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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Legendary Market Wizard
Dallas, TX
Trading Experience: Intermediate
Platform: NT, TS
Broker/Data: IB, Oanda
Favorite Futures: ES, MES, MNQ, MYM
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Silver Dragon View Post

As I mentioned in my previous post, I am new to long term trading. coming up on a month on actual trading. My answers are based on what I know today. I will defer to @wldman for expert opinions.

I like to learn with real money. I decided to go with micro futures because of the number of instruments available. Currently I have 28 pairs in my trading universe.

Do you trade single or multiple instruments? Multiple . Most open positions I have had to this point is 7 different pairs.

Single or multiple setups? Multiple. Trend breaks, breakouts.

Are you all in or do you scale into and out of trades? At this point, all in.

How do you manage your risk? Right now my risk is limited, because I am trading micro forex. However, as I scale up I will be risking 1% of capital on any one trade.

Do you trade futures and options? Forex. Looking to add micro futures in the coming months. Looking at options as well.

How do you balance the technical vs sentiment conflict? i.e. are you more discretion or more mechanical? I am a discretionary trader. I look at price movement then factor in RSI movement to determine bull/bear trend. I look for reversals in the direction of the trend. I will take a counter trend trade if the setup is good.

Hope this helps.

Best of luck Robert. I look forward to seeing your trades this week.


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