How to stop overtrading and get rid of your trading addiction?
Hello traders,
The opinions expressed here are purely my own, and I make no recommendations or offer anything for sale.
I don't want you to end up like a lot other traders I know who have gone or are going broke, therefore I'm providing this information to you.
Here are some strategies to help you break your trading habit and quit overtrading:
I - Define a set of rules
Overtrading can be curbed, first and foremost, by instituting some ground rules.
Build a plan that will tell you when you should stop trading so much.
Gain/loss in monetary terms is not the only metric that may be used.
You need a written checklist to work from either method.
Say I want to make X dollars per month, which works out to X/20 (give or take) dollars every trading day on average.
If I hit my trading quota for the day, I won't make any additional trades that day.
Why? Who among you here kept trading after generating a respectable money and ultimately lost it all?
This is because we humans aren't programmed to be traders by nature.
When we finally start generating some money, human nature takes over: we get greedy, start taking more risks, and stop noticing the red flags we normally would.
II - Find a hobby
Having a pastime is also important.
When you're done with the market, you can do
A possible explanation is...
- Physical activity (I've been working out twice a day to improve my health, but also as a form of meditation and distraction from my trading).
An intraday trader's workout schedule naturally includes times when there are no open trades.
When I am engaged in SWING trading, I am taking trades with large enough timeframes that it is perfectly acceptable if I do not check the charts for a number of hours in a row.
Maintenance Work
You can be making dinner for yourself or your loved ones.
Having a friendly chat with a pal
If you have a genuine interest in trading, your friends will probably be interested in hearing your take on the markets and your trades.
Don't give them any money advice, of course.
You should avoid putting yourself in a position where you have to advocate an action or inaction that could potentially result in losses and be blamed on you.
Avoid taking sides and instead focus on sharing your experiences.
When I write, whether in a journal or on a regular basis, I feel like I've gotten a lot
The key is to have something to do every day after trading, and that should help.
I call it a day (morning or afternoon) when I've had three consecutive intraday losses and go do something else instead of trading.
III - Find a buddy
Having a trading partner is also something I would recommend.
Your trading buddy can be someone you feel comfortable talking to about the markets while you're both working.
My dad and I have a trading group we chat to often, and we share our opinions on whether or not a given trading setup is promising.
The purpose of this meeting is not to discuss potential trades but rather to serve as a mental coach.
A person you can text when you're feeling down.
Then they'll tell you to log off immediately.
Sometimes, hearing it from someone else is all it takes to put it into action.
IV - Turn off your computer
Last but not least, please silence all electronic devices.
Such is physically removing yourself from your screen by turning it off.
To succeed in the trading world, you must differentiate yourself physically.
As a result, you'll be able to take your mind off trading and focus on anything else instead.
To summarise:
* Last but not least, please silence all electronic devices.
* Such is physically removing yourself from your screen by turning it off.
* To succeed in the trading world, you must differentiate yourself physically.
* As a result, you'll be able to take your mind off trading and focus on anything else instead.
