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Browse Topics:    Trading Strategies    Research & Analyze    

Lee Bohl on Overtrading

Lee Bohl discusses the dangers of forcing unnecessary trades.

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Well, I think one psychological challenge that new traders face is overtrading. I think they feel that they always have to be in the market or always doing something. And actually, if you're following some system or some rules for your trades, they're not always going to give you a signal to do something every day. As a matter of fact, if you try to do something every day you'll probably lower the standards of the trades that you're picking. There was a real famous trader that said once, 'It's not the thinking that makes you money, it's the sitting.' And what he meant by that, I think two aspects: Number one, wait for your entries. You're not going to have entries all the time. And, second, once you're in a trade, don't be in such a hurry to get out. Let it work.

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