Topic: 3 things should not be too in trading - page 8. (Read 1321 times)

It's healthy. I have seen many traders who trade and make similar mistakes or apply clear and correct strategies. It's all individual. The only thing that I realized, you need to understand this well and use only part of the capital that in case of failure you are ready to lose.

Actually this is a double edged sword. Generally experts say that markets with large trading volumes are best for trading because they provide easy entry and exit to traders. Moreover the buy-sell spread is also lesser in such high volume markets which make trading much more cheaper as the slippage levels will definitely go down. I think what people should do is try not to be too rigid with their indicators and strategy and must give like a 1-2% benefit of doubt before entering and exiting because generally in market with high volumes pullbacks go much deeper and a lot of false breakouts are spotted. So it's better to create a penetration difference only after which you would buy or sell.

sometimes depending on the strategy that you choose you might end up making a lot of orders per day. for example there are high frequency strategies that even use a bot to execute hundreds of orders per day. sometimes even more. you can't say it is "too many" just because the number is higher. i used to do something like that a couple of years ago for a small amount of profit.

but of course under normal circumstances with a normal buy low sell high strategy, you should stick to minimizing your activities, your amount of money you are risking,...

What the op just said are the ones new traders shouldn't follow or do when they start trading. They should probably instead look for a mentor rather than self research about trading since self research is the one that causes most traders to have incorrect knowledge about some aspects of trading.

Also knowing too many methods isn't really wrong or bad, you just have to apply the proper method at the right time. Mistaking the usage of a method is one of the causes for loss of traders.

I think what op has made is very useful to newbie and even an expert. For number three, the difference is that an expert has mastered a strategy.
Then, for over trading, it can kill an account very fast for both expert and newbie but I wonder if an expert will be over trading...

Indeed, you need to have enough understanding to cope up with every problems and to avoid people from taking advantage on you. Furthermore, we have to accept and learn form our own mistakes which is helpful when we are making a choice. Trading is speculative, we need to be patient and we literally need to have our own plan just to earn and get the benefits that we want.

Applicable only if you cannot handle the stress of handling too many open trades. There are many ways, techniques, and tools you can use to properly manage your trades.



I agree with this. As a rule, I always limit trades to 10% of my trading capital. Anything above that will be gambling.


For beginners, it is just okay to know many methods and techniques in trading. It takes a while before you can find the techniques you are comfortable with. And you may have to go through all the techniques before you can find the one that suits your style.

On Twitter, on Telegram, a lot of people are trading with such guidance. And unfortunately malicious people make money using it. Just like you said. Signal groups and pump groups are a big lie. Don't lose your money to believe them in vain. Trading is not done like this. For trading, you must develop and experience yourself first.

The most important thing is that you understand the trading and no not depend upon signals or trading social media groups. At the beginning of my trading career, i used to listen a lot of you tubers and follow their signals n advises. That's was the biggest mistake i did. They ask you to buy a coin which they already have bought, and then they dumb on you. So if you want to trade, be self sufficient and do not depend upon other signals. The best is to get some training on understanding the trends, bars etc and do trading yourself.

I kind of agree with you. But in this list can be add even a few points

I have read your three point list and there are some correct items on it but let us generalize things. Every trader has its own techniques and style in trading and in their way its either they gain profit or lose. There are no perfect strategies or totally wrong choices in trading since everything is determined by the market. Some players are attuned to trading in huge volume while some are not, this is  just an example about the uniqueness of the trader. So in the end the most important things that a trade should have is knowledge, skills and experience and as long as he knows what he is doing.

Trade too much

This is probably the very common case. Trade too many orders at a time. I once met surfing traders who traded hundreds of orders a day. Almost every day glued to the screen to transact. People who trade this way often hate to set stoploss, of course I still meet people with stoploss and they often take short profits, enter the market continuously and can say their trading history is very beautiful. , rarely see loss orders.
However, once they are at a loss, these traders are the ones who are most psychologically vulnerable, but because they trade often, they always put their capital and psychology behind the priority list. transaction plan. A single loss can make them more vulnerable to psychological and trading out of control. Even resulting in gongs and account destruction.
There is another case that is trade addiction. These traders often prefer to enter continuous orders. Sometimes they don't have any basis for trading, because they want to trade, want to be able to get in and out and see a positive account. But once they lose, they easily fall into the kind of revenge deal. Often new traders easily fall into this situation. In any case, it's still not good for traders at all. If you are at a loss in this case then do not blame anyone, you are the cause of your account.
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The trading volume is too large

This is yet another common case for trades that clearly show greed and desire to eat thick. No matter how good your analysis is, if you enter the market with such a large volume you are gambling. You ignore the probability of the market.
Trading volume is too large, which makes the trader psychologically if the price goes against the judgment. This proves that traders have no rules in capital management and gradually it becomes a habit that makes traders overlook stoploss placement. It is a very dangerous thinking, if keeping this way of trading, it is very difficult to go far from the market.
When trading large amounts, your account goes faster than you think. Once you lose money, this loss will cause you to lose control and make many wrong decisions and lead to losing money. So if you have a large trade loss, do not rush to blame the market or method. The number one cause lies in yourself.

Know too many methods

Many traders take a long time to read and save on trading and then apply to their account. The result is more than expected. Losing no more armor, losing to the end.
This is also the case without exception. The trading method is what makes traders the easiest to fall in. Rarely does anyone try to be patient with a method, learn every nook and cranny of that method to confirm whether they are effective or not, but the trader just keeps looking at the profits and then trading for a couple of weeks to see no results. is to find another.
When I know too many methods, it is easy for a trader to realize that I know a lot about trading, I go through many methods, each holding a little. But the final problem is that the trade is still inefficient, even though the trade knows much, sometimes it makes the trade make the wrong trading decision. Knowing too many methods easily makes traders lose confidence and frustration.
Best traders should not know many methods, just understand and know how to operate 1 to 2 methods is good enough. Left focus on managing capital and psychology. Slowly the results will be improved.
In short, anything too is not good. Everything should be at a moderate level, we learn a little bit each day, trade a little bit each day, forge a little each day. We go slowly, the results come slowly and go hand in hand throughout our trading journey. If you do not want to lose, firstly traders need to remember 3 things that should not be so in trading!