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vanathi
Mar 17, 2022 1:47 PM

Trader's Query - Over trading Education

Nifty 50 IndexNSE

Description

Query :
How to control over trading? In last 4 sessions I made huge losses
I keep on placing orders, once I get loss.

Trading type : Intraday
Trading Instrument : Index

Reason :
Lack of discipline & knowledge
Lack of fear about money

How to rectify:
Trade based on well tested strategy
Less or no trades on news days
Targets vary depending on market situation
Follow trading rules
Example for trading strategy


When you are ready to pay brokerages, lose money because of over trading, you can spend your time, energy and money to learn about trading.
Comments
champtrade111
i share my experience about over trading tendency, is due to revenge trading ..actually when 1st trade goes against you and trader incurred losses they try to recover there loss on second trade forcefully and again if they have more loss ..third trade is huge volume then previous all trade for recover losses and so on ..since this trades are forceful risk reward in more fvr of losses then profit.
what intelligent trader do they trade only when risk reward is in there fevr .. specially 1st trade in a day should be in fvr so that forceful trades avoided and end of day ..trades are profitable ..so trade less and be profitable.. should be strategy. !
vanathi
@champtrade111, Thats right. Instead of forceful/revenge trading, if a trader takes trade when their trading strategy gives entry, most of the losses can be avoided. Thank you for the comment.
champtrade111
@vanathi, thanks a lot for pointing very important mistakes traders can avoided while trades. !
vanathi
@champtrade111, Welcome :)
Einstein15
good topic !! thts needs more attention.
i think if one can follow all the points you mentioned, one wont overtrade. but most cant ,
unless they keep their HEART locked in a cabinet from 9:15 to 3:30 and only use the brain and strategies / rules. :D

you make a good mentor ! bringing up important topics
thanks. keep posting
vanathi
@Einstein15, Will try to lock "heart" & use brain :) Valid point, but really tough as heart can not be locked for more than few minutes.
svmk
Thanks for your time and posted nice video, this is going help many traders in the forum. just to inform you that
I have gone through many training sessions since a year and known couple of good strategies but the problem starts when loose big amount in two or three straight trades and that is over riding my analysis further and making me to take trades on candle to candle basis
You are right this is happening due to lack of fear and discipline
Once again many thanks for your suggestions
Thank you
vanathi
@svmk, If you back test your strategy,then you will gain confidence about it and follow it with discipline. Thank you for the comment.
svmk
@vanathi, thank you
angu012d
should we take trade if 5th or 6th or any other candle breaks previous day high as you mentioned in simple strategy of tatasteel. I suppose NO. As case of 17 jan 22
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