DislikedOne of the main things I have taken form this excellent thread is the continuous emphasis on avoiding Overtrading. Since reading it I have recognized more clearly the dangers of this and am better off financially and psychologically as a result. Previously I was trading at certain specific times of the day every day and found this was leading me to try to `force` the trade. Now I am much more picky and waiting for much clearer signals as well as spending a lot more time away from the computer -end result= more money.
Thank you for your repeated...Ignored
You're right that I've been talking about overtrading a lot..Because its very important yet I can't talk enough of it.
There are two main reasons behind why you should avoid overtrading.
1.It makes you lose money by making sloppy entries.
2.This is even more important.You miss real opportunities because of overtrading.
Lets say you made 3-4 really bad entries (and you know you been overtrading).You just felt you must trade and lost quite amount of your capital.
But right after your overtrading you get a real opportunity (very simple,low risk,easy to catch) but this time you're scared to take it because of your previous losses.
So overtrading damages you both financially and psychologically which is the end of story for a trader.