2 Alternative Risk Management Ideas To Fix OverTrading

Home » 2 Alternative Risk Management Ideas To Fix OverTrading

Risk management is the lifeline of every retail trader’s journey. If your trading capital is your life, you need to live healthy to preserve that lifespan. Therefore, the first objective as a retail trader in the forex market shouldn’t be making a profit; it should be staying in the game long enough to experience consistent profitability.

All traders, regardless of their skill level, would experience losses and losing streaks. This reality calls for a protection mechanism within your trading methodology. Some traders risk a lot to make a little, and some choose to take a lot of small losses to try and catch a big win. However, all these strategies can only go so far if you still enter too many trades relative to your system.

Hence, I would like to break down a few ideas to curb your overtrading, mainly for day traders.

Let’s begin.

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