Overtrading is a real addiction, and addiction to anything is very bad.If you are overtrading, knowingly or unknowingly, then you are indirectly trading for pleasure.
Any experienced trader who has spent more than a year in a market can know that overtrading can be a very addictive habit. Whether you are winning or losing, if you are addicted to trading, you are indirectly hurting yourself.
In today’s article, we are going to see why overtrading is harmful to your trading account.
Compared to other addictions, trading can be far more addicting! If you are thinking about the trading day in and day out, you are indirectly addicted to trading. Although trading might play a significant role in your life as a trader, you shouldn’t consider it constantly.
Recognise that while you have no influence over the markets, you do have power over yourself. Trading only when there is a chance is the greatest method to becoming a profitable trader. I’m not saying that you shouldn’t spend time analysing charts or testing techniques; you must do that to improve as a trader every day. However, thinking about charts and strategies all day won’t make you a successful trader.
When you are at your trading desk, there is nothing else taking your attention away from trading. However, it is quite difficult for you to focus and concentrate on your technique when you are traveling or away from your trading desk.
Traders frequently engage in trading while on the road or doing another job. When you do this, you are not performing at full capacity because there are numerous distractions outside of your trading zone. Even if you have the ideal trade opportunity, I advise you not to look at your charts while you are traveling. Markets will present you with tons of chances, but in order to take advantage of those opportunities, you must remain in the market over the long run. You’re becoming addicted to trading if you frequently check your phone for trades, especially while you’re not at your trading station. Additionally, rushing through a trade will greatly raise your chances of losing money, which might result in overtrading and frustration.
Overtrading can practically take every rupee, making it a true addiction. Overtrading can occur for a number of causes, but revenge trading is the most frequent one. When you keep losing, you start to get more and more angry and eventually start to overtrade.
You should select in advance how many trades or stop losses you intend to take on a given day in order to avoid overtrading. You can prevent yourself from developing a trading addiction by doing this.
Through my Booming Bulls Elite Traders Live Mentorship Program, I give my students a perfect trading plan and the exact process required to become successful traders. So that they don’t get addicted to trading and only trade when there is an opportunity. I hope that through this article, you were able to understand How overtrading can make you a bad trader and the consequences of overtrading.
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