Don’t Overtrade

Don’t overtrade.

Focus on the quality of each trade, not on the quantity.

One of the hardest lessons for a trader to learn is not to overtrade.

You will lose BIG if you continue to overtrade.

Every time you enter the market, you expose your capital to the market. The more you expose your money to the market, the better chances your money will part with you.

  • Pipmeup

    Simple but true. Cheers

  • Pipmeup

    Simple but true. Cheers

  • arob56

    I agree. Trading too much is a psychological aspect of trading that is hard to break. After manually trading for years, I finally started to make money by following trading rules used by professional commodity traders like Richard Dennis. These rules make it pretty black and white about when you should trade, how much you should trade, when to exit, stop losses, etc, etc. This system is very simple, but it has worked for years.

  • arob56

    I agree. Trading too much is a psychological aspect of trading that is hard to break. After manually trading for years, I finally started to make money by following trading rules used by professional commodity traders like Richard Dennis. These rules make it pretty black and white about when you should trade, how much you should trade, when to exit, stop losses, etc, etc. This system is very simple, but it has worked for years.

  • JEWEL

    Absolutely true, because to over trade is a very bad habit in trading forex. that’s another good one keep it on.

  • krewsey

    As a new trader, I have definately been affected by this despite being warned against it. I’m much more controlled now but still have a way to go and to have this issue highlighted again is a definite benefit. Cheers

  • krewsey

    As a new trader, I have definately been affected by this despite being warned against it. I’m much more controlled now but still have a way to go and to have this issue highlighted again is a definite benefit. Cheers

  • deanbo

    As a new trader, I have found the biggest risk in trading Forex so far to be myself. I’m only trading virtually (just as well) but I have check points now to protect myself from myself so to speak. This is what I have so far:

    1. No more than two trades a day.

    2. No more than two hours at a time in trading.

    3. No more than a certain percentage in profit in every trade. (Still not sure what the percentage is yet but anyway).

    4. Stop losses. Essential!

  • deanbo

    As a new trader, I have found the biggest risk in trading Forex so far to be myself. I’m only trading virtually (just as well) but I have check points now to protect myself from myself so to speak. This is what I have so far:

    1. No more than two trades a day.

    2. No more than two hours at a time in trading.

    3. No more than a certain percentage in profit in every trade. (Still not sure what the percentage is yet but anyway).

    4. Stop losses. Essential!

  • lookshines

    I guilty of this, i always feel i have to be in the market, thanks for these insight

  • lookshines

    I guilty of this, i always feel i have to be in the market, thanks for these insight

  • goodmast3r

    deanbo is right. The big question for me so far is how to be discipline to the rule that we made, like deanbo made.

  • goodmast3r

    deanbo is right. The big question for me so far is how to be discipline to the rule that we made, like deanbo made.