Overtrading has ruined my trading account. The impulse to put on trade and the desire to be in trade always has made a big hole in my trading account.
Overtrading bug bites me whenever I have my account in green especially with first trade of the day. When the bug bites, i turn green days into red days (often big red).
It is learnt that we should not trade everyday.
Each n everyday is not conducive for trading.
I have chalked out a plan to counter this bloody bug and probably my gambling instinct.
I have decided to trade only once in a week. Four weeks in a month means four trades.
Whether i make profit or loss in a week, no more trading for the rest of the week.
When we tend to trade more often, we loose the little edge in trading because of brokerage and taxes. Trade less to save your money.
THE BASIC RULE OF SUCCES IN TRADING:-
TRADE ONLY WHEN THERE IS BETTER OPPORTUNITY AND RISK-REWARD IS FAVOURABLE. IMO
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You, can't choose which is best DAY for trading! Opportunity may come every day for a whole week when market is in momentum and after that may be whole one week is dull for trading.
Try to catch the "Breakout Trades" using Higher Timeframe like 2hr, 4hr, daily charts. I have already give live example in this thread to benefit others. Go through the last few pages.
The easiest way to catch better risk-reward trades are set automatic price alerts on 3 day - 5-day breakout, scan for momentum stocks or stocks in the news. If u want to use 3 days 5-day breakout use 15 min chart and try to scale the position using 3min, 5min charts.
Happy Trading.
