Overtrade? Have we all done it? I think ... yes. Excessive opening a position has the potential to destroy our account. In a conscious state we will really like the activity of "opening a position", especially those that continue to generate profits. Imperceptibly, the preoccupation of falling into a conscious state is turning into an unconscious .. the next thing that we manage is bleeding. What we realize is only the fact that we have gone too far in opening positions. Furthermore, how should a trader behave? How can this "ghostly ghost" disturbance overtrade, get driven out of your mind? Is there a way that can be used to avoid overtrade traps?
If you are still wondering, below I present the concept of a trading plan that will prevent you from falling into an overtrade hole.
1. Set the number of transactions (in a period)
Many traders have the habit of making as many open positions as possible, assuming that the habit will make more profit. Know that it's just a myth. Just imagine you only open a position for a trade 2 times a day and each trade with 50 lots + standard account + only 5 pips? Calculate the total in a year ... is that still unsatisfactory? Or instead you think it's too big for your level? Please just reduce the lot. So how many times do you have to open a position in a day? Most traders use habits 2-4 times as a reasonable and reasonable amount to open a position. Just think of the quality of the signal that you will use to open positions and not utilize as many signals that appear in a day.
2. Always in a positive ending (profit)
If in one period (say a day) you have planned to open a position 3 times. You have run 2 positions open and got a profit of $ 10 for each position. So you get a total of $ 20. Because your trading plan has described for 3 open positions, you immediately look for another opportunity in another signal, but apparently this time you experienced a loss of $ 30. You get 1 chance to open a position and you get a profit of $ 20. Then the total profit that you have gotten from the 4 open positions is "only" $ 10. Maybe you just think it's a joke, cook anyway with open 4 position only get so much. Try to return to your logic in no 1. You just add the lot value per position, then you immediately see the results that you desire, right?
3. Prepare a plan out of a bad state
Market movement is impossible to ascertain direction. There are times when your day is really far from the expectations you have planned. Almost all of your positions are in a loss condition. Here I am trying to give tips to keep your account in a positive condition. One way is to use% of the value of your account. Either 2% or 5%. Keep the account positive. Or you can also use the accumulation of the most valid signals from your system that is "broken" by market movements. For example you get a maximum of 3 times the most valid signal from a failed system then you will stop opening that day. The key word to be achieved here is consistent profits. It is not as difficult as most traders imagine. You just need to set a strong discipline in following the trading plan so that the overtrade conditions that will lead you to the inconsistency of profit can be avoided.
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