I have found that almost all traders don’t even notice they're over-trading, therefore this drawback are often troublesome to diagnose initially. Over-trading is a problem caused by a number of different catalysts, however ,the main challenge comes from not knowing what your real strategy is, and not being disciplined enough to follow it, that is if you have one or changing into an over-confident mood. Let’s break down each of those issues therefore you'll be able to find out that square measure afflicting you…
If you don’t recognize obviously what you’re probing for within the market, which means you haven’t very learned a solid strategy, you're primarily planning to be gambling with no real edge up in the market. This causes over-trading Bottom line, you wish to truly learn the way to trade, and in fact, i like to recommend you learn a simple strategy like the price action strategy. You can order our training material on trading strategy Click here.
If you aren’t disciplined enough to follow your strategy and solely trade once a trade signal is confirmed, that's in-line with your strategy, you’re planning to fall victim to over-trading. So, you'll be able to see, it’s not enough to learned a technique, you furthermore may need to very master a strategy as well as have the discipline to stick to it like a glue.
Finally, for those traders WHO do have a technique and do follow it with strict discipline, the last massive hurdle to leap over is over-confidence. Over-confidence usually creeps in terribly quietly, ‘stealing’ your profits by influencing your behavior within the market. you have got to be extraordinarily VIGILANT to observe carefully if you aren’t jumping back into the market often (over-trading) just because you have got some positive trade recently and have become DE-sensitized to the danger within the market as a results of the positive feelings evoked by a winning trade or series of winners.
Let me give you the Summery of our solution to the virus of over trading;
1. Do Get a trading plan.
2. Be Discipline enough to stick to your trading plan.
3. Don't be overconfident Always scrutinize your actions in search for Overconfidence.
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