Over-trading versus Fear of Loss

[SimpleMeLike]

Hello,

I need some help or advice.

I have a system that I have been trading with decent (slightly over break-even) profits.

My system have the ability to have more wins vs losses if I take all the setups.

Here is my problem I notice lately: Once I make about $300-$400 on the first 1-2 setups, I stop trading. However, the system producing 2-3 more setups during the day that gives good setups. I do not take them cause in my mind I think I am over trading and I fear losing the money I already made.

Those trades turn out to be winners and I could have made $500-$800.

The next day or so, I take a loss and all the money made from yesterday is loss.

I believe I should be taking all the setups and stop worrying about losing or overtrading.

Please share your experience or advice please for me.

Thanks

 

[CyJackX]

If the charts were an endless stream of data and you had no concept of time, there's nothing saying you shouldn't take a good setup. There's nothing saying you have to categorize "today"s trades as a category. There's nothing saying the last trade should have anything to do with the next. If your system works, follow it.

 

[Scataphagos]

If the charts were an endless stream of data and you had no concept of time, there's nothing saying you shouldn't take a good setup. There's nothing saying you have to categorize "today"s trades as a category. There's nothing saying the last trade should have anything to do with the next. If your system works, follow it.

Ditto.

Disagree about the notion of "overtrading".

You either trade well or poorly.... frequency isn't a determinant of success.

 

[Chuck Krug]

Read: 'The disciplined Trader' By Mark Douglas.
It tackles what you described.

 

[java]

Hello,

I need some help or advice.

I have a system that I have been trading with decent (slightly over break-even) profits.

My system have the ability to have more wins vs losses if I take all the setups.

Here is my problem I notice lately: Once I make about $300-$400 on the first 1-2 setups, I stop trading. However, the system producing 2-3 more setups during the day that gives good setups. I do not take them cause in my mind I think I am over trading and I fear losing the money I already made.

Those trades turn out to be winners and I could have made $500-$800.

The next day or so, I take a loss and all the money made from yesterday is loss.

I believe I should be taking all the setups and stop worrying about losing or overtrading.

Please share your experience or advice please for me.

Thanks

If you lose 2 or 3 hundred on the first 2 trades do you keep trading?

 

[SimpleMeLike]

If you lose 2 or 3 hundred on the first 2 trades do you keep trading?

My daily limit loss limit is $450. If I hit that limit, I stop trading.

 

[qxr1011]

slightly over break-even) profits.

but u do no believe that its good enough for you... you want to improve it, and knowing that after the series of wins will probably follow the series of loses u refuse to trade further

effectively u do not believe in your method...

happens

what to do? stop trading, continue to improve you method until u want to trade it again,..... trade it again, until u find again that u do not want to take all the trades... stop again... and like that: iteraton after iteration

u have to understand once and for all: if trader does n0t take his methods trades (all of them) that is clear indication that he does not believe in the method at hand

 

[qxr1011]

My daily limit loss limit is $450. If I hit that limit, I stop trading.

u should stop trading at all with the real money until u ill have a method in which u will believe

probably the earliest in a few years, most probably never...

 

[java]

My daily limit loss limit is $450. If I hit that limit, I stop trading.

No prob, if you have a feel for what a day can usually produce and you hit it I see no reason to keep taking risks. I have a rule, when I get flat, no more trading until everything shows zero, and all trades have successfully been imported to tradelog (usually after midnight.) I run the exact same system in my paper account and it never gets flat so I can switch over and watch it and see what would have happened. Why let psycho take it's toll if you are above water?
Gamblers law:Quit while you are ahead. Anything else is just trading.

 

[speedo]

If your system has a positive expectancy, you should take all defined signals. No one knows whether the next series of signals will result in wins, losses or any combination.