Over trading is a bad habit

Jan 03, 2021 at 07:19
1,859 Görüntüleme
24 Replies
Jul 19, 2020 zamanından beri üye   751 iletiler
Jan 03, 2021 at 07:19
Over trading is one of the reasons why people make their account zero. If any trade goes against they open new trade thinking that it will help then to recover the loss quickly. By these way they do over trading. It is a really bad practice.
Oct 28, 2020 zamanından beri üye   1 iletiler
Jan 03, 2021 at 11:33
😎 I very much agree with you, I was a victim of over trading, I end up losing my win trades.
Feb 11, 2019 zamanından beri üye   4 iletiler
Jan 03, 2021 at 13:14
@UweMoench thank you
"Lets dance"
forex_trader_2058895
Jan 01, 2021 zamanından beri üye   14 iletiler
Jan 03, 2021 at 21:43
Indeed it is, especially when one is on a winning or losing streak. When one is on a winning streak, one overtrades because of overconfidence. When one is on a losing, one overtrades because of the desire to win.
Jul 19, 2020 zamanından beri üye   788 iletiler
Jan 04, 2021 at 01:01
Over-trading is very harmful. It is never possible to become a successful trader by over-trading.
Sep 12, 2017 zamanından beri üye   238 iletiler
Jan 04, 2021 at 04:43
i agree with you on this, over trading is bad and one needs to make sure not to lose what is left after they have already incurred the losses.
Jul 20, 2020 zamanından beri üye   298 iletiler
Jan 05, 2021 at 00:27
It is not possible to sustain the investment by over-trading. Every trader should refrain from over-trading.
Nov 12, 2020 zamanından beri üye   23 iletiler
Jan 11, 2021 at 07:25
If you can’t control your emotions, you will end up overtrading. So, it is always advised not to let your emotions control your trades.
Dec 05, 2020 zamanından beri üye   81 iletiler
Jan 11, 2021 at 07:40
debragonzalez posted:
If you can’t control your emotions, you will end up overtrading. So, it is always advised not to let your emotions control your trades.
Well said! I think the best way put to avoid over trading, is to use a trading plan. That will surely be of some help.
Jun 22, 2020 zamanından beri üye   77 iletiler
Jan 11, 2021 at 09:47
Overtrading happens when you are getting over confident or not being satisfied with win/losses and yes, everyone should avoid the over trading as nothing good comes out of that.
Nov 16, 2020 zamanından beri üye   55 iletiler
Jan 29, 2021 at 06:28
Everything should have its own measure, and if you want to really be successful, you must be able to calculate and plan.
Nov 05, 2020 zamanından beri üye   54 iletiler
Feb 01, 2021 at 12:43
There is a moment when my fanatical start to trade, but this is wrong, because reaction and attentiveness are lost.
Apr 18, 2017 zamanından beri üye   718 iletiler
Feb 01, 2021 at 13:47
No way to ignore your point; but the fact is; you also need a healthy trading capital to be a satisfied Forex trader!
Jan 11, 2019 zamanından beri üye   147 iletiler
Feb 01, 2021 at 17:26
Yes, I agree with you. Trading CFD is risky and should be done carefully.
Jul 23, 2020 zamanından beri üye   869 iletiler
Feb 01, 2021 at 17:40
Gracewilson1995 posted:
Yes, I agree with you. Trading CFD is risky and should be done carefully.
There is on gain without risk. So, manage or reduce risk effectively to earn money.
Nov 19, 2020 zamanından beri üye   104 iletiler
Feb 02, 2021 at 06:38
It definitely is. When I had just begun with trading, over- trading was one of the major issues that I had faced at that time, but yea with good regular practice and planning, one can fight it.
Jan 21, 2021 zamanından beri üye   48 iletiler
Feb 02, 2021 at 09:55
Be aware of over trading, the eagerness of trading beyond the limit can cause a huge loss. Sometimes, traders do over trade to cover previous losses, it confuses the trader with frustration and leads to loss of their whole capital.
Jan 13, 2021 zamanından beri üye   29 iletiler
Feb 02, 2021 at 16:39
Definitely agree plus chasing loses is always a bad habit
Apr 25, 2020 zamanından beri üye   5 iletiler
Feb 02, 2021 at 17:44
I think it may be a good idea to define what 'overtrading' actually is.

Investopedia has a general definition of overtrading which says: 'An individual trader...will have rules about how much risk they can take, including how many trades are appropriate for them to make.Once they have reached this limit, to continue trading is to do so unsoundly. While such behaviour may be bad for the trader...it is not regulated in any way by outside entities.'

The problem is that 'overtrading' means different things to different people and defining it starts with knowing yourself and deciding what your 'level of pain' is for each trade and for your account drawdown. Once you establish that, you must always stick to those limits in your trading, or else you will be 'overtrading'.

Myfxbook has helpful tools like the 'Risk of Ruin' graphic for your account that can assist you to choose those levels.
Your MT4 terminal also has a tab called 'Exposure' which shows you your account's exposure to each currency from the aggregate of all your open trades.

It seems like many of the posters on this thread are talking more about initiating trades due to emotional impulses - so called 'revenge-trading' (where one loses a trade and then tries to 'get revenge' on the market by initiating more trades) and the like.

The disciplined trader, like in the Investopedia definition above, may also unintentionally overtrade his (or her) account by not paying proper attention to the available margin on the account as he trades.

Not only should one define how much risk one is willing to take on each trade by using a hard stop loss (can be placed either in the market or on your trade plan, but MUST be triggered if the market gets to it) every time, but be careful that one does not start trading on the accumulated equity of trades that are in positive territory but not yet closed out. I have seen trades that were up by a wide margin come back and stop me out, and if I had been trading with that equity as if it were actual 'money in the bank' it would possibly have triggered a margin call cascade and a large loss.

My point is the 'available margin' number on the account may lull the trader into a false sense of security and cause overtrading of the account even when trades are going the right way.

EQUITY MANAGEMENT is the antidote to overtrading as well as the key to long-term success.

Happy trading!
Start with EQUITY MANAGEMENT
Dec 28, 2020 zamanından beri üye   187 iletiler
Feb 04, 2021 at 09:14
Over trading happens when traders don’t limit their strategy even after going into losses. Don't be overconfident and analyse the market before opening any new position.
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