Over-trading versus Fear of Loss

[SimpleMeLike]

If you are trading a system, in my opinion I feel like you should follow the system to a T but keep a profit target in mind. It also depends on how much capital you are working with. You have to be realistic about your profit and losses when it comes to account size. How much are you willing to risk and what is your average profit following the system's every trade. I would make my profit target around the average of how much the trading system usually makes.

Thank you Guzman Katherine,

Since I initially posted, i still struggle with this a bit since I past posted.

For now, risk vs reward of 1:1 per trade and Not take every system trade as my account is still small ($4000 to $5000). I tried taking every trade the system offered and felt I was trading too much, but still good results.

I really don't have an answer for my problem. Overall taking every trade should results in good roi over time, but manually doing it everyday for 8 hours starring at screen is a bit tiring. It's something I have to get use to. Because my account is a bit small, i am focusing on getting right setups early as possible and making money to build account.

I know i have a $1000 loss limit per day I will not go under. I will take it day for day. Some days I take every trade, some days I dont.

 

[Mtrader]

when they have losses , they can't accept them...

Wrong, a professional trader can accept losses as they are part of trading and following the rules. Nobody has 100% winning rates, so they know from start that there will be losses too.

...then they try to get their money back...

Wrong, a professional trader follows the rules and continues to trade according to them, no matter what the outcome of the trade is. The system will take care of recovering losses.

...THEY INCREASE SIZE like gambler on martingale , then they fear losses...

Wrong, a professional trader will take position in such a way that he can take the same size after a losing trading. In this way he will recover at the same ratio as he lost. Example:50% losses will be covered by 50% profits because of identical size of trading position.

SIMPLE PSYCHOLOGY

Your answers are "simple", but in reference to intelligence. It looks that for you the only edge in trading is "SIMPLE PSYCHOLOGY". Reality is that you have PSYCHOLOGICAL problems. Get help.
The problems you describe exist, but only for unexperienced traders like you. Don't project your problems (mental and other) on other people.

 

[volente_00]

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

I agree

 

[Bobby Jay]

Losses, as we know, are inevitable. So the best thing for a trader to do is to prevent unmanageable trading situations and placing themselves in these disadvantageous scenarios.

 

[Bobby Jay]

When you over trade, you tend to generate lots of transaction fees. Many brokers charge you every time you buy or sell which can add up extremely quickly if you’re buying and selling too often. Those transaction fees drain your profits quite quickly.