Trading is an unconventional business, in that doing more does not equate to making more. Overtrading is one of the most common mistakes made by all traders, particularly new traders. And it’s understandable because your broker is encouraging you to take more trades. They provide you with every tool and service that will give you more reasons to trade. Technical trading tools, expert 3rd party advisors, tipsters and market analysts. 24 hour news wires for fundamental, geo-political and economic updates, both macro and micro updates. And all this information is provided for free! Basically there is always a reason to take a trade, especially in a 24hr market like forex.
This is not blaming or pointing a finger at your broker – they make money when you take a trade so of course they need volume and trading activity and that’s why they are providing these services. The lesson to be learned is that you have to develop and learn your strategy and stick to it. Only take trades that fit in to your strategy and be particular and selective in the trades you take. This will result in you taking fewer trades. Be disciplined and don’t feel you “lost out” because you didn’t follow every reason that worked out being a winning trade. Successful traders are educated traders, be sure to educate yourself and exercise patience as you develop your trading strategy.