Forex Traders Should Avoid Excessive Trading
Hello everyone. I have a confession, I am recovering over trader. In the past I was prone to make too many trades per day . I would get bored so I would try out different trading ideas
This is the song of many who have and willing continue to lose money trading Forex.
Over trading is one of the biggest issues that new and some experienced traders have.
Unfortunately, the more many people trade, the more money they lose. Do you like losing money? I doubt that you do. This article will explain why you should stop trading so much. This is your intervention. We care
The more decisions a trader completes, the more mistakes he will make. This is a simple truth that you must understand. When it comes to trading, you want to make as few decisions as possible.
You want your trading system to have already decided why you enter and exit a trade. More importantly, you want your money management system to allocate how much money you risk on each trade. These are the types of choices you do not want to make on the fly.
You fail and the Forex bullies will have all your money.
Stop giving away your money to the Forex whales
Why do we over trade? I know that for me, I love the excitement of trading. I like trying to take money from the market and I love to tinker with different trading concepts.
The problem is that I shouldn’t be making any trades that do not fall within the confines of my trading system. To be a good trader is to be disciplined and to stick to your strategy. Initially, I lacked the discipline to do this but after blowing up several Forex accounts, I am disciplined . This time around my trading plan is a thoughtfully constructed algorithm that discourages trading.
Please learn by mistakes and don’t lose all your money like I did.
There is away to tinker!
Yes, we are over traders and we promise to stick to our system. We also need a place to test new systems and strategies. My suggestion is to create a separate demo account with a amount consistent with your capital account that you use to test out your new ideas.
These demos allow to maintain trading size and leverage in this account because it is more to test ideas than to make income.
In this account I try my more riskier methods and I quench my thirst to trade and my need for speed. I suggest that you setup a similar account.or accounts
As you can see, over trading is a disease that many traders have. I am a sufferer but I am getting better rapidly.
We should aim to trade more so that we can stick to high probability trades and not waste away our account gambling and experimenting.
I do understand that there has to be away to test out new ideas and because of this I recommend demo accounts that you use for research and riskier forms of trading. This gives you the best of both worlds.
