Overtrading: Beware! It’s a killer!
Hard work always pays.
But not in the case of forex trading.
You have to adapt smart work instead of hard work.
Don’t you make profits even after months of hard work?
Then, probably you may be over-trading.
Responding the temptations is in the nerves of human beings.
Watching price actions and fluctuations always tempt you.
And nobody wants to miss the chances of making profits.
Generally, you earn more by increasing your effort.
With more activities, you can expect more in return.
But, it is not so in the case of forex trading.
How do you know you are overtrading?
Do you make losses in spite of your hard work?
Then, you would be overtrading.
Do you follow your strategy and enter the trade as it directs?
In the forex market, good trading opportunities don’t come often.
Do you trade every day and look for profits?
Probably, you are certainly overtrading.
You can also check your statistical analysis.
Also, check the mathematical strategy you chose.
Backtest it with historical data and check the reliability.
The market doesn’t always give you good opportunities.
80% of profit comes only from 20% of opportunities.
And good traders know it well.
They choose their trades wisely.
So, what is the easiest way to make profits?
By not being in the trade for most of the time!
Then, if you rely on your gut feeling, you are prone to overtrading.
Because people see what they want to see.
How to stop overtrading?
Successful traders know when to stand aside and do nothing.
You should know that you can’t force the market in any way.
But, be always ready to exploit the opportunities that come your way.
Don’t bypass your trading strategy and don’t enter the trades casually.
Be confident in your methods, and stick to them.
Backtest your method and make sure that it is a successful one.
Don’t curse the days when you don’t make profits.
Have patience and go for the right opportunities.