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?

  #43 (permalink)

Miami, USA
 
 
Posts: 11 since May 2017
Thanks: 1 given, 8 received

What a great thread

Hey everyone,

I'm a quant, trading currency markets. I've been lurking around on this forum for quite a while, but haven't been posting much.

I saw this thread and I wanted to share some thoughts:

I think "overtrading" and being trigger happy, itchy fingers, etc., is typically something that would come into effect when someone is focusing on the wrong things.

For me, trading was always about research. When I didn't have any profitable strategies, research was about finding mentors and people who could help me learn how to think about the markets.

Once I understood how to think about trading, and what profitable strategies looked like - trading was about backtesting, and doing all the research that way.

I'm personally trying to avoid "looking at charts", at least in terms of live charts. When I have a positive expectancy system, I put it live, and I leave it alone. I let it trade and look at the stats at the end of the week, when trading stops. Looking at it during the week is just to prevent emergencies. That's "trading" for me. There's no space for me to be trigger happy at all. It's all about finding new systems and rules.

Apart from a few geniuses of discretionary trading, I think "looking at the chart waiting for opportunities" is a mistake. You can invest your time into learning, researching, developing, etc., instead of watching how the markets move and trying to analyze them manually.

Just my 2 cents,

-Ben

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