Trader's Queries - How to control over trading?
Query 1 : I start the day with profit, but at the end of the day I am in loss. How to avoid it?
Query 2 : My profit is going to brokerages only, I am not making enough profit. How to over come it?
Answer : One of the biggest causes for a trader to lose money is over trading. The emotion which causes is nothing but greed. A fearful person who hesitates to place order wont over trade, but he do wrong trades. When a trader wants to recover his loss fast, or when he want to make big money in few days, or when he is not thinking about brokerages, or when he is over confident about his trade, or when he thinks he is risking small amount, or when he trade for thrill or when he is simply gambling or when he is addicted the trader over trades without thinking about consequences.
Note : Write below in the comment why you over trade.
Right, now we have seen the reasons for over trading. Each and every reason needs different way of approach to rectify it, but one major understanding about market can reduce your over trading. Do market have clear trend daily? Do you see one direction move in market daily? No, of course not. So when there is no clear trend, don’t trade. When you don’t understand the direction of the trend, don’t trade. Make a rule that the trades you take should have more technical reasons and no trade when market is not clear. This simple rule will help you to reduce your over trading habit.
Query 2 : My profit is going to brokerages only, I am not making enough profit. How to over come it?
Answer : One of the biggest causes for a trader to lose money is over trading. The emotion which causes is nothing but greed. A fearful person who hesitates to place order wont over trade, but he do wrong trades. When a trader wants to recover his loss fast, or when he want to make big money in few days, or when he is not thinking about brokerages, or when he is over confident about his trade, or when he thinks he is risking small amount, or when he trade for thrill or when he is simply gambling or when he is addicted the trader over trades without thinking about consequences.
Note : Write below in the comment why you over trade.
Right, now we have seen the reasons for over trading. Each and every reason needs different way of approach to rectify it, but one major understanding about market can reduce your over trading. Do market have clear trend daily? Do you see one direction move in market daily? No, of course not. So when there is no clear trend, don’t trade. When you don’t understand the direction of the trend, don’t trade. Make a rule that the trades you take should have more technical reasons and no trade when market is not clear. This simple rule will help you to reduce your over trading habit.
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