How to Overcome Over Lot, Over Trade, & Over Confidence
Starting trading is easy, surviving in the trading world is just challenging. Beginner traders are often faced with various problems, ranging from lack of capital, less than optimal risk management, trading with emotions, to overtrading.
There are many scenarios that can be referred to as overtrading or opening too many positions, too many trades in a short time, trading beyond risk limits, and so on. In essence, overtrading is trading without a good strategy and management so that the trading business that is carried out tends to be like playing gambling.
These are the characteristics of overtrading, namely, feeling too confident after one win, trading without a plan and inconsistent, tending to be lazy in opening and closing positions, desperate to open positions even though they have lost several times, these are the characteristics of overtrading. Of course, if not addressed, traders can lose a lot of funds and cannot trade long term. Here's how to overcome overtrading:
Realistic Target
The objectives in the trading plan also play a role in the profits a trader can achieve. At least that is what is found in almost every biography of successful traders. The goals that traders make can be used as guidelines and guide traders so as not to get out of line.
According to psychology, a person can work effectively when he has a goal and understands that goal. In making goals in forex trading, you should make goals as realistic as possible according to the ability of traders. Don't be too hopeful or self-deprecating. In addition to profit goals, you should also make a wise stop loss plan.
In addition, every trader must have a realistic profit target so that over trading does not occur. Realistic targets mean targets that can be achieved consistently. If traders are just starting out trading, then start with a small profit target. A reasonable and realistic profit target will increase confidence so that transactions become more comfortable and secure.
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