in this video traders we look at tricks
to prevent over trading stay tuned
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description below okay so over trading
pretty much every trader at some point
in their career has full file to this
trap so what is over trading so many
over trading is literally trading too
much trading substandard setups and
paying the price for it so you do really
well you take a lot of care you get your
setups you've found your reg you've got
your profitable strategy rolling and you
execute nice you wait for the bang and
it's working perfectly but then you
can't help but just have a little nibble
on something you think's going on you
think that's a good sure you don't take
that when you shouldn't really be taking
that that is over trading it's trading
in the markets when you don't have an
edge for your specific strategy it's
trading just on a whim it's trading just
from just thinking about it off shooting
from the hip not being planned all those
kind of things and ultimately you know
it can be devastating if you account
some people have it and it just harms
them a little bit some people do over
trading and it really really just stops
them from going anywhere for months and
months and months and months and months
so it's a big thing to try to overcome
if you can over trading huge thing for
me I was over trading a load and I spin
my wheel spinning wheels I'm gonna kind
of lick this and have some strategies
and setups and ideas and and methods to
stop over trading all of a sudden you
reduce the number of trades you know
then you could increase the size
potentially as well so if you can worry
about missing setups and whatever forget
about that you know you can also
increase your size on your good trades
then you start seeing right well
actually I can trade far far less and
there's wait for my grade a plays and
then start to push them chips in when I
the grade A plus type plays so what a
tips and tricks we can do to prevent
overtraining we were a day trader swing
trader whatever time from a training one
so first one guys about for you it's
have a minimum thinking time penalty so
if you are a day trader right and you've
got an impulse we just like I'm gonna go
along I'm gonna go show I think it's
goin up fingers going down and you hit
the button you in the trade don't do
that and give yourself a 60-second
penalty so in other words you think you
taste of trade just spot and say right
60 seconds timer go and that 60 seconds
just give you the time to think about
the trade where's the risk in this trade
is this really the right setup I'm
really doing this right is this really
the very best trade for me and you start
to kind of think and if the answer said
yes you know I like the trade it's got a
good setup here it's got a good kind of
technical position here there's a good
target for it a sensible stop all the
things you running through yes I'm ready
six seconds up bent bang put your order
in put your limit and put your market in
whatever our market order and whatever
you are not going to be at a it's not
going to be detrimental to you to do
that very unlikely that you're going to
miss out on many trades and they show
off by waiting 60 seconds and if that's
the case then you know accept it because
obviously you're going to be preventing
over trading which is ultimately want to
do anyway so if you miss a few trades
because it went off in your direction
you have to wait 60 seconds and so be it
but really if you think on the face of
it you're probably not you might even
get a better price so forget about that
and just think hey the point is what I'm
doing here is trying to stop myself from
trading impulsively and give myself 60
seconds a more often than not guys you
give yourself 60 seconds and go right
start the timer whether you've got a big
stupid stop watching your desk whether
using you know the web-based Google
thing order using watch whatever hits it
and then more than not you're gonna go
you know what this isn't them this isn't
it's alright but it's not the best set
up it's okay the stops yeah it's not bad
and you start to kind of review it a
little bit more carefully than us the
best thing since sliced bread I'm gonna
take you and you might go know what I
don't when I'm gonna wait for this level
I'm gonna wait for a next cycle to occur
whatever it may be and ends up just
stopping you from John
the gun and now we've gotta be careful
of this you don't go oh that was a
profitable trade I shouldn't have done
that
I shouldn't listen to that I shouldn't
wait for a minute because that's the
market you have a way of tricking you
for doing that but the point is you're
taking control of her impulse and that's
ultimately one of the causes of
overtraining so if you're trading swing
trading you just give yourself an extra
three hours maybe maybe you take kind of
a couple of trades a week just give
yourself a little bit more time say
where I'm gonna take trade notes wait
just come back to three hours whatever
time frame you need come back and
reassess it just make sure it's just
ever time frame we're trading on
stopping that impulse any kind of time
thinking time penalty you can add helps
load right number two guys restrict
number of trade in a day week month this
is a good one you have a trading plan
you say listen if I'm day trading I'm
gonna take three trades in the day two
trades in the day one good trading day
in the swing trading in the month in the
week in the quarter whatever see start
to restrict it and the good thing about
this is if you say to stuff listen all
I'm doing is I'm gonna go take X number
of trades this week when you start
getting towards that number then you'll
do it the first time you do it you'll
gets that number and go oh I won't I'll
ignore it this time but then you stop
yourself then what will happen is you'll
miss some trades that you would want to
have taken so you'll over trade then you
come to the kind of limits X ten in the
week whatever it may be it come 10 trays
and week you'll come to nights ago I'm
out I'm out credits and I've still got
two days ah missed that I missed that
so what they'll then do this next week
it should be very mindful that you're
only taking the very best trades because
you only want those ones to use up your
credits so to speak Swiss and I want to
make sure I've got at least kind of full
credits left for Thursday and Friday
because you know those days have got so
and so day on that and it's going to be
a good level then I really want to keep
some in the bank in case we really kind
of kick off from news or whatever so you
know you end up being far more cautious
and careful about pulling the trigger
and just wildly going crazy and just
trading for whatever it's not a bad
thing to do that guys restrict the
number of trades and put it into a
trading plan etc number three have a
partner body control access to your
account extreme a very extreme but if
you have a trading partner so I've got a
trading partner or Trey
buddy or in a husband-wife whatever it
may be maybe they have the password
maybe they change the password and this
is extreme but if you're you know over
trading it's like listen you have any
trades you've done what I've done this
like a world you can train more that's
it you're out and okay now this is we're
really taking it one step this is if you
go to the point where you're just
breaking your rules and you're literally
I'm not gonna over trade you maybe try
and do that trying to I still can't do
it which again to extreme levels now of
doing whatever you need to do to stop
your over trading if someone needs to
restrict that trading account
then why not whatever tool needs to be
done to stop this over trading damage
then use it okay number four Geysers
keep uh small trading balance in your
account one thing you can do is not have
all your money in your trading account
so you literally say okay well I need to
risk this for the setups that I want and
if I've got this on then I've got no
margin left to cover the position cover
the initial margin position I cover any
kind of adverse moving the position once
that's covered I don't have enough
margin to take any more trades so that's
good because I didn't want to take this
trade or I'll always take these to trade
or whatever maybe that works better for
swing traders of course you've got two
or three positions on stop even taking
your fourth or a fifth or sixth or
whatever it may be and you have to kind
of wait and then you kind of think well
I don't wanna take these trades I want
to leave these trades on so that can
help you as can it can stop your most
obvious doing integrate damage to your
account as way they've got a smaller
balance in your trading account enough
to cover your positions if you then have
a big drawdown in the day you're not
going to say any more positions haven't
even bigger drawdown because you have
limited the amount in your trading
account again these are kind of physical
things especially three and four but you
can do to prevent it it really gets this
point one let's have control over
yourself with kind of one and two
restricting the night a number of trays
etc as opposed to doing these but if you
have to then you know do what you got to
do number five guys is create a penalty
system for over trading so that penalty
could be anything it could be hope I
take my husband and wife out and I pay
for all their dinner or I do I do
something I saw clean the house or
whatever the penalty may be now I'm
making this up it's on my head
whatever makes sense to you that's an
extreme penalty like electric shock in
yourself and stupid but you get the
point the idea is that you're doing
something where you know you wind up you
can make the lights of it a little bit
as well that extreme like I say so you
make life through it's like I said like
oh yeah they'll do the clean you know
I'll do all this or do all that but then
you're you're kind of what you're trying
to do is you're trying to say okay yes
these are significant penalties that are
really damaging but again it is a
consequence just adding some kind of
consequence and it's a little bit of
humor too of course but you're adding
some kind of consequence so that you're
linking overtrading with the fact that
hey I've got to do something or do
something is there is a consequence to
this and you obviously at the moment not
linking overtraining consequence to the
damage of your trading account so we're
not link it to something like oh I've
got some sort of penalty here I've got
to kind of buy this I've got to do this
I've got to do something I don't really
want to do and then you start think
we'll actually listen there's a bigger
picture to this it's not just being
something stupid like I've got to go and
clean out the shed if I've got a you
know do something really Smeal but the
point is then it's to make sure you
think and go actually this is serious
because of damaging my training account
so this may be a small penalty yes but
actually in the bigger picture as a big
penalty here because what am i doing I'm
just really really undoing all the good
work I've done and damaging my
confidence damaging my P&L damaging my
trading account damaging my skill set
and my methodology it's not serving me
so okay let me go back I mean look at
one two three and see exactly if I can
implement those just trying to stop me
from over train alright guys that is
some tricks to stop over trading if
you've got any that you have worked off
work for usually I say stick them in the
comment section below always interested
and keen to hear what you guys are going
to say about this kind of topic that
affects every single type of traitor and
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mismanage bye bye
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