Q.O.D June 4
Q: I’m getting better at trading but notice I tend to overtrade 1-2 days of the week. Sometimes the market sucks me in and at the end of the day and I ask myself, ‘what just happened’. What can I do to keep my discipline in check and only take the best setups in my plan.
A: Thanks for your question and be sure to know you are not alone. Even the best traders have these temporary lapses however it may be the initial sign of stricter discipline or risk management guidance should it occur on a regular basis. That’s no excuse but there are some simple tricks you might want to consider:
– Tell yourself after each trade that you are here to execute a plan and only such. Anything else is a violation of my being a trader.
– Ask yourself which setup you are taking just before pushing the entry button. The rule is if you have to think for more than a second which setup it is, you probably shouldn’t be taking it.
– Lastly, it could be that you simply have too many valid setups being triggered. Take time to review not only your strategies but your plan conditions or filters. It could be that they need a bit of ‘tightening’ to allow for more restriction on entry and thus allowing more strict guidelines for a trade.
