How do you avoid overtrading?

Beginner Questions
11

I always try and keep myself from becoming greedy throughout the day, but that’s only for my good days. My losses stop me from continuing on other days :smiley:

12

Thank you for sharing your approach!

13

Thank you for responding! I haven’t tried using EAs myself, but it’s good to learn from what others do.

14

Indeed, mastering emotional control is often easier said than done. It’s a continuous challenge but it’s also one of the most important aspects of successful trading. Thanks.

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15

Thank you for sharing! You’ve really put a lot of thought into managing your trades effectively.

16

Thank you! I’ll definitely keep this in mind.

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17

I stick to a strict trading plan with clear entry and exit rules, and I only trade when setups meet those criteria. It helps me perfectly to prevent overtrading.

18

I mean you trade when you have a set up per your strategy / system that is proven to be profitable.

If your problem is that you have a system and you are trading when your system tells you not to trade, then you just need to remind yourself you would probably lose money when you enter the trade.

If your problem is you like to lose money and regret it later, then you probably should seek help from a therapist…

Jokes aside, there’s only 2 outcomes to you placing a trade. Either you win money or lose money. You enter because you are overwhelmed by the thought of winning, and don’t wish to think about the possibility of losing. So just do everything you can to remind yourself of losing trades. Put up your biggest loss PnL on the wall, whatever it takes for you to remember the pain of losing.

And if you do it well and long enough, you will be facing the new problem of being too afraid to place any trades because all you think about are losses. Then you need to remind yourself that you have journaled your trades and they have proven to be successful with concrete data, and you need to pull the trigger when the setup presents itself. But that’s something to worry about later…

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19

I stick to my trading plan with clear entry and exit points. I also set daily or weekly trade limits and review my trades regularly to stay disciplined.

20

That’s an organized approach. It helps you track your trades across different currencies, Thanks for sharing!

21

How’s it been going with that approach? Have you found it to be effective in achieving your trading goals?

22

Switch to trading on higher timeframes. There will be many fewer signals for trades according to the trading strategy and there will not be such frequent signals and transactions as on small time frames. But here you need to be able to wait.

23

I mostly set daily trade limits and stick to them to avoid overtrading.

24

Just set a fix number of trade you’re willing to make for each day. For example, my personal preference would be 2 trades a day since I am a Swing Trader.

25

I struggle with sticking to my trading plan sometimes. Good to hear that works well for you!

26

Thanks for the advice! You’re right that trading isn’t about avoiding losses but managing them effectively.

27

Same with Amy95!

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28

Thanks for the suggestion! I’ll give trading on higher timeframes a try.

29

Thanks! Keep up the good work with your approach.

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30

Consistency is tough, but key. Keep at it; you’ll get there!