Unnecessary trade is a very common problem for newbies. Actually you do it out of confusion. You don't have trust on your strategy and yourself. You should have clear idea about your risk reward ratio and winning ratio. You lack confidence. It comes from not knowing what you are doing. Practice on demo find out your winning trade ratio. The main point is you have to increase your skills.
A lot of newbies think that overtrading would help them recover their losses. They must understand that nothing like that would ever happen. That’s what you learn with experience. The more experience you make, the better the trader you become.
salamibrish posted: A lot of newbies think that overtrading would help them recover their losses. They must understand that nothing like that would ever happen. That’s what you learn with experience. The more experience you make, the better the trader you become.
Absolutely. Overtrading is one of the biggest mistakes.
no way to avoid the importance of demo trading , bu the main problem is , the experience we took from demo practically not works when trading in a live account. so, traders don't believe the importance of this trading place.
Loss is inevitable in forex trading but you shouldn't feel dejected like you have said,if you get dejected every time you loose,then it would come to a certain time that you would not want to invest in forex again but if you carry on and you don't let your loss to weigh you down,I am sure you will be able to trade many more.
Overtrading is dangerous. Sometimes people overtrade because they are getting profits back to back and sometimes its revenge trading, that is when you trade to overcome your losses. Please don’t let these two situations fool you as the market is very volatile and you cannot predict the market’s direction a 100%.
MichaelEX posted: Unnecessary trades is a problem for those who are still struggling with self confidence. This can be solved only with knowledge, practice and experience.
Absolutely and I’ve seen that often traders make the mistake of opening lots of positions in greed or hope to hit the jackpot on some or all of their trades.
When I started trading, I started using the 15 minutes chart believing that more trades would equal more profit. I mean if one can make 2-3% on a trade that lasts for 2-3 weeks, what’s the harm in making the same in 2 hrs? Damn how wrong was I and late to realize that overtrading did nothing but exhaust my funds at a much faster rate.