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Whats your definition of overtrading?
- Thread starter ER9
- Start date
Well, perhaps my opening statement was too vague. Obviously Lescor and Gnome have a valid argument as well. I was going to preface my comments with a caveat similar to what Lescor stated.
I think it is fair to say that one must evaluate overtrading on a case by case basis. A high frequency strategy is entirely different than a more traditional system with fewer trades and larger winners to losers per se. Therefore, the author should provide more information with regards to his/her strategy for others to work from.
I think it is fair to say that one must evaluate overtrading on a case by case basis. A high frequency strategy is entirely different than a more traditional system with fewer trades and larger winners to losers per se. Therefore, the author should provide more information with regards to his/her strategy for others to work from.
afternoon day trading can kill you
yes your right some people trade the afternoon like the morning or trade a choppy day like a trending day
lescor wrote:
It's none of those things. Some strategies are meant to have high capital turnover and to trade very frequently. High frequency trading will result in a large % of profits going to commissions, but that may be by design.
Overtrading is trading just for the sake of trading, not when you have a set up that meets your plan. If you don't have a clear setup, but you enter because you think it still looks ok, or you are bored, you have overtraded, even if that was your only trade of the day.
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Good post
It's none of those things. Some strategies are meant to have high capital turnover and to trade very frequently. High frequency trading will result in a large % of profits going to commissions, but that may be by design.
Overtrading is trading just for the sake of trading, not when you have a set up that meets your plan. If you don't have a clear setup, but you enter because you think it still looks ok, or you are bored, you have overtraded, even if that was your only trade of the day.
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Good post
Quote from ER9:
lol....I hate those "phantom trades" I swear my setup was there when i traded it but when i go back to look for it after hours because it ate me alive i can never find it.
Nice!
I get phantom fills sometimes, no kidding. My account balance shows me at a loss, but the PnL shows me at a win. So, exit, reboot, cross fingers, and . . . damn, another loss!
Quote from jackbyrd:
Well, perhaps my opening statement was too vague. Obviously Lescor and Gnome have a valid argument as well. I was going to preface my comments with a caveat similar to what Lescor stated.
I think it is fair to say that one must evaluate overtrading on a case by case basis. A high frequency strategy is entirely different than a more traditional system with fewer trades and larger winners to losers per se. Therefore, the author should provide more information with regards to his/her strategy for others to work from.
Appreciate your response. I wasn't worried so much about my own situation as much as i was in understanding what overtrading really means.
I really havn't given it much though until recentlly and this thread has given me a much better understanding of the different angles everyone sees it from and to be aware of. Wasn't expecting that.