I came across several posts written by members who are worried about over-trading, advocating solutions such as quitting for the day after grabbing 10 pips. I think there is some confusion and irrational fear out there about over-trading. Perhaps there will be some who will disagree, but I see over-trading mainly as jumping in twice or more times on one single setup, instead of trading each setup just once and then wait until your system yields another setup…
Example: let's say you close a trade with profit, then discover that price continues in the same direction and immediately decide to jump in again to scoop up some more pips, but instead price turns against you this time and you lose the profits you just made -- I would call that over-trading.
Though I don't see how it is over-trading if you trade each setup only once, but trade many setups over the course of the day, as long as you're trading according to your system(s) and remain focused and are not tired. It works fine for me. Of course it can also depend on the system you're using, but if your system yields more than one good setup a day, why would you be done for the day after reaching a daily quota from one setup, unless of course you're busy with something else and have limited time for trading? What do you guys think? Is there a general misconception about over-trading or is it just me? Just a bit curious.
Example: let's say you close a trade with profit, then discover that price continues in the same direction and immediately decide to jump in again to scoop up some more pips, but instead price turns against you this time and you lose the profits you just made -- I would call that over-trading.
Though I don't see how it is over-trading if you trade each setup only once, but trade many setups over the course of the day, as long as you're trading according to your system(s) and remain focused and are not tired. It works fine for me. Of course it can also depend on the system you're using, but if your system yields more than one good setup a day, why would you be done for the day after reaching a daily quota from one setup, unless of course you're busy with something else and have limited time for trading? What do you guys think? Is there a general misconception about over-trading or is it just me? Just a bit curious.