Lessons From Overtrading

[Japinat]

There was a week when I placed over 40 ETH trades. Small wins, big losses, endless stress. My account balance didn’t move much, but my energy was gone.

That taught me that more trades don’t equal better results. Sometimes waiting for one clean setup is worth more than 20 rushed entries.Are you trading with purpose or just trading to feel busy?

That is right. Sometimes it is just an overkill to trade more than you can manage.
I have done the same mistake of over trading and ended up in losses most of the times.
I have learnt my lesson and so I only take trades where I feel comfortable to trade.
My trading frequency has now reduced by 80% than compared to before.

Trading is indeed risky for all of us, and every time we decide to trade especially on unfavorable market condition, the risk to lose increases as well. That is why it’s best to trade when there is a perfect timing, or when you see higher probability of profiting from your trades, otherwise if you force yourself to trade just to satisfy your greed for money, you aren’t trading for profits but only to see yourself suffering from losses.

Everything that is an abuse leads to a negative outcome, and trading is not an exception. Trade at your own risk, and trade only when the market condition allows you to trade positively.

[kawetsriyanto]

Trading is indeed risky for all of us, and every time we decide to trade especially on unfavorable market condition, the risk to lose increases as well. That is why it’s best to trade when there is a perfect timing, or when you see higher probability of profiting from your trades, otherwise if you force yourself to trade just to satisfy your greed for money, you aren’t trading for profits but only to see yourself suffering from losses.

I agree that we don't need to force ourselves to trade every time. If it looks like a bad time for trading, it is better to wait for the next opportunities. Sure, trading is risky, even more when it is in a bad market condition. So, we need to be careful to decide the right time for trading. Before trading, we need to analyze the market condition, the current issues/news, and the chart pattern at least. IMO, it is better to do effective trading even if it may be not very often. This can be more profitable than forcing ourselves to trade as many as possible.

Everything that is an abuse leads to a negative outcome, and trading is not an exception. Trade at your own risk, and trade only when the market condition allows you to trade positively.

Exactly. If we do it in the wrong way, the result must be failure. In trading, we can't do it carelessly and with no proper analysis. To deal with the risk and get a higher chance for profits, analysis takes a big role. So, we must ensure to analyze it properly first before we start trading. Just trade when it is in a promising time for trading!

[breske]

There was a week when I placed over 40 ETH trades. Small wins, big losses, endless stress. My account balance didn’t move much, but my energy was gone.

That taught me that more trades don’t equal better results. Sometimes waiting for one clean setup is worth more than 20 rushed entries.Are you trading with purpose or just trading to feel busy?

that is really over trade you need to stick to discipline and make only 1-2 trades per day, and if there is any day that you are not sure where to place ur entry it's more better not to trade that day
its not a big deal if you don't trade on that day consider better to skip a day rather to lose a trade

[Botnake]

Trading requires useful skills and strategies to make your trades come up with positive outcome, so you have to prepare an effective plan prior to trading in the market. Now if you tend to overtrade, and prefer quantity over quality, just to make more money, then you are trading the wrong and ineffective way. That will only lead you to wrong decision making and frequent losses, rather than make a long term plan and just decide to trade when you think you are ready and good enough, and when you think the market is also favorable to trade.

[Fara Chan]

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that is really over trade you need to stick to discipline and make only 1-2 trades per day, and if there is any day that you are not sure where to place ur entry it's more better not to trade that day
its not a big deal if you don't trade on that day consider better to skip a day rather to lose a trade

Your advice is very correct because trading doesn't have to be there every day, so when there are days when we are hesitant about placing entries, it's better not to do anything on that day except for other things outside the market. I really agree with the idea you said because it is still better to postpone trading for a day or two than to experience a minus or lose a certain amount of money due to market conditions that are uncertain in direction. So every trader must be able to understand conditions like this so that they are no longer trapped just because they are hesitant about making entries on a certain day.

[Kelvinid]

A lot of newbies in trading create a wrong mindset on their first trades. Like overtrading itself, they think the more you trade, the bigger chances of hitting the profits. But it won’t work with things that involve high risk and uncertainty, instead trade with good amount of knowledge and caution, and enhance those skills and strategies throughout the process.

Realization like this won’t be understood unless the trader itself starts to lose and wonder why his trades are not working. That’s because they aren’t trading like a masterpiece, but they just trade following those trial and error method.

[SmartGold01]

Everything that is an abuse leads to a negative outcome, and trading is not an exception. Trade at your own risk, and trade only when the market condition allows you to trade positively.

Exactly. If we do it in the wrong way, the result must be failure. In trading, we can't do it carelessly and with no proper analysis. To deal with the risk and get a higher chance for profits, analysis takes a big role. So, we must ensure to analyze it properly first before we start trading. Just trade when it is in a promising time for trading!

For someone to be productive in trading and make more positive result while trading they must learn to go for information and doing proper research while gambling, good analysis helps and anyone who does that can also increase their chances of earning more while trading. No successful trader today who doesn't read to get knowledge to trade, the purpose of reading is to increase their knowledge and make profits while trading.

[Bitcoin_people]

There was a week when I placed over 40 ETH trades. Small wins, big losses, endless stress. My account balance didn’t move much, but my energy was gone.

That taught me that more trades don’t equal better results. Sometimes waiting for one clean setup is worth more than 20 rushed entries.Are you trading with purpose or just trading to feel busy?

If you have traded more than 40 ETH in a week, then you probably have enough money. If there is a lot of pressure due to volatility in the market, then you should always do it with experience and skill before trading. You should never do too much while trading, but it is best to do it slowly and it will not cause any loss of money. I think trading is risky and there is a lot of risk here, so your pressure also increases and there is a fear of losing money. That is why it is better to refrain from trading too much, trade less, and not take too much risk than investing, but if you want to make a profit in trading, then you must take a break.

[justdimin]

For someone to be productive in trading and make more positive result while trading they must learn to go for information and doing proper research while gambling, good analysis helps and anyone who does that can also increase their chances of earning more while trading. No successful trader today who doesn't read to get knowledge to trade, the purpose of reading is to increase their knowledge and make profits while trading.

Not just reading but gaining real life experiences is also something which is quite important. We can't just keep on reading as it will only make us a book worm without any real world experiences and this no longer works. Instead taking trades and even having loses is something which will teach us more than what books can because this will be our real experience and we will know what needs and need-not to be done in future to avoid loses.

I won't say reading is not useful at all but totally depending on it might not work always. We need to be updated with the latest information and should also know how to find opportunities which just the books can't teach us.

[crwth]

This was somewhat of a lesson to me today. With what happened recently in the market, I lost quite a significant amount of my money because of the dump, and it just goes to show how volatile the crypto market is. That's so hard. There's nothing you can really do to prepare for these kinds of things, but having a plan in place for risk management and setting a percentage per trade can help.

[Oluwa-btc]

That taught me that more trades don’t equal better results. Sometimes waiting for one clean setup is worth more than 20 rushed entries.Are you trading with purpose or just trading to feel busy?

Yeah you've been putting in much energy to trading whereas overtrading births unexpected outcomes  like losses and small wins. I know a lot of people trade with the wrong mindset such that they feel the higher their efforts in trading the more profits and benefits they'll attain but as time goes on the reverse is the case, so it's needless to outrun yourself for some certain things like overtrading.

[barbara44]

If you have traded more than 40 ETH in a week, then you probably have enough money. If there is a lot of pressure due to volatility in the market, then you should always do it with experience and skill before trading. You should never do too much while trading, but it is best to do it slowly and it will not cause any loss of money. I think trading is risky and there is a lot of risk here, so your pressure also increases and there is a fear of losing money. That is why it is better to refrain from trading too much, trade less, and not take too much risk than investing, but if you want to make a profit in trading, then you must take a break.

Break really is very important as it will calm us mentally and prepare us for the next trade. Usually traders will go on regular vacations just to make their mind free and enjoy some time with their loved ones or maybe even go on a solo trip if they love to do so. me as a trader will go on a vacation once a month just to relax myself so that I can come back strong. If I miss my vacation than I would loose my extensive thinking capability as my brain will continuously keep on working and this will make me reckless.

Taking a few trades and than taking a break even if we see opportunities is really a good advice as without break our brain will actually do less thinking.

[Ricardo11]

There was a week when I placed over 40 ETH trades. Small wins, big losses, endless stress. My account balance didn’t move much, but my energy was gone.

That taught me that more trades don’t equal better results. Sometimes waiting for one clean setup is worth more than 20 rushed entries.Are you trading with purpose or just trading to feel busy?

More than 40 trades a week can lead to small wins, but there is also the risk of losses. However, it can have a negative impact not only financially but also mentally and physically.
However, trading in excess does not always give good results.
Those who trade just to stay busy will end up losing money.

[WatChe]

Trading is indeed risky for all of us, and every time we decide to trade especially on unfavorable market condition, the risk to lose increases as well. That is why it’s best to trade when there is a perfect timing, or when you see higher probability of profiting from your trades, otherwise if you force yourself to trade just to satisfy your greed for money, you aren’t trading for profits but only to see yourself suffering from losses.

Everything that is an abuse leads to a negative outcome, and trading is not an exception. Trade at your own risk, and trade only when the market condition allows you to trade positively.

As a trader, one must be aware of risk associated with trading and also techniques that can mitigate these risks. We have seen many cases where people keep on trading just to cover loses and all such people end up in losing money. It's very important to have control over your emotions regardless of whether you are losing or making profit. It takes considerable knowledge before a trader is able to judge the sentiments of the market and till then it's important to trade with extreme caution.   

[henmark]

As a trader, one must be aware of risk associated with trading and also techniques that can mitigate these risks. We have seen many cases where people keep on trading just to cover loses and all such people end up in losing money. It's very important to have control over your emotions regardless of whether you are losing or making profit. It takes considerable knowledge before a trader is able to judge the sentiments of the market and till then it's important to trade with extreme caution.   

While that is true, haven't we seen millions of people who traded or invested without a single lick of knowledge? That is the problem with crypto world, not that many people go into stock market, or invest with a brokerage firm with 10 bucks, or even few thousand dollars, without knowing a single thing, they just feel like they are not good enough to know what is what.

However, we are seeing crypto to be a lot more feeling like they are trying to gamble their money away without actually trying. Crypto isn't a casino, it WILL make you rich if you do it the proper way, but if you do not care then you are not going to end up with any good returns. It's clear that we are going to see things change and be a lot more worse if you are not careful.

[MinMan]

Do you really think you can make any profits just by showing yourself busy? Definitely not, you need motivation here as seems like you are being distracted and only plan on looking busy while trading. I'm sure you might be having a very active social life and you won't mind posting regular updates from your trading journey, This is what is making you stay busy at trading as it might also be influenced by your socials.

You should instead try minimizing your trades as much as possible and only focus on 1 or 2 trades maybe of higher values depending on your risk management. This will make you focus fully on that trade and will also not drain your energy as you will have enough time to take care about other things.

I personally would trade only on purpose and if I see any opportunity. Without it, it is just like throwing arrows without any real target.

[Pandorak]

Trading requires useful skills and strategies to make your trades come up with positive outcome, so you have to prepare an effective plan prior to trading in the market. Now if you tend to overtrade, and prefer quantity over quality, just to make more money, then you are trading the wrong and ineffective way. That will only lead you to wrong decision making and frequent losses, rather than make a long term plan and just decide to trade when you think you are ready and good enough, and when you think the market is also favorable to trade.

Exactly, trading requires not only knowledge but also patience which is equally important. It can be said that patience is one of the main keys to the success of our trading system. For example, the patience to wait for the price to move according to our previous analysis, so that we can then proceed with the trade. On the other hand, there is money management that regulates all finances. You may be good at analysis, but if you overdo it with high leverage, you will eventually run out of capital. Therefore, create a well thought out trading plan so that you can survive in a market full of probabilities.

[goldkingcoiner]

There was a week when I placed over 40 ETH trades. Small wins, big losses, endless stress. My account balance didn’t move much, but my energy was gone.

That taught me that more trades don’t equal better results. Sometimes waiting for one clean setup is worth more than 20 rushed entries.Are you trading with purpose or just trading to feel busy?

The reason why your balance does not move much is because the compounding trading fees have eaten away at all your profits. You are lucky not to have made a loss, otherwise you would have another issue: bad trading strategies.

Instead of looking for many trades, look for the good ones. They are few and rare but they exist.

[doomloop]

When it comes with trading one of the key to success beside with the knowledge about trading fundamentals even you really good with your trades once you become much confident still there is a down side trading is also about the emotions and mental state sometimes over trading make more us to get drained and worst part is exhaustion leads toward wrong decisions and overlook things so always considered to enjoy your winnings sometimes people too much dedicate about the money.

It's not really bad to be dedicated to money but taking rash decisions is not a good habit. Over trading will soon become a habit if not treated carefully as this is something which might even show us initial profits and we might think it is better than working a normal job so why not keep placing trades and make tens and hundreds of small profits instead of one big profit.

But, we often forget that with these many profits also comes risk of losing as the trades are never guaranteed to win and most of the times we will hit SL or worst, might even loose a major chunk of our balances.

Minimal trading requires patience. We should not only be careful while opening the trade but closing will be a crucial part as well. Closing is where most will fail so learning about exiting the trade will be really importance once we start taking minimal trades.

[BigBos]

There was a week when I placed over 40 ETH trades. Small wins, big losses, endless stress. My account balance didn’t move much, but my energy was gone.

That taught me that more trades don’t equal better results. Sometimes waiting for one clean setup is worth more than 20 rushed entries.Are you trading with purpose or just trading to feel busy?

The reason why your balance does not move much is because the compounding trading fees have eaten away at all your profits. You are lucky not to have made a loss, otherwise you would have another issue: bad trading strategies.

Instead of looking for many trades, look for the good ones. They are few and rare but they exist.

Yes, we must be able to measure which is more effective, because it would be very tiring if we make multiple entries without achieving equivalent returns. On the other hand, we might be able to make a single entry and achieve better returns.

Furthermore, I believe that making multiple entries is unhealthy. It can lead to over-analyzing trades, when we should be more calm and find the right time to enter. In my opinion, making multiple entries will drain more time and energy.