There is a lot of pressure for new traders to profit from trading immediately. Most of this pressure is self-imposed. The newer trader may feel that they need to “pay off” their trading education or computer equipment as soon as possible from trading profits. This will often lead to them falling into one of the trader traps that will likely destroy their account: overtrading!
When traders leave a live class or even an online Extended Learning Track, they often feel empowered. They are indeed empowered, but must use it to their advantage, not against themselves. They are likely to try and take as many trades as possible in order to get as much live market experience as possible as soon as possible. This would be like practicing cricket improperly. If you practice bowling like an American throws a baseball, you may get great speed but will never be able to hit the wickets after bouncing the ball off the pitch to get an out.
Traders need to be selective in choosing what to trade. This is the proper practice part. At Online Trading Academy, we teach our students how to use odds enhancers to select only the best trading opportunities. These opportunities are ones that offer low risk, high profit potential, and high probability for working.
Not trading is valuable too. All too often we try to force trades that do not give us the three key components I just mentioned. I have heard many traders complain that they can’t find a good demand or supply zone to trade. There is nothing wrong with that! If you do not see a great level then you should not trade.
I have often sat in front of my trading computer for hours without executing a trade. I trade to make income so this can be quite frustrating. But I know that getting into a trade that loses money is more frustrating than not trading at all.
Even if you are not executing actual trades you are still gaining valuable experience in watching and examining the markets. This restraint is something to be envied. Most traders learn the hard way by overtrading and decimating their accounts before they realize that it would have been better to sit and wait for a great opportunity instead of losing over and over on bad trades.
There is only one winner when you overtrade. That is the brokerage and exchange that you are paying your commissions to. Be a winner for yourself. Whether you are a spinner or a fast bowler, swing or day trader do it the right way.