Ways to solve our overtrading issues
Hello, I have an overtrading problem.
There are solutions, they are just not on the internet on trading websites. They come up with the same useless nonsense you'd expect "take some time off the screen", "don't try to get rich quick", "defeat your overtrading", "get motivated get a plan and force yourself to stick to it", "be patient" 🤦♂️.
What is next? "Brush your teeth be a good boy and do your homework"? Or even better "do not overtrade". My brain doesn't care that "less is more" my brain is thirsty.
Really there is no such thing as "placing the threshold here". There is not such thing as "not (under/)overtrading". You always either overtrade or undertrade.
If we want to compare this to drawing a line, or in other words placing a barrier, it would be like placing a barrier but not 2 or 3D, there would be 20 dimensions, and all opaque, and ever changing, and you do not know which one is more important which one is less. Good luck learning by heart how to do it in a book.
Of the past 5 months 4 of those had nearly no good setups for me, it was very hard. I can't just do nothing. So I took really terrible setups. Way too many.
Ok let's skip the excuses. Even if I am not trying to go only for the ideal stuff at all, I've been taking way too much, I went through my logbook and I would say I took 2-3 times too many.
We want to compete, we want to play the game.
Most people, and most people this idea is targeted to, are at an intermediate level to advanced.
Beginners that do not even have an edge well overtrading is not really hurting them is it. They do not give back profits, there are no actual profits to give back!
A word for beginners. Since we're going to end up investing anyway aren't we? Well perhaps they might as well start with managing a simple low risk portfolio.
Build a solid base. Might as well start with the easiest part. Least difficult. And might help avoid overtrading from the start. If I could start over I would not hesitate.
Once an intermediate has his niche, a few currencies, his favorite websites & tools, and an edge, well that just won't do will it.
There is no resting on laurels until we really have plenty of knowledge, strategies, instruments we can handle.
Constantly look for more edges. And progressively widen the business with more currencies. Can also add commodities.
With time the base grows, like a strategy game. Might want to test the new strats on a separate low stakes accounts while running the core one on the real account.
A player with several edges, and a wide array of instruments, as well as a couple years experience, is what I'd call advanced.
At some point if we try adding even more instruments or strategies we'll just mess it up, it takes enough time to manage our vast business already.
And after several years the strategies sort of come without looking for them anyway. Plus the markets do not have infinity opportunities to offer.
Just keep doing research, improve your understanding of the market, keeping updated on everything...
A serious advanced trader will be busy, no worries here. The issue is there are not enough opportunities. We want to compete, we are eager to fight.
If nothing happens in the market, price is just random as far as we know (only retail day gamblers will say it's not and we know how well they perform), what to do?
Well there are some tricks:
- First use and abuse adding to winners. If you're going to overtrade anyway, might as well do it with a winner than some choppy garbage. Not ideal, use this in last resort. Adding to winners should probably have some rules to it. Better to have bigger winners than more losers.
- Go manage a portfolio on the side, invest a little / position trade. And when the urge to take a trade comes, find a good winning investment and add to it. I would not start dreaming of adding and adding and adding to Forex, but with stocks, sure. Buying an additional S&P call is like taking a new trade. Better this than gambling on 2019 EURUSD.
- If you have a severe addiction and just can't help it, well... I guess in last resort there is still the option of going day gamble on the side, but this should not take your attention from your main business. This can easily eat up time & focus, and mess up results without adding anything positive.
There are solutions, they are just not on the internet on trading websites. They come up with the same useless nonsense you'd expect "take some time off the screen", "don't try to get rich quick", "defeat your overtrading", "get motivated get a plan and force yourself to stick to it", "be patient" 🤦♂️.
What is next? "Brush your teeth be a good boy and do your homework"? Or even better "do not overtrade". My brain doesn't care that "less is more" my brain is thirsty.
Really there is no such thing as "placing the threshold here". There is not such thing as "not (under/)overtrading". You always either overtrade or undertrade.
If we want to compare this to drawing a line, or in other words placing a barrier, it would be like placing a barrier but not 2 or 3D, there would be 20 dimensions, and all opaque, and ever changing, and you do not know which one is more important which one is less. Good luck learning by heart how to do it in a book.
Of the past 5 months 4 of those had nearly no good setups for me, it was very hard. I can't just do nothing. So I took really terrible setups. Way too many.
Ok let's skip the excuses. Even if I am not trying to go only for the ideal stuff at all, I've been taking way too much, I went through my logbook and I would say I took 2-3 times too many.
We want to compete, we want to play the game.
Most people, and most people this idea is targeted to, are at an intermediate level to advanced.
Beginners that do not even have an edge well overtrading is not really hurting them is it. They do not give back profits, there are no actual profits to give back!
A word for beginners. Since we're going to end up investing anyway aren't we? Well perhaps they might as well start with managing a simple low risk portfolio.
Build a solid base. Might as well start with the easiest part. Least difficult. And might help avoid overtrading from the start. If I could start over I would not hesitate.
Once an intermediate has his niche, a few currencies, his favorite websites & tools, and an edge, well that just won't do will it.
There is no resting on laurels until we really have plenty of knowledge, strategies, instruments we can handle.
Constantly look for more edges. And progressively widen the business with more currencies. Can also add commodities.
With time the base grows, like a strategy game. Might want to test the new strats on a separate low stakes accounts while running the core one on the real account.
A player with several edges, and a wide array of instruments, as well as a couple years experience, is what I'd call advanced.
At some point if we try adding even more instruments or strategies we'll just mess it up, it takes enough time to manage our vast business already.
And after several years the strategies sort of come without looking for them anyway. Plus the markets do not have infinity opportunities to offer.
Just keep doing research, improve your understanding of the market, keeping updated on everything...
A serious advanced trader will be busy, no worries here. The issue is there are not enough opportunities. We want to compete, we are eager to fight.
If nothing happens in the market, price is just random as far as we know (only retail day gamblers will say it's not and we know how well they perform), what to do?
Well there are some tricks:
- First use and abuse adding to winners. If you're going to overtrade anyway, might as well do it with a winner than some choppy garbage. Not ideal, use this in last resort. Adding to winners should probably have some rules to it. Better to have bigger winners than more losers.
- Go manage a portfolio on the side, invest a little / position trade. And when the urge to take a trade comes, find a good winning investment and add to it. I would not start dreaming of adding and adding and adding to Forex, but with stocks, sure. Buying an additional S&P call is like taking a new trade. Better this than gambling on 2019 EURUSD.
- If you have a severe addiction and just can't help it, well... I guess in last resort there is still the option of going day gamble on the side, but this should not take your attention from your main business. This can easily eat up time & focus, and mess up results without adding anything positive.
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