One thing you must remember when trading: Don’t overtrade

Overtrading is the most obvious characteristic of a net losing trader.

Poor performance in one market will affect your performance in other markets. If you can’t easily find the reason for your losses in one market, it is likely that you will also suffer losses in other markets.

Learning to stop overtrading requires you to be willing to limit your speculative opportunities and invest more energy in the markets you trade.

The key factor to our long-term success is our ability to manage opportunities and information flow.

One aspect of making the rule of “don’t overtrade” work is to focus on seizing the best market opportunities while controlling the size of the information flow and only focusing on key information to help you take advantage of the opportunities you have discovered.

Overtrading is caused by a combination of reasons: not correctly understanding your time frame, not following the trading rules when trading, and not executing the trading system correctly.

You need to set a behavioral bottom line to stop overtrading, and this line needs to fit your trading system and trading plan. For example, the operating method you use requires you to trade once a day.

The unwillingness to control your behavior is the culprit that leads to breaking all the rules.