Trading 101: Overtrading
The tendency for newer people to trading is to want to get into "the action". This means that most fall prey to overtrading.
In this video I discuss how this is easy to do and why we must avoid it.
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BEER.Hey @taskmaster4450le, here is a little bit of
BEERfrom @pixresteemer for you. Enjoy it!Learn how to earn FREE BEER each day by staking your
BEER.I could say that I am at the opposite end of the over-trading as currently I am just standing still and I cannot say in what direction the market is heading. Still need to learn some market analysis to use it in my favor, but until then I will limit my mistakes.
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Summary:
In this video, Task discusses the concept of over trading in the world of trading. He emphasizes the importance of patience, having a proper exit strategy, and following rules to maximize profit potential. Task highlights the difference between day trading and swing trading and advises not to force trades when there are no signals. He stresses the significance of allowing trades room to develop and not letting fear or excitement drive trading decisions.
Detailed Analysis:
Task delves into the common pitfall of over trading in the trading world, especially for new traders. He explains that in a space filled with numerous trading possibilities and signals, the temptation to jump into every opportunity can lead to missed profits. Task points out that impatience, fear, and the desire for instant gratification are detrimental behaviors that new traders often succumb to.
He stresses the importance of giving trades room to breathe and develop, noting that trades need patience and space to fluctuate. Task mentions that having a set exit strategy, paying attention to parameters, and following established rules are crucial in maximizing profit potential.
Task also discusses the distinction between day trading and swing trading, highlighting that the trading approach varies based on the timeframe and desired returns. He advises traders to avoid forcing trades on days when there are no signals on their watchlist, suggesting that it's acceptable to sit out of the market when necessary.
Moreover, Task emphasizes the significance of recognizing market trends and waiting for the right opportunity to enter trades. He advises against letting trades run on the downside while advocating for intelligent exit strategies and not trading out of boredom or for excitement.
In conclusion, Task underscores the importance of being disciplined, patient, and strategic in trading decisions. He emphasizes the need to avoid over trading, follow established rules, and remain calm and focused on maximizing profits over time.