Hello everyone. I have a confession, I am an over trader. I often make too many trades per day and when I get bored I like to 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 have to stop trading so much. This is your intervention.
The more decisions a trader has to make, 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 bullies!
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 discipline.
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 account with a small amount of money that you use to test out your new ideas. I always keep my trading size and leverage low 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.
As you can see, over trading is a disease that many traders have. I am a sufferer but I am slowly getting better. 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 a smaller account that you use for research and riskier forms of trading. This gives you the best of both worlds.