How did you overcome overtrading?
I had to delete my mobile trading app from my phone, because i was always tempted to trade on my phone at odd hours. Now I just have my trading software installed on my laptop, that way I reduce the access I have to the market.
I had to delete my mobile trading app from my phone, because i was always tempted to trade on my phone at odd hours. Now I just have my trading software installed on my laptop, that way I reduce the access I have to the market.
🤣 nice one. Thanks for sharing
After I open a trade I don't check it for the next 30 minutes. It works for me because even if the trade ended in a loss, I will only find out after 30 minutes. I also trade for 1-hour only every day so that makes two trades a day. This helps me curb the urge to overtrade.
What i do to prevent over trading?
I built an application layer in front of my brokers MT4.
Why i did it?
From my own experience blowing up multiple accounts in boom and bust cycles and from reading about many great traders falling in a single day or hours, when they were not mentally sound, I have come to the conclusion that as trader it's best to have supervision and accountability over our actions.
What my solution allows me to do?
1. This app lets me set restrictions on the amount of risk i can take per day.
2. The trading hours.
3. Efficient position management, including fast breakeven and bulk closing multiple orders.
What i have achieved by this?
Having controlled engagement allows me to feel safe while trading, knowing that i will not destroy myself in a single trade or day. Since i can't break rules set by the application i cant over trade by breaking the rules.
It has allowed me to do behavioral modification, by instilling good trading habits
How you can do the same?
1. Have an accountability partner, someone that cares about your success and will act in your best interest when you are not acting sane and trying to overtrade. they will stop you or let you know that you are making a mistake.
2. Create a set of mechanical set of rules for entry and exit. Adhere to those rules as they will prevent you from engaging impulsively.
Example: If you were always trading based on 30 minute chart patterns you could only place 48 trades in 1 day.
3. Have a fixed limit for the loss. this will prevent you from over trading when you have blown away x amount of your capital. You could risk 2% a day of your trading account.
Remember the goal is to stop trading when you have done enough damage. When you do this you will stay in the game longer and be able to trade on days when the market does move in your favor and stop trading when you are having a bad day.
Hope this helps..
I used to have this problem in the beginning but one day i took time to perform an autopsy on all my past trades and the discovery was a game changer.
I discovered after trading for 2 hours, I started recording big losses and this was because my brain became fatigued & i began to get careless. It was a sign for me to reduce the number of time i spend looking at charts/trading. When i did that, my loses reduced drastically.
The brain is most active early in the mornings and I beleive that is the best time to trade when you still feel fresh.
I used to have this problem in the beginning but one day i took time to perform an autopsy on all my past trades and the discovery was a game changer.
I discovered after trading for 2 hours, I started recording big losses and this was because my brain became fatigued & i began to get careless. It was a sign for me to reduce the number of time i spend looking at charts/trading. When i did that, my loses reduced drastically.
The brain is most active early in the mornings and I beleive that is the best time to trade when you still feel fresh.
Whenever i feel the urge to overtrade, i simply withdraw all the funds from my trading account and go out for a drink 🤣. Better to spend the money on a drink than to waste it.