Monday, March 5, 2012

Why are you making that trade?

Over-trading


Over-trading can be just as dangerous as averaging losers and trading too big.
Do you find yourself making trades to compensate for the losing trade you just had?
Can you reflect on the feeling and emotion that is causing you to make that trade?
These are self awareness questions that every trader must ask themselves before taking on new position and entering new trades after just having a losing trade. Also, this can apply conversely to the trader who just had a winning trade. Erase emotion from your trading and do not trade beyond your comfort zone.

1 comment:

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