WHY ARE YOU OVER TRADING ?

Overtrading is one of the most common pitfalls that many go under, myself included I am no better , i have been here especially at the start of my trading and intermediate journey.

The idea of making fast money is so appealing, but fast money often leads to fast losses..after making a loss I would enter another trade to try to recover but then that trade would end in a loss again..DAMN, I KNOW... that revenge trading kills.

After winning some few trades, I will feel so overly confident and believe that I will win consistently and end up taking trades with bigger amount of LOTS..and guess what ? another loss but this time around even a bigger loss. You end up thinking the market hates you and doesn't like you to see you winning consistently... but in reality, YOU ARE THE PROBLEM ..
Are you looking at that chart 24/7 and you don't see any activity happening?? go catch a drink, go be with your family or play sport. Sometimes when you are bored you end up being reckless and end up not following your plan this leads to some poor quality trades and losses.. DONT BE LIKE THAT go have a life outside of the charts....

SO WHY YOU SHOULD STOP OVERTRADING??

1. Emotional Stress: The constant highs and lows associated with overtrading can take a toll on your mental state. When trading frequently, emotional decisions may become more common, especially after a loss, which can lead to poor judgment and irrational actions.

2. Increased Transaction Costs: More trades mean more transaction fees, which can erode profits over time. Even if each trade has a low fee, they add up quickly and can eat into gains or increase losses.

3. Higher Exposure to Risk: Overtrading often involves taking on more risk than intended or necessary. This higher exposure can lead to larger losses, which could potentially deplete trading capital faster.

4. Reduced Quality of Trades: With overtrading, traders often lower their criteria for entry, leading to trades with lower probabilities of success. This dilutes the overall quality of trades and increases the chances of losses.

5. Account Depletion and Burnout: Over time, the constant focus and rapid pace of overtrading can lead to burnout, both mentally and financially. This can lead to reckless decisions that can potentially wipe out an account.

6. Neglecting the Trading Strategy: Overtrading often deviates from a well-thought-out trading plan or strategy, as it tends to be reactionary rather than calculated. It can prevent traders from focusing on setups with higher probabilities of success and sticking to their strategies.

7. Psychological Effects of Losses: The compounding effect of multiple small losses can have a profound psychological impact, potentially leading to a cycle of revenge trading where traders try to recover losses quickly, often resulting in even larger losses.


YOU ARE WELCOME!!!