When I first started trading I felt I had to be in a trade or I was going to miss out on a move and as result I found myself over exposed to the markets even though I was managing my risk on each trade properly.
I soon began to realise that over trading can kill your account quite rapidly.
I now plan all my trades down to the last detail and only take those which appear to have a higher probability of succeeding. Sure I still have losing trades but the profits from my winning trades by far offset those losses, which are inevitable.
So following on from my previous Blog about trying to have the Patience of a Saint and the Discipline of a Soldier when trading the markets, if we apply those ideas to our trading and stick rigorously to our Trading Plan, Trade Plan, Strategy and Risk & Money Management we should be able to stop ourselves from Over Trading. After all we need to preserve our trading Capital to take best advantage of those moments in the market when we have total clarity of the likely direction and are thus in for the kill at the right moment.
These events tend to take place when we get what I and Sunil call confluences taking place, where everything seems to come together at one point in time across several timeframes, but more on that topic in a future blog article.
So even if you only take one good really good well planned trade a week it will most likely pay well and you will minimise your losing trades and on balance will see your account grow faster.
Top Trading Tip: Try not to take impulsive, unplanned trades and don’t Over Trade and kill your account, pick and plan your trades carefully, as Less really can mean More.
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