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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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Important Disclosures

Past performance is no guarantee of future results.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions.

This discussion is provided for illustrative purposes only, and should not be considered an individualized recommendation or personalized investment advice. The strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation.


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