July 2010
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5 Tips to avoid Overtrading

Overtrading is one of the most overlooked mistakes you can make while trading. As a trader you want to make money any minute the market is open, this is understandable, but it doesn`t mean that you need to trade every opportunity that comes across your screen. Trade the most profitable ones and forget the rest. Here are 5 tips on how to spot and avoid overtrading.


Trading without emotions

We all know - or should know - that it affects us negatively when we make a trading decision while we’re in a highly emotional state. And we are told that we should “trade without emotions”.
But does that mean we should become emotionless computers?  That we should only decide because of calculations?

Not exactly

It rather means that we try not to get overwhelmed by our feelings, especially while trading or making important decisions. Such distracting feelings can be for example: