Overtrading has afflicted all of us at one time or another.  I have come to learn that less is more. In the trading game, simplicity trumps complexity.  More often than not, in my maturation as a trader, it seemed that I fiddled with a trade and adjusted it only to later regret my meddling.  Embedded in this premise is the virtue of patience.

It is crucial to give your position time enough to work without tinkering with the trade.  You should only consider adjusting when the original premise for entering the trade changes.  I was brought up to believe that “work ethic” is the gold standard.  I came to believe that if you want to get ahead you must work hard.  Unfortunately, trading does not necessarily reward over activity, in fact, the contrary is true.

 Hopefully I can best explain through an analogy.  Some of the most beautiful music in the world has not been defined as the piece with the largest number of notes in the work, but rather, the dynamics of the music;  the spaces between the notes, the timing, the blend of instruments.  In other words, it is the subtleties of the music.  The beauty of the musical composition is not measured by how many complex passages the composer has created; rather, it is the flow, the dynamic and mood that is most important.  So it is with successful trading.  Don’t get caught up in thinking that you need to “add more notes to your composition (the trade).”

  Do your do diligence and place the strategy that best optimizes your expectations at the time of trade entry.  If your expectations change then consider adjusting.  Part of your expectation is based upon the time frame that you are trading.  If you are a day trader, then your expectation may be based on a 1m chart.  However, if you are an “End of day” trader with a longer term perspective, then do not make adjustments based upon small insignificant and normal fluctuations in the market.

I have learned through my years in trading, that money flows easiest when I refrain from overtrading.  It is less costly and less stressful to “Chill Out” and let your position work.  It is not as important that you understand every strategy known to man, but rather, how to best apply what you know at the right time and do so only when needed.  Best, Robin

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