Many retail traders often have very less capital and with that less capital they trade in excess of the risk limit. This is why they open very big orders in a hope to make it up by trading . This is called over trading. And this is one big reason for a loss!
For sure, overtrading is very common problem, especially for newbie trades lacking experience. They often think that they need to make more trades if they want to earn more, but in fact it leads to overtrading and underperformance. The trader would be able to avoid overtrading if any of the trades executed would fit the requirements set forth by the strategy rules. So, the trader should avoid all emotional or discretional trades at all and stay out of the market if there is no setup he is looking for. The simpliest way to find out about the average number of the trades that he should execute per day or per week is to perform backtesting of the strategy on historical data using special software like Forex Tester. As the result, the trader will get detailed information on the number of the trades executed in accordance with the trading system and then use it to calculate the average number of trades for each period like day, week or month. It is also important to understand that it is impossible to benefit from each interesting setup. Despite the market provides numerous trading opportunities, trader should focus not on attempts to use them all, but on doing his best in those opportunties he spotted.
The key is to understand how it really works and who is right to work with. I was losing funds to a broker and by the time i realised it, i had already lost $52000 which was over half of my savings. I met a friendly trader and she directed me to the recovery agent Mr Bart Kasch. He helped me recover all my money, every penny. Referred him to friends and colleagues already, you can contact him if you need help at [email protected]
