Download the Schwab app from iTunes®Get the AppClose

  • Find a branch
To expand the menu panel use the down arrow key. Use Tab to navigate through submenu items.

Lee Bohl on Overtrading

Lee Bohl discusses the dangers of forcing unnecessary trades.

Click to show the transcript

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.

Schwab has tools to help you mentally prepare for trading

Learn more >

Talk trading with a Schwab specialist anytime.
 
Call 888-245-6864
M-F, 8:30am - 9:00pm EST

Get 500 Commission-Free Online Equity and Options Trades for Two Years

Learn More >

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.

(0114-0355)

Thumbs up / down votes are submitted voluntarily by readers and are not meant to suggest the future performance or suitability of any account type, product or service for any particular reader and may not be representative of the experience of other readers. When displayed, thumbs up / down vote counts represent whether people found the content helpful or not helpful and are not intended as a testimonial. Any written feedback or comments collected on this page will not be published. Charles Schwab & Co., Inc. may in its sole discretion re-set the vote count to zero, remove votes appearing to be generated by robots or scripts, or remove the modules used to collect feedback and votes.