8 Common Problems That 90 % of the Traders Face

Problem 5: Over-trading

It usually refers to one having too many open positions, or the frequency of trading is too high.

Causes & Solutions:

The reason for over-trading could be due to the unawareness of the importance of risk management on the portfolio as a whole.


Having too many open positions at the same time will resulted in excessive risk exposure. Trading too frequently will result in massive drawdowns especially, the market is not in a condition that favour your trading strategy, and more often than not low probabilities trades are being traded as well.

One of the ways is to set a limit on a total trade you can take a day. For example, if you are taking 20 trades a day, try to reduce it to 10 or even 5. This will shift your focus to only finding the very good trade.


Another way of doing it is to set maximum losses you can take per day or per week. Once this limit is hit then stay away from the market and come back the next day or next week.

Last but not least

It is impossible to overcome all your mental obstacles just by reading books or watching videos alone. It requires hours of practices and dedication in order to get your mind reprogrammed. Without this, you will end up making the same mistake you promised yourself not to again and again.


However, with the right framework, this can be done effectively and save you from years of trials and errors, it also means money being saved from giving it to the market.

Learn how our "core of successful trading framework" that helped hundreds of traders around the globe obtaining consistency in trading in as short as 3 weeks time.  

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Disclaimer: Trading in financial instruments carries a high level of risk to your capital with the possibility of losing more than your initial investment. Trading in financial instruments may not be suitable for all investors, and is only intended for people over 18. Please ensure that you are fully aware of the risks involved and, if necessary, seek independent financial advice. The educational content on Trading Minds is presented for educational purposes only and does not constitute financial advice.

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