Recently I have been finding myself over trading, where as before I was trading well... ' waiting for levels, breakouts etc...' I am now finding myself trading for the sake of trading, the market (FTSE) may be in no mans land and going sideways, however I still insist on trading and consequently doing my ****, and being stopped out for the day. Which means I can't even trade when I see great set ups (yesterday for example) I know I am doing it but still seem to jump in the market at any given opportunity with fear of missing a profit.
I was wondering if anyone else had had this problem and if so, how you overcame it? I know there are alot of very good traders on this website and It would be great to get your advice and maybe even help on this matter.
Thanks
Pelzar!!
Pelzar,
I've suffered from this a lot before and wether due to trying too hard to repair a damaged account, overconfidence, or whatever it usualy comes down to me trying too hard to make too much money.
Try to take the more passive attitude of taking money that the market makes available, rather than actively going into the market to get money out.
Understand that on a particular day there may be hundreds of good opportunities and you make a killing, while on another there may be none and you don't make a trade. This doesn't by any means mean you were a better trader on the first day than the second just that the market was riper on the first. Sit back, relax, take the money the market offers you when it makes it available, and then at the end of the day judge yourself not by your p/l but by how well you know you traded.
This becomes easier when you bear in mind that if you take only £50 out of the market everyday, but do it everyday without too many roundtrips then you are doing far better than the vast majority of traders.
P.s. The other main cause of overtrading is boredom/thrillseeking. If you think this may be your problem then every time you find yourself doing it remind yourself why you are really trading and how harmful this is. If you can't do this and thrillseeking is more important to you than a career as a trader then trading may not be for you.
P.p.s While overtrading is a bad thing, being too passive, especialy when starting out, can stop you from learning as much and developing as fast in my opinion. You notice things more when getting involved and trying things out and learning from your mistakes so try to find a good balance between the two.