Apr 14, 2015

The Answer To Overtrading

"The answer to overtrading is not to discipline yourself to be less active, but rather to channel activity in creative and constructive directions." 

Every trader from time to time suffers from overtrading. In my particular case, when I am in a drawdown, I want to get back to new equity highs as fast as possible. That may lead to the temptation of overtrading, doing a few more trades than my trading plan tells me to in normal conditions. I found a good defense against overtrading and that is to study the markets further, do some historical backtesting and test slight variations on my systems. I just try to find some little things that are better than what I am doing at the moment, and then have the patience to wait for those trades to come along and be able to climb back up to all time highs.

Learn to trade like the very best, subscribe to the HMS Trading Newsletter.

My Trading Newsletter will help you if you want to shorten your learning curve, or improve some aspects of your overall trading performance. The topics range from:

1) The mental skills that are necessary for sustained trading success
2) The technical side of the markets
3) Tricks of the trade, the little things that traders with many years of experience discover by themselves and that are highly effective in trading

You can subscribe to the Newsletter on the right sidebar of the website. For only 14.99 USD per month, you will get a trading lesson, a trading podcast and useful trading notes every day from Monday to Friday on your email. "Invest in knowledge, it pays the best interest."

No comments:

Post a Comment