Overtrading, forcing trades
- Thread starter turkeyneck
- Start date
Stuff that, BE GREEDY!!!! When your right you need to maximize it. When your getting out in the middle you should actually be holding or even looking to add.
Remember the following saying...
"amateurs go broke taking huge losses.... however professionals go broke taking small profits!!"
So when your right I say BE GREEDY!
In relation to the OP's originally question. Take a break (even just for a few mins), reduce your size until your trades start working out. Delay your trades to make sure there is actually a move. Focus on patience.... both in getting into a trade and also in allowing it to work for you... patience patience patience
What do you mean by overtrading or forcing trades? Were you trading in the direction of the trend or against it, or were you trading in a narrow range and trying to pick a direction on your own?
Laissez Faire mentioned: "...setting up dead zones, which is an area in which I do not initiate any trades as I see it as noise."
I do the same thing. I have a 20-bar moving average on the chart and when it's flat as a result of price ranging around it, I wait patiently for an entry signal such as a break out of the range, or an internal double top/double bottom at lower high/higher low.
Do exactly that, SLOW it down. Be Patient.
Avoid the first 30-45 minutes. Don't touch anything that makes you feel uneasy. Don't touch anything that has a risk beyond your risk tolerance. Ensure your risk and reward targets are realistic.
You should have multiple reasons for getting in a trade, the sum of which produce a high probability trade. You should be familiar with the type of trade you are entering.
Don't get caught in the market's emotion. You will force yourself into trades, or limp in to crappy setups if the market sweeps you off your feet.
Treat each trade like a hypothesis. Know why you are entering, and how it can be proven wrong. The market will present and help you build a case, it is your job to understand the factors that strengthen your hypothesis or weaken in.
If mediocre crap works, who cares. The stock market is FULL of opportunity. If you miss a move, more will present. The longer you wait, the more information you have.
More often than not, the better trade is to not trade.
Avoid the first 30-45 minutes. Don't touch anything that makes you feel uneasy. Don't touch anything that has a risk beyond your risk tolerance. Ensure your risk and reward targets are realistic.
You should have multiple reasons for getting in a trade, the sum of which produce a high probability trade. You should be familiar with the type of trade you are entering.
Don't get caught in the market's emotion. You will force yourself into trades, or limp in to crappy setups if the market sweeps you off your feet.
Treat each trade like a hypothesis. Know why you are entering, and how it can be proven wrong. The market will present and help you build a case, it is your job to understand the factors that strengthen your hypothesis or weaken in.
If mediocre crap works, who cares. The stock market is FULL of opportunity. If you miss a move, more will present. The longer you wait, the more information you have.
More often than not, the better trade is to not trade.
Separate the type of trades are profitable for you from those that are either break even or losers (as a class) and then do a further cut where you separate the marginally profitable from the solidly profitable. Assume the marginally profitable are the most dangerous trades -- they are -- and that the reason for that is that they are probably within the margin for error and will head south soon.
Work exclusively with the types of trades that are solidly profitable even if it bore you to tears. Once you see that the math is strong enough increase your size. Review again in a a few weeks. If your numbers are holding up increase the size a bit more. Keep growing capital and increasing size.
I'm not advocating crazy leverage or pyramiding but better to be trading up in size (within reason) than trading down in trade selection.
Work exclusively with the types of trades that are solidly profitable even if it bore you to tears. Once you see that the math is strong enough increase your size. Review again in a a few weeks. If your numbers are holding up increase the size a bit more. Keep growing capital and increasing size.
I'm not advocating crazy leverage or pyramiding but better to be trading up in size (within reason) than trading down in trade selection.
Solution is simple
Within your mouse are a couple of micro switches...
Splice into one the switches (one on the left side of the mouse most likely if you're right handed) and splice it to both terminals of a relay⦠(the control side)
Take an extension cord, break one of the wires, then splice it into the load side of the relay
Connect the two exposed wires from the extension cord to your cahones,
Plug the other end of the extension cord into an outlet......
Guaranteed your over trading problems are overâ¦.
You will not be hitting the entry/ exit mouse button any more than is absolutely necessary
================================================================================================
On a serious note;
Bottom line â you do not have the following
A plan
Discipline
Set up(s)
Humility
Understanding of trading, or being a trader
Appreciation for risk
A clue
Cure the above â youâll trade systematically - don't - you won't
Not being a dick â simply calling it like I see itâ¦â¦
RN
Within your mouse are a couple of micro switches...
Splice into one the switches (one on the left side of the mouse most likely if you're right handed) and splice it to both terminals of a relay⦠(the control side)
Take an extension cord, break one of the wires, then splice it into the load side of the relay
Connect the two exposed wires from the extension cord to your cahones,
Plug the other end of the extension cord into an outlet......
Guaranteed your over trading problems are overâ¦.
You will not be hitting the entry/ exit mouse button any more than is absolutely necessary
================================================================================================
On a serious note;
Bottom line â you do not have the following
A plan
Discipline
Set up(s)
Humility
Understanding of trading, or being a trader
Appreciation for risk
A clue
Cure the above â youâll trade systematically - don't - you won't
Not being a dick â simply calling it like I see itâ¦â¦
RN
btw, thanks for the $.. I really don't think that very many traders are this side of random. All the stuff bundled with charts is random afaik.
I never tried taking a losing strategy and just betting the opposite way though...
Check this out.. change the setting so it generates one hundred equity curves.. leave the other settings alone, it defaults at random [sans trading costs].. you will see a few equity curves that are really great and an equal number that are really awful.. and they are all really just random.. so you could make up a random system give it to 100 people and a few would be raving about it...
http://www.hquotes.com/tradehard/simulator.html