Overtrading can basically blow your account and your confidence too. It is not a good idea as you would basically be trading based on your instinct and not really taking care to analyse the market and trednds so well as you will be more inclined to rush.
In my opinion overtrading is an issues of all who start trading. Itâs really difficult to understand when you need to take a break from trading. I believe that youâd better do several deals per day and gain a little profit rather than do lots of delals and go negative. I think that couple of wins per day should be like a border, like okay Iâve done two successful deals for today so I am gonna end the trading day to exclude blowing of my account. It has to be a part of strategy, you know, because losses cause stress and itâs kinda hard to handle it and continue trading after a chain of losses.
A lot of traders, even professional, from time to time face âover tradingâ, I guess thatâs because this activity always bring a lot of stress for traders. When you start understand that youâre tired of this activity, youâd better distract from it on an uncertain time, until you organize your mental health. I believe that itâs okay for every trader sometimes to be burnt out. Even if youâre a master of emotions control and know trading psychology very well it doesnât defend you from over trading. You should always distract from trading in order to prevent the further deterioration of your mental health, because itâs fraught with bad consequences.
Absolutely. Everything depends on the personal wish of a trader, whether he/she wants to trade or not. I guess that overtrading is such an issue which makes lots of traders leave trading activity and never return to it. Itâs sad. The main thing every trader has to do is never give up, even if he/she faces overtrading, he/she must understand that itâs just a transitional stage in their activity and trading check them on endurance, you know. Of course there are lots of tips which can somehow influence and prevent overtrading. To my mind, the main tip is the complying with the regiem of work and relax. The vast majority of issues not only in traing activity are caused by the violation of this regime.
Over-trading is either:
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taking any trade outside of your trading plan, or
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taking any trade which cause you to exceed your maximum risk limits.
When you are doing this, there are chances that you are gonna lose your capital.
You can refrain yourself from over-trading by following these below mentioned points:
- Have a trading plan
- Refrain from trading all-day
- Limit the number of trades per day
- Take time-off after a serious loss
- Set stop loss and take profit limits to your trades
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Like the biological breakdown of overtrading nicely laid out
Good advice if you dont have a trading plan youâre in for trading downfall
many aspects can corny prevent you from working more efficiently and correctly, all the same, fear and other moments need to be fought in yourself
True @Jungletrader, Trading plan is very crucial to prevent oneself from overtrading. Most of the time it is our emotions that drive us to overtrade and we rely on dumb luck and gut feelings. Faithfully sticking to a trading plan checks those emotions from taking a toll on our trading.
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@gregorywallace said it well. I feel the major reason why 90% of the traders lose their money is because they overtrade and try to win against the market movements. Which isnât a healthy way of trading.
I agree with you, traders often get impatient to get maximum profits which leads them to getting loss instead.
Overtrading could be very much dangerous, as when you donât stop trading when you have to do it, you might end up losing every cent you have.
How you overcome from overtrading? Any ideas to me
I believe that overtrading can be overcomed by focusing only on the ways to make profits instead of considering forex as a quick money making machine.
@kuttytrader. Try to find the cause of your overtrading behaviour. It is often accompanied by greed, fear or other emotional vulnerabilities. When you overtrade, you are pushing your productivity and focus to the limits and the chances of under-performance are higher. The best way to overcome this habit is by having a trading plan and sound risk management strategies.
A trading plan is like a blueprint that will guide you through and for risk management strategies, focus on two things primarily: calculate your maximum risk per trade and the risk reward ratio.
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The main cause of overtrading is trading psychology. Whenever a trader enters the market, he obviously want to be profitable on it. Yet it is important to understand that profit doesnât come instantly, it requires a lot of patience, as well as skill.
But traders ignore this and in order to become profitable, they make faulty trades and end up blowing their accounts.
Today I did my morning trades as usual. Normally I would fret over them every thirty seconds and sell too soon.
But today I got locked out of the house at 10am and have been just walking around until the evening when someone can let me in. When I came back Iâd made 200$. I think I might just fire and forget from now on.
The main problems with overtrading are they lead you to losing your funds. Actually this is truth and every trader must understand this truth. In my opinion, traders often lead themselves to overtrading and it reflects on their results. If you started to notice that you canât handle th amrket, your strategies donât work, then perhaps you have to try relaxing from trading for a couple of days or even more. I try to take a break after a month. I donât trade every month during 4 days and itâs enough for me to restore my powers and understand the market from a fresh view actually.
In forex, overtrading can increase the greed among traders which can ultimately put you in high risks and losses.
The main issue of overtrading is that itâs kinda difficult to determine when itâs enough for you and you have to take a break. In my opinion, overtrading is such a thing which always interfere the life of a trader. If we will understand when itâs enough for us it will be easy to avoid overtrading and to my mind itâs a great form of art. Itâs almost impossible to determine whether itâs enough for you in particular day or not. The easiest outcome is to continue trading because it seems to you that you can do everything and nothing can break you down. However, unfortunately itâs not like that.