Hello Everyone.
I am a junior swing trader, i have been trading for almost a year now. i would like to find out how you deal with Over trading, Under Trading, FOMO and being disciplined(Sticking to your T.Plan.)
I find me some with some many opportunities and those that I think are good those that get A+ after I check my trading plan don’t do very well and those I left out do massively well, then next time I end up taking all the trades, FOMO. Which leads to over trading and going against my trading plan rules. Then I also haven’t understood the idea that more trades doesn’t mean more money.
-My system fits 28 pairs
-I trade H1-D timeframes
my account is up, but according to my research, my habits are not fit for a successful trader. E.g My plan says 3 trades in a week, but its Monday and i have already taken 2 trades.
-should i reduce my trading pairs? should i trade certain timeframes only?
any answer will be appreciated.
You can certainly reduce your trade pairs from the 28 leaders we all watch.
Pull out from short time-frame charts to get some perspective - go to daily and weekly - here many groups of pairs are doing the same as each other.
Its not perfect or permanent but you must see this. Remember it is the big banks who move price and they’re not making bets on this pair or that pair: what they want to do is buy this currency and sell that one. They all operate in the same sector and all have very similar customers and all respond to the same fundaments and economics. Note the strong currencies, note the weak currencies: try to be long in STRONG/WEAK.
Just turning my laptop off and telling myself that I need some rest.
You need to read more about the psychology of trading.
You need to understand that you will be helped in different situations.
Each one of us has faced such issues at some point. Just give it a break and re-plan the process. Rushing is not the solution.
Thank you very much all your responses are really helpful.
All traders have problems with discipline in the market, you want to earn more, you want to experiment, you want to stand out…
How does your trading plan specify upfront 3 trades per week? Markets move in different ways all the time, sometimes trending, sometimes ranging, sometimes just drifting along. So it should be your trading style and plan that dictate how many trades you end up taking in a week?
Is your trading plan sufficiently specific in determining your choice of markets and entry/exit criteria?
If your plan provides the details then following your plan will, by definition, resolve all the issues you mention.
The only other factor which can override your plan is if you allow an element of personal discretion in assessing the value of a systematic signal set up by your plan. This is not a bad thing but is a separate issue to whether your basic plan is good. In this case you need to analyse whether, and when, you are trading according to your plan or in spite of your plan. A journal would be a good means for analysing this.
Most of what you are pertaining to is trading psychology. It is I think one of the trickiest aspects of trading. It is so simple to avoid doing it, like trade all the time - to make up for losses and stuff like that, but it’s also one of the hardest things in trading to maintain discipline.
I don’t think there will be any trader who would have benefitted from over trading. Over trading often leads to more losses than you would have avoided otherwise. Forex trading is a lot about making decisions on the basis of market analysis and overlooking your emotions. Make the most of your knowledge and enjoy a good trading career.
28 pairs wow!! Study a few pairs how they move in a period of time and be specialist in them pound, euro, carry trsde currency even commodities currency, or gold… but be focus how they behave and pit your method and strategies in that!
It is good that you have decided to recognise certain things that affect trading most days. Focusing on reducing stress and trying not to over trade can be of some help.