Date:Sun Dec 22 2024Tokyo:14:23Sydney:16:23New York:0:23London:5:23CET:6:23
BinaryOptions.net Forums› General
What Are The Problems Of ''Over Trading?''
Hello all,
Most of the traders couldnt handle their emotions. So they are going to martingale or taking too much trades till it goes in the righy way also called as ''over trading''.
Why are people attracted to this?
The answer is simple, it is in our mind and brains.
- Winning trades releases Adrenaline and Dopamine.. This gives you extra confidence. This is a feeling you like and your body gets addicted to so you fight next time to win again and again. But the market will defeat you sometimes and this is where it gets dangerous. So be aware of that please.
- Losing trades releases Cortisol. Especially in situations with high stress. Executive functions that help you with advanced thought processes like strategies, shut down. And the Amygdala, our instinctive brain, takes over. This is known as a ‘’Amygdala Hijack’’ The body makes a chemical choice about how best to protect itself. In this case from the shame and loss of power associated with being wrong and as a result is unable to regulate its emotions or handle the gaps between expectations and reality. This makes you over trade or martingale and destroy your account. So you have to stop yourself from an ‘’Amygdala Hijack’’.
Mine advise would be: Set your manual stoploss at around 2 per day or session. Understand that if you hit your stoploss early, the market are not conducive to your strategy and you will lose more if you continue. Your emotions paralyze you and your biggest enemy. The goal is to slowly desensitize yourself to wins and losses.
For example: 1 win per day is 22 wins per month. So focus at first on 1-2 trades per day and by end of month its many wins. Low volume, high itm trading.
Hopefully this will helps you more with trading.
Greetings,
BSB Zen.
Blueskybinary.com
Most of the traders couldnt handle their emotions. So they are going to martingale or taking too much trades till it goes in the righy way also called as ''over trading''.
Why are people attracted to this?
The answer is simple, it is in our mind and brains.
- Winning trades releases Adrenaline and Dopamine.. This gives you extra confidence. This is a feeling you like and your body gets addicted to so you fight next time to win again and again. But the market will defeat you sometimes and this is where it gets dangerous. So be aware of that please.
- Losing trades releases Cortisol. Especially in situations with high stress. Executive functions that help you with advanced thought processes like strategies, shut down. And the Amygdala, our instinctive brain, takes over. This is known as a ‘’Amygdala Hijack’’ The body makes a chemical choice about how best to protect itself. In this case from the shame and loss of power associated with being wrong and as a result is unable to regulate its emotions or handle the gaps between expectations and reality. This makes you over trade or martingale and destroy your account. So you have to stop yourself from an ‘’Amygdala Hijack’’.
Mine advise would be: Set your manual stoploss at around 2 per day or session. Understand that if you hit your stoploss early, the market are not conducive to your strategy and you will lose more if you continue. Your emotions paralyze you and your biggest enemy. The goal is to slowly desensitize yourself to wins and losses.
For example: 1 win per day is 22 wins per month. So focus at first on 1-2 trades per day and by end of month its many wins. Low volume, high itm trading.
Hopefully this will helps you more with trading.
Greetings,
BSB Zen.
Blueskybinary.com
Comments