How to Deal with The Problem of Overtrading in a Strategic Way

 Anyone can open a trading account and start taking the trades. Due to modern technology, people can easily take their trades and start their trading business without having much complexity. Getting access to the retail trading business is not the problem that traders face. Usually, retail traders fail to survive in the investment industry. Most people develop some bad habit and blow up their trading account within a short time. For instance, consider the problem of overtrading. Almost every novice trader faces such a problem in their life.

deal with the problem of overtrading

So, can we deal with the problem of overtrading and make our life better. Well, the answer greatly depends on skills and actions. Today, we are going to give you some amazing tips which will allow you to deal with the problem of overtrading and let you trade the market in a structured way.

Increase your account balance

Due to undercapitalization, many retail traders overtrade the market. The amount of profit that they make from each trade is not enough to support their family. Thus they are mentally forced to trade with high risk which increases the problem of overtrading. But if you start trading with decent capital, you no longer have to trade with a big lot to earn a sizeable profit from a single trade. But do not invest a big sum of money at the initial stage. You should prepare yourself first and back-test the trading strategy in the demo account. Only then you can succeed as a retail trader.

Lower down the leverage

Leverage plays a critical role in the problem of overtrading. Usually, retail traders have access to the high leverage trading account in Singapore. Thus they have the option to have multiple open positions in the market. But having multiple open positions increases the risk and creates the overtrading problem. That’s why smart traders always trade with the low leverage account. Though it will be a big challenge to deal with the low leverage account, it will allow you to focus on the quality trade signals. Soon you will become confident with your actions and thus you will be able to make better trades.

Select your asset carefully

Novice traders don’t have any asset selection process. In general, they take the trades in the market without doing the proper research. On the contrary, professional traders do in-depth research on the market and find the top-rated mutual funds. It helps them to reduce the risk exposure in the trading professional significantly. You don’t have to trade all day long or focus on the long list of assets. Instead, you should be focusing on the major asset as they give better signals. Though it will take some time once you learn to pick your trading instrument wisely, you should be able to make better decisions.

Trade in the higher time frame

Selecting the lower time frame is another key reason for developing the problem of overtrading. But if you chose to trade in a higher time frame, you are not going to face any problems. Professional traders often think that higher time frame trading is the best way to make a profit in the long run. If you want to survive in the trading business, you should have the patience to find reliable trade signals in a higher time frame. Slowly you can eliminate the problem of overtrading.

Avoid trading the news

Some people prefer to trade during the major news. They think it is the most effective way to make money in the trading industry. But the professional traders always discourage the rookie traders to trade the major news. Instead, they encourage them to master the news analysis process. Once you learn to deal with the news data, you should be able to take high-quality trades in a stable market condition. Thus you will no longer have the tendency to overtrade.


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