What's the best method to keep yourself from overtrading?

1/ Try to pick only the best trades. when you trade, emotions are at stake, So if you are not rigouros when selecting a trade you will end up in the "over trading trap" very quickly. I recall at the beginning that I always overtraded in the worst day possible : Range days and that usually the most profitable days are days when I made very few trades...

2/ This is a very serious business and you should consider it very seriously... Never be too cool on the markets. Money is at stake and if you don't use all your skills and reflexes on the markets you will end up losing a lot.. I recall when I first strated trading for myself. I started being very lazy, too cool and not even preparing the trading day. It cost me a lot. Before, working for a company, I was much more focused because I knew that I had to justify my trades and my performance. Working for myself I did not have this obligation and it cost me a lot.. This is when I realized that I was not trading to kill time nor to give money to other traders but to take money from them...

I think that one should experience losing money to stop overtrading and then work hard to develop and improve his trading method and last but not least always be very humble....
If you are over confident and if you are not scared you will end up losing a lot very quickly and overtrading will not be an issue anymore :)
 
This is the key..
Of course you have many opportunities on the markets and one of the key aspects of trading is to filter those opportunities and choose just the best..
 
"other"

I have multiple systems with a positive expectancy.

If they don't have a positive expectancy during a certain period I don't trade.

Seeing my P&L get effected was enough to see that. Different systems work in different conditions

Robert
 
Just following a good money management method (and there are many available out there) takes care of that, imo. Unless someone is financially suicidal, in which case they should be guarding themselves from trading, not overtrading.
 
i overtrade when i am in a trade i have no business being in.
i overtrade when i can't honestly justify the reasons for taking a trade.
i overtrade when i engage in "revenge trading", when i trade for the sake of action....

i keep myself from overtrading by being disciplined.

i become more disciplined when i realize that the lack of discipline hurts my best interest.

it all boils down to how seriously i want to be successful.
 
Quicktrade and Nitro quote.


Watch the trend,that is the trend in your equity account. Written trading plan helps also.

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''Granny smith apple''- Dr. Van Tharp quote:cool: [Won't help overtrading, but a good quote anyway.:cool:
 
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