What do you do to stop overtrading / manage trades? | Psychology and Money Management

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What do you do to stop overtrading / manage trades?

  #14 (permalink)

Seattle WA
Trading Experience: Beginner
Platform: IB TWS, MC.NET, CQG
Broker/Data: InteractiveBrokers, Optimus/AMP
Favorite Futures: NQ
Posts: 125 since Jun 2017
Thanks: 23 given, 198 received

Things that have worked for me, a series of rules that somewhat built on top of each other, just in case..

1) Plan to only make ~3-4 trades a day. Ask yourself, is this one of the best setups. Keeps me from trading in tight channels when a case of FOMO kicks in. Sure, I miss some trades this way...

2) Not allowed to take any more trades if P&L is negative a specific amount.

3) Set profit and stop orders with entry, walk away for at least 30 minutes, but dammit I try to make it an hour. Canít trade if youíre not sitting at the screen, and if youíre only looking every hour, then you canít trade too much in the run of a day.

4) If Iíve exited 2 trades at market, cancelling the profit or stop, then close the platform for at least an hour. Iím not in the right mind frame for the day, and unwilling to accept the risk.

Of course, like everyone else, I donít always follow my own rules and typically regret it...

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