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?

  #23 (permalink)

Flagstaff, AZ USA!
Trading Experience: Beginner
Platform: WealthLab Pro
Favorite Futures: Stockes/ETFs
Posts: 1 since Apr 2012
Thanks: 9 given, 0 received

1) Trade only the morning session. Spend the rest of the day reviewing your trades and the market action.

2) "I've had a couple of frustrating weeks resulting in a big drawdowns in my account." This clearly indicates that you are trading too large or your account is too small. Trade 1 contract ONLY, until you are profitable. If only a few weeks of poor performance while trading one contract can result in "big drawdowns", stop trading, save up more money, and come back later.

3) You do not have an edge, so you are going to continue to lose money until you develop one. This means you should follow Steps 1 and 2 like a religious ceremony: Trade only the morning session every day, and review your trades for the rest of the day; trade very, very small.

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