I have observed that a lot of people feel hesitated while trading. When I ask them why they show such behavior towards trading I get a simple answer from almost everyone that they earn great profit in the start and then they start returning all that. There are also many other reasons that I have heard from the audience. I have also seen people who start over trading while they are on the losing end to satisfy them that one trade will recover all the loss they have face. But normally it doesn’t happen. Over trading leads you to further losses and mess up more things for you which in the long run give you severe heartache. I personally don’t recommend over trading because of following factors I am going to discuss with you guys and I hope they will help you a lot in future regarding your forex trading.
Over trading sometime is present in your trading plans but you are not aware of all those things. I have heard from people who say that we are moving according to our trading plan but still are not getting the required output we analyzed according to that plan. I simply suggest them to have a review of their trading plans and see if there is any problem in their trading plan. I specifically suggest them to se weather their trading plan is free from over trading or not because if the plan you made is wrong then what would you earn by following such a useless path.
I suggest people to slow down the pace and look at the future. If you will start thinking in long term then you will find that your slow pace is beneficial rather than earning millions in a single night. Such profits that come with a really rapid pace also returns back with the same pace in forex trading business. Thus I recommend people to lower down their pace and avoid over trading if they really want to earn the profit with a persistency.
Second thing I recommend people is to target a weakly goal for their trading purposes. As I set fifty to hundred points weekly goal for my trading. This is a realistic approach I think and once I succeed in achieving this I never put this on risk by greed for more. As there is an old saying greed is a curse, so I never step towards over trading. Once I achieve the goal I would go for anything else except trading.
Third thing which I personally think is the key to any trading is to ask you a question. First of all ask yourself do this trade really profit worthy or will just waste my money and time before stepping into any trade. When you will have this query in your mind you will observe various aspects of that trade. By doing so you would be able to analyze the actual situation of the trade. There are a lot of things that just seem really good and eye catching but in fact they are just a waste of time and energy. As there is an old saying all that glitters is not gold. So always see the actual facts of everything and then take any step.
If you see that a lot of time you have negative trades, huge drawdown very often – make pivot points, see daily chart, and trade and follow trend.