What do you do to stop overtrading / manage trades?
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What do you do to stop overtrading / manage trades?

Psychology and Money Management

Created June 20th, 2019 by muis2
Updated today by kareem40
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What do you do to stop overtrading / manage trades?

  #31 (permalink)
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gmt123 View Post
To avoid over trading you must write down entry rules and exit rules. The next step is simply to stick to them. If you have the feeling that you may break an entry rule I suggest that you turn off the computer.

It is hard to disagree with you @gmt123. When you are over trading is most likely that your current market conditions are not met. You are getting in and out but have no patients to wait for trade to move in your direction. You either seat and wait for momentum to pick or just shut it off. This is what i usually do. There is always tomorrow. Market was before us and will be there long after

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  #32 (permalink)
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The way I avoid overtrading is setting limits.

I only trade one instrument.
I only trade US session.
I only trade when price gets to a specific level.
I only trade based on a one specific time frame.

The more you limit yourself with very specific rules the less you will be able to overtrade (if you follow your rules strictly, then its impossible to over trade).

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  #33 (permalink)
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You need to slow down. Take a break. Take some trading psychology programs.
Go back to SIM. Can you do it in SIM the same as you would like to do in each and every trade?
If not, it's better not trade with real money.


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  #34 (permalink)
ancona+ marche italy
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Forgive my english but it's not my motherlanguage it' going to sound strange ad filled with errors, I apologize about that.

Im my opinion the first thing you need to do is assess if your strategy is a winning one, meanig is it statistically sound. In a
paper trading lasted at least 3 months are you profitable? If not you need either to change it or to invest money in finding someone that can coach you, on eon one, on a profitable method that you can follow to the T. When you have not been a successfulll
trader for a long time, you NEED to have a repetitive method that you can have confidence with. In my esperience a TOL home trader at least in the beginning of is never ending learning curve, needs a lot of structure and repetitive almost boring methodology to follow, if not you'll always blow out you account and in the end never be profitable. But how can you be so disciplined. First you need to know how serious are you about this. Even if you have another job and this is a side activity, you have to treat it like a job even if it's whithouth a boss. Then you need to understand that money is a very powefull symbol that will dominate you, if you do not learn how to dominate yourself. If you do not have a strict discipline, you'll end up moving your stop loss all the time, when do you take profit, who knows, if it does retrace do I get what I can
or I keep going and risk it more. As you have lived trought this, I'm sure you can reconize that greed and fear will overwhelm you, simply because MONEY is a very powerfull symbol in your psyche as is for everyone. You can be making profit for 3 months in a row, feeling like a king and then boom, one bad day you'll wipe everything out. So if you do not learn how to control your emotional side, you'll wipe out, in the short/long run doens't matter, your account. The argument is vast, but I'll summarize it in:

-Find somedoy or by yourself a sound winning strategy. If you have somebody coach you, one on one let him show you his montlhy account and the successful trades he is able to do consistently. If it does not do that forget about it. Many will say It's my thing, it's private. Bullshit, if yor coach somebody who is paying you money you need to demonstate that you are able to do what you teach yourself otherwise...(p.s. it took me 2 years to find a good mentor, but I finally did).

-a repetitive and constant string of small gains goes a long way to build your account up.If you hope to build it whith great fat trades, good luck never met anybody having succes this way.

-at the beginning trade a very small amount of money, for each trade, if you do not want to paper trade, so you can apply easily you strategy without having to chage the SL or TP all the times, it's a way to learn subconsciously almost automatically that what you do is successfull. Do not be overconfident and just because you make 50 good trades you say now I can make money. Be patient and only after 100's of succesfull trades, your subconscious mind, will accet this way of trading without intervening when you trade with bigger summs at stacke and start to kick in to preserve you.
Meaning the secret is that you have to make your emotional mind quiet and let your everyday logical mind take over and be there when you do what you need to do,make it automatic, you set the trade and forget it, if it hits SL, move to the next trade and so on. If you have a winning strategy which for me means you are profitable in the worst case scenario at least 70% of the time, sitck with it it's the only way to succeed in this business of algotrades and big players.A trick cold be trade with ticks and not in money. If you loose 300$ ona trade your mind will say damm 300$, I need to recover them immediatly and make you trade until either you lost 3 times that or have recovered it. As I said money is a powerfull symbol, you need to depotentiate it's emotional side.

- do not trade more thaqt 3 -4 hrs max a day after that you attention span diminishes and beside few exceptions you lucidity it's gone.

Trading is not for everyone and it's veeery difficult to parsue, don't yourself. Very few succed because the industry behind it needs cows to milk and puts around the fake news that it's easy and dandy. It's not and never will be, better be honest about yourself and what you want to do.I wish you the best

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  #35 (permalink)
Posts: 24 since Feb 2019
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1-Set a goal,$100,$200 a day... ? .And stop trading there .
2-Follow a strategy that provides low risk entries before you are proven wrong.
3-PATIENCE, wait for the mkt. to do what your strategy dictates.
4-Trust your strategy,even if it's not %100 right.
6- Journal.

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  #36 (permalink)
Posts: 1 since Jun 2019
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Remember the saying that looks like a mantra, "Overtrading is financial suicide."
That effectively cured my overtrading.

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  #37 (permalink)
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If I'm honest...

when I run out of money. God willing its a lesson that people will only have to learn once. EXPAND your time frame, trade less...always timely good advice.

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  #38 (permalink)
Orlando Florida
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muis2 View Post
I've had a couple of frustrating weeks resulting in a big drawdowns in my account.

I'm finding that I have spotted several good trades/trends over this period, but I get stopped out too early, then I chase overtrade and end up doing serious damage to my account.

What do you guys do to manage your emotions? How do you create a trading plan?

I have a serious tendency to focus on the markets and get an itchy trigger finger when the markets are open.


Whenever I talk with traders it inevitable becomes a conversation about how to deal with a bad situation. For me to get past the emotional hurdles of a bad trade was to become an expert on loosing trades. I put a lot of work into using a live demo account and even going back in history to put myself into bad trading scenarios. I knew that the more I could experience these bad encounters the better I would become at dealing with them, using more focused energy to plan contingencies and realized my confidence improved. Its like learning to jump over a six foot wide 1000 foot drop across to the other side knowing that one slip and you fall. But if you work out your legs over a 1 foot drop a 1000 times you build confidence knowing I can do this. What can go wrong. Fix your body and practice and the same thing with trading. You have to put enough effort into knowing all the right things and wrong things that can go wrong and how to fix. I don't believe there is a magic wand to do it. You have to work at it and then you will start to become an expert. For example, "Hey,,, I have seen this situation a thousand times,,, I know what to do." And your brain will become more structure, routine, and there's nothing more satisfying than looking at any situation and recognizing the possibilities. Either stop live trading or greatly reduce your exposure and get give yourself the opportunity to discover successful trading. I don't like to loose and I almost never do but it happens and guess what. Its no big deal because I know what to do. Sincerely,,, Dustydog

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  #39 (permalink)
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wldman View Post
when I run out of money. God willing its a lesson that people will only have to learn once. EXPAND your time frame, trade less...always timely good advice.

might have to run out several times though

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  #40 (permalink)
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This specifically...

has only happened once. My first off floor big deal was trying to automate a multi-strategy gray box. Truly my siren song, and the reason I first joined this forum.

My other forced reconciliation was the two weeks following 9/11...which could vaguely be argued as "not my fault".

Ive walked away for perseverance sake, but I've only gone to zero in the trading account twice.


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