Over Traders Anonymous: Here's A Great Tip

Over trading is the single most damaging thing to an account. the commissions alone will eventually slowly eat away at capital and that's not even taking into consideration the mental and emotional drain you will go thru. Your soul goes into a dark place when you over trade and get poor results. Sometimes it made me even angry and i used to lash out at others.It took me years to figure out that trading more ironically meant more losses, NOT more profits. The less you do, the better. I average about 2-3 trades per day normally. Any more than that and you are opening up the potential to getting emotional. It's a fact, the more you trade, the more emotional you will be get and the less rational you will be get. You will to likely scalp too much and you end up going short and long and short and long. Your head will be all over the place. Like a vegas gambler looking for one more fix.here's an awesome tip to avoid emotional trading or over trading: Make sure every trade have a story behind it. Give each trade a personality and a reason why you are in it. Write down in a quick email to yourself on why you like this trade. By the time you are done writing the email to yourself and you are getting ready to send it out, you have might already realized that this trade was an emotional reaction and there was nothing there to begin with. So before each trade, write an a email to yourself describing what you like about this trade and i guarantee you will realize that many of your trades are just emotionally driven visuals. At the end of the day, you can look back at those emails and see what you were thinking and what you were doing right or wrong.