Ask yourself if their behaviour is overthinking by your standards or theirs.

For whatever sad reason, people often perceive overthinking as something terrible, something that should be avoided. But often, we have way more time to think things through before we decide than we feel like.

So unless you are in a gunfight, don't rush too much with your decisions.

Take your time, mull it over, then pull the trigger. Be more like a sniper.