Hi, Can you share me tips on how to avoid over trade? Each time I hit take profit, I always get over confident and increase the lot size. Is there any tips to avoid that?
Position sizing needs to be proportional to expectancy. It’s about as simple as that. Whatever the appropriate position-size is, for the expectancy of the system you’re using, that should determine the “stake”.
There’s no logic at all in allowing the position-size of a trade to be dependent on the outcome of the previous trade. The position-sizing should be written into your trading-plan, and never deviated from. So I suppose my “tip” is “write it down and stick to it”.
yes, just dont do it
Increasing your lot size after a win is not over trading but bad Money Management, but if you still feel you are over trading, then try going a week without trading, if you can’t do it then your problem maybe a trading addiction.
As a new trader I think that over trading is not better for the Forex trader. To control over trading, you need to control yourself. If you can control on yourself than this is very better for you otherwise you will face so many losses.
In all honesty, this.
You could give yourself a hard rule to stop trading for the day after a specific number of trades/wins/losses. But it just comes down to discipline at the end of the day.
You need to have a trading strategy and follow it closely. Everything else is a matter of discipline, and unfortunately discipline is something only you can teach yourself.
there is No such thing as over trading if your following your plan or strategy. If you have no strategy, and just trade by the seat of your pants and intuition, then, maybe you can get burnt out by the stress of waiting for DD to come back to ya,
But if your trading a plan, if your plan calls for 20 trades a day, and your profitable, then were would the over trading come into factor?
as far as lot increase tied with excitement, thats your fault, stay grounded, stay with the plan. problem solved.
Azlan wasn’t asking about “numbers of trades per day”: in his question, he specified position-sizing/numbers of lots, not numbers of trades taken.
Guess we see the question differently.
Overtrading to me taking a bunch of trades in any given sitdown session, aimlessly entring to get back lost pips, or like said above, the thrill of gambling.
Or even mental fatigue.
Over adjusting lot sizes is a instantaneous mental error,
I guess, he was asking 2 questions actually.
I guess so.
When someone says “I always get over confident and increase the lot size. Is there any tips to avoid that?”, I see it as asking for tips on not increasing the lot size.
I think you are both right. Azian used the therm Overtrading in his title. Normally this is used to refer to making to many trades. But he described his problem as an money management issue. It confused me also.
You need to establish a set profit target or loss on the day.You have to operate based on a trading plan.
Standing up from your computer should be a good start.
I think as trader they need making plan trading, and in every plan they will have patience to waiting these plan has finished first before start with next plan, except they have strategy without stop loss like as martingale system, might will work until get margin call account
May be you should spend some time on trading psychology education.
Give yourself two weeks of trading to stop what you are doing…
The first week, you trade every legit setup you have according to your strategy/plan or whatever, when TP is hit at everytime you walk away - EVERYTIME for one week.
Second week you go back to do what you do now…
Now…after two weeks you sit down and ask yourself…which trading week made you feel good? There’s your answer…
You can either learn to suffer from the pain of discipline or the pain from regret… by the end of the day there is no tips on how to avoid or make anything happen other than following your own rules for trading and sticking to it…
Don’t trade full time, have some job, work or hobby to spend your time when you reach your target or when there isn’t any setup you are looking for.
You must follow a conservative money management procedure.Also, you can read this article…