View Full Version : Don't Overtrade!

07-03-2011, 11:28 PM
Don't Overtrade!

If you are experiencing a run of wins, don't get getting carried away in the flush of success. You don't want to give it all back.
Over Trading is the greatest single cause for losses in the markets. Whether you are winning now or losing now, ninety-five or more percent of all traders trade too often.
Even a daytrader trading a five minute chart has no need to trade every day nor to trade all day long. You should be filtering your trades so that you take only the best of the best.
Overtrading was a problem that took me a long time to overcome because I did not know what I was looking for. Overtrading is a very serious problem, and veteran traders learn to avoid it. In fact, one way to know if a trader is a mature professional is to know if that trader conquered the problem of overtrading.
The biggest problem with overtrading is that you don't even know you're doing it. You can overtrade by trading too many contracts (too much size), trading too often, attempting too many positions or sitting and staring at the screen all day.
One trader I met, who was following a system in twenty markets, received entry signals in fourteen of the twenty. The entry prices were such that probably only two or three of them had any chance of being filled. Yet this trader boldly called in to enter all fourteen orders. After the first six, his broker refused to take any more orders. Had they all been filled, the trader would have been several thousand dollars over margin.
Good traders immediately cut back on size when they are losing or have an equity draw-down.
The total commitment you make on any entry should be relative to a reasonable expectation of the profit potential for that trade. Each trade is different and must be weighed on its merits.
How do you know how many contracts to trade? Certainly you are in a pickle if you always have to trade in single lots. That is not to say that there are never times when a single lot is the right thing to do. Itís okay when youíre scalping , or trading options . However, wherever possible try to trade a least two contracts. You need one to cover costs, and the other to give you a profit.
If it's late in the day and you are a daytrader who normally does a five lot, perhaps you should use a smaller size due to the fact that the trade hasn't as much time to develop as one made earlier in the day.

05-31-2013, 03:40 AM
Yes it is true that we should avoid over trading. If we are getting god results in some trades in a day it does not means that we should continue trading all the time. We have to make our target after achieve them stop trading . Trading again and again can make your investment in risk again . You can loose your winning amount.

07-05-2013, 08:15 AM
you do not doing always over trade because it will be harmful for loss and loss of money so if you earn daily 10-20$ its enough for you

Master Forex IB
07-14-2013, 06:44 PM
I got $30 in 4 trades in a day . I think I can get more profit in trading . I continue trading . It bring a loss for me and my whole day hard work vanish in just minutes. I will suggest to avoid over trading . We should trade 4 to 5 trades in a day . After it quit trading either you are in profit or loss.

07-15-2013, 10:22 AM
Yes, that's right...
do not ever to over trade. it can make your emotion uncontrolled and making trouble in your trade..
don't make any targets in trade, and just follow the flow of water in your profit. Get little profit is enough...
Then you can find it more in next days...

07-19-2013, 02:11 AM
Right, not excessive trading, or your money will be set to 0. Because fee, so do not always think to do short-term, do midline transaction

07-23-2013, 03:56 PM
Do not NEVER to over-trade. Its advisable not to utilize more than 25% of your equity to trade. Do not add to lossing positions.

Douglas Class
07-25-2013, 11:39 AM
Greed and emotion is the biggest enemy of a forex trader. Never be greedy; its better to profit $1 than to loss $100. Small profits in a long run accumulates to a substantial amount

Master Forex IB
08-04-2013, 11:45 PM
Forex market works 24 hours it does not means we should trade every time when we are watching market. I took a lesson from over trading that I should make a target after getting it I should stop trading to be contented on my profits.Over trading can loose your earned money.

06-18-2015, 08:48 AM
Forex market works 24 hours it does not means we should trade every time when we are watching market. I took a lesson from over trading that I should make a target after getting it I should stop trading to be contented on my profits.Over trading can loose your earned money.

I absolutely agree. I try to trade precisely according to my plan, but sometimes I have a strong wish to continue trading because I hope to earn some money. It is difficult to stop yourself.

06-25-2015, 05:56 PM
When we are going in profits then we want to trade more and this is where most of us destroy our plans. In case of loss, we can try to have some extra trade to cover some loss but in profits, the extra trade mostly go wrong.

06-27-2015, 05:47 PM
Yes its very important to take break from trading every time you can , as over trading will lead to fatigue and stress which is bad for a job like trading which requires high amount of concentration.

08-11-2015, 04:27 PM
Hmmm, what are you doing while you are get bored in forex trading guys??

08-20-2015, 05:25 AM
Over trading is a very bad habit. Many traders think that they can make money money if they trade more. But instead they end up losing more. So if you want to make and keep that profit from trading, you have to stop over trading at all cost.

09-01-2015, 06:40 AM
And i agree with most traders here! i like the idea og Gunn: do not trade too often. that is really difficult for ur mind and body as well. enjoy trading not leave constantly with it

09-30-2015, 09:46 AM
Yes overtrading can be dangerous. You can lose all your money by overtrading. Though trading is addictive, but we should maintain the balance.

10-07-2015, 04:49 PM
And i agree with most traders here! i like the idea og Gunn: do not trade too often. that is really difficult for ur mind and body as well. enjoy trading not leave constantly with it

Yeah sometimes it happens like we are earning good and we tend to keep on trading, but we should take break, even if we are on a winning streak.

Umar Khalifa
02-17-2016, 02:23 PM
Over trading is one of the most horrible problems for traders. Basically, which traders can maintain money management and risk management properly they can avoid this problem. Personally, I use low trading leverage for my live trading account but I get big trading leverage offer from Trade12 broker. I seem, as a new trader big trading leverage is not appropriate decision for me.

Hilry Canes
02-21-2016, 05:43 PM
Overtrading has to be the biggest curse for newbies, if we don’t overcome this then we are exposing our self to massive risk and that can definitely lead us to lose, so that is why we must make sure that we don’t do over-trading in order to succeed. I don’t need to do over-trading because I have got high quality broker like OctaFX, they have helped me big time with their rebate program that gets me 50% back on all trading orders.

Annette Ashley
06-10-2016, 08:39 PM
Everything is good when it’s done in certain limit, but when we start overdoing it then we will find trouble, so it’s not just about over-trading but been greedy or impatient are equally harmful for anyone. I am grateful to OctaFX broker for helping me learn about these things through their lovely educational setup which is very simple yet highly effective to learn from and they also have amazing setup on their web site from which I can monitor all traders and that helps me trading easily.

Women Spin
06-13-2016, 08:31 AM
Over trade is always harmful for the every trader. Any trader who must make good money from forex must never over trade. Over trading is one bad behaviour which have made so many traders to loose their money in forex.

Annette Ashley
06-21-2016, 09:39 PM
Forex is a sort of business where we never need to go into over the top mode, we can make great profits just staying in simple way and that’s why this business is so popular. I always go with long term trading to avoid risk and with good money management, it’s a picture perfect way and thanks to OctaFX broker, I am using swap free account, so I am not required to pay overnight charges either, it just makes me so much comfortable.

Women Spin
06-24-2016, 08:08 AM
The market is constantly on the move, creating new opportunities for those traders prepared to take advantage of them. If you are able for this, you will be good trader.

Martin Kent
08-22-2016, 11:46 PM
Anything that’s done above a limit is always going to be dangerous for us, if we learn to figure out that line then we will definitely be able to perform better, but till we don’t understand the difference between the line then we will always have struggle and difficulty with managing things, I am trading with OctaFX broker where I get excellent support through their educational setup plus having demo contest as well, so all very cool for me and allows me to work nicely.