Why is Over-Trading the Biggest Mistake?

Over-trading is, without a doubt, one of the most popular mistakes that all traders make at some point in their careers. Also, it is one of the biggest such mistakes and this article will explain in detail what it consists of and why over-trading is so damaging for your trading, long-term and short-term too.

How to know if you are over-trading

Usually, when you have to stop and think whether or not you are over-trading, then it means that you probably are. Most of the time, traders do it without even realizing it. If you are not making money in a consistent manner by trading, then it means that you are certainly falling into this trap. In case you have not yet learned everything about price action trading on daily charts, chances are that you will start over-trading at some point.

Probably the biggest problem with this mistake is that too many traders are simply unaware that they are making it. Some might realize it afterward, some never. This is mostly because of the emotions that sneak up on us when trading. They blur the vision and make it difficult to see clearly that you are making a mistake. This also means that you are abandoning your trading plan which only adds up to the errors and buries you deeper.

How to never over-trade

Because it can be almost impossible to realize that you’re over-trading while you are doing it, the best way to avoid this issue is to never start doing it in the first place. The key to doing this is to plan in advance and stick to your trading strategy no matter the results. Have every step clear in your mind and do not look left or right. This will prevent you from falling into the trap of over-trading.

There is also a nice comparison between trading “like a sniper” and trading “like a machine gunner”. In case you want to avoid over-trading, become a sniper and only shoot at a precise and single target. Do not shoot at multiple ones because things might not end up well for you. In fact, we might have a recommendation to make if you want help when it comes to sticking to a plan. Royal Noble Group is a broker that offers CFD-focused trading and cryptocurrency services on international markets, has a massive presence, and is able to deliver experienced and reliable technologies and resources to many parts of the world. This broker offers three types of trading platforms, a plethora of educational resources, and six account types to pick from depending on your experience. Their official website offers all the information you need if you want to avoid falling into the trap of over-trading and make serious money while doing what you


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