Overtrading is possibly the biggest and most recurring trap a trader will face, and it needs to be personally addressed by every trader.
I have a number of components hardwired into my system which operate to prevent overtrading, and I would say they are absolutely fundamental and crucial aspects to my profitability.
As you are (i assume) yet to see the specifics of my trading system, I can suggest a quick fix if you are a trend trader. Most trading mentors/educators will advocate trading larger timeframes, but I am too impatient to want to trade daily timeframes all the time, so I will suggest a couple of other options.
The first suggestion I have is to take 10 minutes or so off after every trade is closed. Use the time to reset and to move back in a calm and relaxed mindset.
Another suggestion specifically for trend traders is to use a tool that finds the best current trends available in your chosen timeframes and markets, and only trade those markets.
My favourite tool for locating the strongest current trends in any timeframe in any forex market is Forex Trendy.
As mentioned elsewhere in this document, Forex Trendy is effective, affordable, is always up to date and for the price of a couple of coffee’s a month is really a no brainer for any trend trader wanting to reduce the time he spends analysing the markets and finding trades.
The comparative amount of time I save now that used to be spent looking for trades and analysing trends is ridiculous. I am just surprised Forex Trendy isn’t more expensive.
If you try those suggestions but still find you are having trouble overtrading, then you need to do a deep dive into what is going on under the surface of your trading methodology and mindset. My view is that solid discipline and effective methodologies are the antidote to overtrading, so if you aren’t making headway on the problem, you need to address the fact you are most likely addicted to trading, and your greatest motivation is probably not making money - it is something else.
