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?

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Silver Dragon View Post

I can actually speak from experience on this one. I recently switched from intra day trading to holding days to weeks. Other than the time frame, the differences are minimal. The chart patterns are the same, indicators behave slightly different and it moves at a snails pace. I actually finding this type of trading far more appealing. I make a lot more ticks per trade than I did day trading.

I will admit I thought about doing this for a long time. I just didnt wake up one day and say lets trade long term. Well, maybe I did.... but it took me about 6 months to pull the trigger. I looked into it and studied it and made mental preparations. After that the overall transition was easy. The biggest adjustment I had to make is to not check my holdings 200 times a day. I did that the first week or so. Now its just a few times a day.

I agree about wanting to make adjustments to the trade. My first couple of weeks I kept looking at the 5 minute chart. I would see a spike on the 5m and want to close the trade. Then I switched back to the daily and what seemed like a big move was hardly a move at all. I now use a 4 hour chart to view intra day movement.


I would really like to hear more @Silver Dragon.
Do you trade single or multiple instruments?
Single or multiple setups?
Are you all in or do you scale into and out of trades?
If you use scaling, do you scale with the trade, against it or both?
How do you manage your risk?
Do you trade futures and options?
How do you balance the technical vs sentiment conflict? i.e. are you more discretion or more mechanical?

I have more but Ill leave it at that for now. You obviously dont have to answer anything but the only other person subtly recommending longer timeframes is @wldman. You have been trading for a lot longer than most and thats why I think you (and any other longer term traders) have a lot to offer in terms of lessons learned and how you approach trading. I think its great that people help one another on specifics but answers also come just by listening to more experienced traders talking in general terms.

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