How to Avoid Over Trading

Friday, December 26th 2014.

In doing an economical act especially in forex trading, we cannot do it excessively as it will have an impact on the balance of the funds that we have. One of the terms that are known in forex trading is trading over where you make trading currencies aggressively but with a less consideration.

You might consider that such action did not bring great losses due to tomorrow’s money market will be re-opened. But do you know if over trading will have a major impact for long phase?

Avoid Over TradingOver trading as a decision could be caused by internal or external factors. You may have a high obsession to earn a bigger profit so aggressively so that you trade blindly. Emotion inside you must be controlled. Thinking with a clear thought and see that there are still a lot of things you need to consider.

Over trading is often done by beginners in the money market because they are too obsessed yet forget that a decision was made with the series of consideration.

Decisions taken by a trader is often influenced by the broker. As we know that the broker will get commission from each transaction we do so there is a possibility of some brokers are not responsible and only encourage traders to make transactions.

In order for your forex trading activities to be more objective, try to ask for consideration of analysts who actually know about the condition of financial markets at the moment. In addition, you can also subscribe to market news from some trusted sites so that you can see in real market conditions.

External triggering factors of over trading should be encounter wisely. For some beginners, maybe they will be too tied up with what was said by the broker without looking at other aspects that should also be one component in the decision making. The following are some of the things that become triggers of over trading:

  1. Irrational target,
  2. The development of technology,
  3. Consider forex trading as gambling.

You must have a rational target in accordance with the funds you invest. The obvious target will facilitate you in evaluating any strategy you use. By evaluating your strategy, the nest step you take will be more advantageous.

The sophistication of the technology may help you in making transactions but do not let yourself to do over trading. Forex trading is very different from gambling because it involves market analysis with a measurable advantage.