overtrading

[eleanorK80]

You can try Renko charts, this is a method to avoid overtrading. You will see that you will make far less trades. Once you learned it you can switch back again to other chart types.

I didn't know about that. I did some quick research, and it sounds good to me. If you have any suggestions or advice about that, please mention it here. Thank you so much.

 

[eleanorK80]

Are you able to execute a trading method accurately? How do you know?

I am some how new to trading, you know every trade is different and you learn new things, I ask some friends to give me advice on my trades.

 

[eleanorK80]

Good Morning eleanorK80,

Over trading is not real. It is a marketing term developed by Trading Sellers who sell trading courses and trading books to provide an excuse for trader losses.

Over trading is a very good thing because :

1. You learn to trade
2. You learn what you do not know.
3. You learn how to win
4. You learn how to lose
5. You learn how to recover losses.

You can not learn this by not over trading.

Please continue trading and take however many trades as you want.

Disclaimer: These are just my trading opinions. Please do not take what I say as truth because I can not prove anything I say makes a lot of money trading. Please trade per your own responsibility. I have been day trading manually for 4 years and my total profits is about -$11,500 so I am not a profitable day trader, yet. For 2023, I am down -$4000. I am working on recovery day to day.

Hi, thanks for sharing your thoughts here. I was wondering to know how you learn these 5 elements by over trading coz I just lost money.

 

[eleanorK80]

Profits take care of themselves because you do not know in advance if your trades will result in big profits, small profits, big losses, small losses. There are only 4 possible outcomes to any stock trade you place. What you need to focus is in your trade process, to make sure you are following your trading plan and risk management rules. Trust the process, like they say. If you have a trading edge (positive expectation), you will make monies after a period of time. And if your trade starts going your way, you want to protect any profits you have already earned by raising and trailing your stop losses. The time to count profits is when you have closed your trades.

I greatly appreciate your time because you answered my question in great detail. I am aware that I require additional details about that. I should look around more.

 

[eleanorK80]

Great question… I have struggled with this myself. There are different schools of thought:

1. Leverage up. Moving for you? Double down!
2. Clearly define exit. My professor would say up 10%? Take your profits and move on.
3. [Harder] If you really want to do it right, do what the pros do. Read the reports and create your own pricing model in Excel. Then project and predict exactly how much your target will move. When the price equals your projection, sell out.

Good day, Kmiklas Thank you for visiting. It must be a big deal for every trader at the beginning of their trading career. I'm very happy I raised this topic here and got such wonderful responses. With regard to your number 1 mentioned here, there is just one thing I don't understand.

 

[eleanorK80]

I have a checklist of all conditions that must be met for me to enter a trade.
I have the discipline to not trade if all conditions are not met.

Interesting, hmmm. Do you mean I have to create a check list for my trades?
How do I go about making that?

 

[deaddog]

Interesting, hmmm. Do you mean I have to create a check list for my trades?
How do I go about making that?

The one thing I recommend each trader do is have a written plan.
For whatever reason you are more likely to follow a written plan than if you just have a plan in your head.
I call it an operators manual and it should answer the question "What do I do now?"
My checklist has all the criteria that must be met before I enter a trade. I shared some of them in post #54

 

[SimpleMeLike]

Hi, thanks for sharing your thoughts here. I was wondering to know how you learn these 5 elements by over trading coz I just lost money.

Hello eleanorK80,

Well I learned by trading everyday and taking losses and taking wins.

And everything you are saying, is what us trader go through.

I like @deaddog approach of having a plan in place on handle wins and losses and stay objective on track to trading. Because emotions, stupid trading, regret trading, fearful trading, I wanna give up trading WILL indeed come. You can not run from anything you are feeling.

All you can do is embrace it and plan for it and battle it, a plan helps reduce this things, so you remain in control.

 

[kmiklas]

Good day, Kmiklas Thank you for visiting. It must be a big deal for every trader at the beginning of their trading career. I'm very happy I raised this topic here and got such wonderful responses. With regard to your number 1 mentioned here, there is just one thing I don't understand.

Example: you buy AAPL, and it goes up 1%. You buy _more_.

https://ia903009.us.archive.org/4/items/JesseLivermoreReminiscencesOfAStockOperator/Jesse Livermore Reminiscences Of A Stock Operator.pdf

 

[eleanorK80]

The one thing I recommend each trader do is have a written plan.
For whatever reason you are more likely to follow a written plan than if you just have a plan in your head.
I call it an operators manual and it should answer the question "What do I do now?"
My checklist has all the criteria that must be met before I enter a trade. I shared some of them in post #54

I consider myself to be a writer of all things.particularly significant things, such as trdaing. I set aside a notepad solely for recording trading information.